{"id":329343,"date":"2025-12-05T12:07:11","date_gmt":"2025-12-05T12:07:11","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/329343\/"},"modified":"2025-12-05T12:07:11","modified_gmt":"2025-12-05T12:07:11","slug":"new-zealand-fires-housing-warning-at-australia","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/329343\/","title":{"rendered":"New Zealand fires housing warning at Australia"},"content":{"rendered":"<p>According to Cotality\u2019s Pain &amp; Gain Report for the September quarter, 94.8% of sellers across Australia achieved a record-high median profit of $315,000, up from $305,000 in the previous quarter.<\/p>\n<p>Since then, dwelling values posted two strong rises in October and November, increasing capital gains for holders of Australian property.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2025\/12\/Australian-dwelling-values-1.png\" width=\"605\" height=\"414\" alt=\"Australian dwelling values\"\/><\/p>\n<p>The situation across the pond in New Zealand couldn\u2019t be more different.<\/p>\n<p>Advertisement<\/p>\n<p>As illustrated below by Justin Fabo from <a href=\"https:\/\/www.antipodeanmacro.com\/\" rel=\"nofollow noopener\" target=\"_blank\">Antipodean Macro<\/a>, dwelling values have fallen sharply across all major markets.<\/p>\n<p><img src=\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2025\/12\/NZ-house-prices.png\" width=\"660\" height=\"565\" decoding=\"async\" loading=\"lazy\" alt=\"NZ home values\"\/><\/p>\n<p>Real inflation-adjusted home values across New Zealand have fallen back to their pre-pandemic level in 2019:<\/p>\n<p>Advertisement<\/p>\n<p><img src=\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2025\/12\/NZ-real-house-prices.png\" width=\"660\" height=\"562\" decoding=\"async\" loading=\"lazy\" alt=\"NZ real house prices\"\/><\/p>\n<p>As a result, Cotality\u2019s Pain &amp; Gain report for New Zealand <a href=\"https:\/\/www.interest.co.nz\/property\/136312\/almost-one-five-residential-resales-auckland-made-loss-q3-year\" rel=\"nofollow noopener\" target=\"_blank\">reported<\/a> that the percentage of residential property sales made at a loss hit a 12-year high in the September quarter.<\/p>\n<p>Cotality found that 12.2% of resales in the September quarter were sold for less than their previous purchase price, leaving their vendors with a median loss of $50,000.<\/p>\n<p>Advertisement<\/p>\n<p>The 12.2% of losses in the September quarter was up sharply from a peak of just 0.7% of loss-making resales at the height of the last property boom in the December quarter of 2021.<\/p>\n<p>The situation in New Zealand serves as a warning to Australians currently leveraging up to purchase into what is the most expensive housing market in history.<\/p>\n<p><img src=\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2025\/12\/Australian-dwelling-price-to-income-ratio.png\" width=\"591\" height=\"498\" decoding=\"async\" loading=\"lazy\" alt=\"Australian dwelling price-to-income ratio\"\/><\/p>\n<p>Advertisement<\/p>\n<p>First home buyers utilising Labor\u2019s 5% deposit scheme need to be especially careful, since they are carrying very large mortgages with thin equity buffers, leaving them vulnerable to future house price corrections and negative equity.<\/p>\n<p>Following 30 years of near uninterrupted growth, it is easy for Australians to be complacent and assume that home values will forever rise, supported by government policy.<\/p>\n<p>However,\u00a0Australia\u2019s most similar economies\u2014New Zealand and Canada\u2014have experienced severe house price declines of more than 15% from their most recent peaks.<\/p>\n<p>Advertisement<\/p>\n<p><img src=\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2025\/12\/Global-house-prices.png\" width=\"411\" height=\"344\" decoding=\"async\" loading=\"lazy\" alt=\"Dwelling prices\"\/><\/p>\n<p>If Australia were to experience a similar type of correction, then thousands of first home buyers could be driven into negative equity, holding mortgages that exceed the value of their homes.<\/p>\n<p>Please, be careful out there.<\/p>\n<p>Advertisement<\/p>\n","protected":false},"excerpt":{"rendered":"According to Cotality\u2019s Pain &amp; Gain Report for the September quarter, 94.8% of sellers across Australia achieved a&hellip;\n","protected":false},"author":2,"featured_media":329344,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[64,63,99,164],"class_list":{"0":"post-329343","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-au","9":"tag-australia","10":"tag-business","11":"tag-economy"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/329343","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=329343"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/329343\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/329344"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=329343"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=329343"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=329343"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}