The boom in property prices from 2013-16 boosted the New Zealand household sector’s assets by $184 billion to $1.312 trillion in March 2016, Statistics NZ said yesterday.
That increase contributed 51% of the $364 billion rise in household net worth over the 4 years. In the previous 5 years, from 2008-12, household property values rose $1.5 billion.
Statistics NZ national accounts senior manager Gary Dunnet said yesterday: “When properties are bought & sold, the prices paid establish new market valuations for all properties, not just the ones bought & sold. This has a general effect on property values for all property-owning households.
“From 2013-16, the household sector borrowed additional loans of $36 billion. During the same period, households deposited an extra $45 billion at banks, but they withdrew $6 billion from their equity & investment fund asset holdings.
“From 2008-16, households lent more than they borrowed.”
Mr Dunnet said these were some of the results from the first release of provisional accumulation accounts for New Zealand
The accumulation accounts record changes in the value of assets & liabilities between balance sheet positions. These changes can occur from transactions, and from non-transactional changes such as changes in market value and other volume changes in assets & liabilities (eg, a write-off of house values due to catastrophic earthquakes).
These accumulation statistics will be updated in December. The accumulation accounts are the second stage of a 4-stage programme to improve New Zealand’s national accounts. The next stage is to compile the accounts each quarter, which is due for release in the first half of 2020.
Attribution: Statistics NZ release.