PM Luxon Calls for Modest and Steady Rise in House Prices

Prime Minister Christopher Luxon has said he wants to see “modest” and “consistent” increases in house prices, rather than unsustainable spikes. He stressed that the government’s focus is on making housing more affordable, with wage growth outpacing house price inflation.
Despite recent interest rate cuts by the Reserve Bank, property prices remain subdued across most of New Zealand. Only Christchurch and Queenstown have shown modest growth, while Wellington and Auckland recorded sharp declines. Luxon described this as a correction from the 2022 boom, when house prices surged more than 30% in a single year.
Luxon reiterated that economic growth should be driven by productivity rather than speculative housing bubbles. He also signaled that a decision on the foreign buyers ban will be announced soon. The coalition remains divided, with National supporting limited foreign investment under a tax framework, while NZ First favors keeping the full ban.
The prime minister maintained that any changes to the foreign buyers rule will not trigger another surge in property values, insisting the government is committed to stability in the housing market.