Bill English announced his new cabinet lineup earlier this week.
Notable changes include moving Judith Collins from Minister of Police to Minister of Revenue and promoting:
- Simon Bridges to Minister for Economic Development.
- Amy Adams to number 6 on the party list. She took on Minister for Social Housing and Minister for Housing New Zealand.
Michael Woodhouse continues to look after immigration and Dr Nick Smith held onto his Minister of Building and Construction portfolio.
As expected, Steven Joyce was promoted to Minister of Finance, which was previously held by Bill English.
What does Bill’s cabinet mean? It means National’s policies going into the 2017 election is going to be more or less as those under John Key’s.
As mentioned in a previous post, if you are speculating or investing in property, you should be aware of the investment environment.
Particularly, immigration is a major influence of demand. Michael Woodhouse’s immigration policies are unlikely to change drastically. He may fine tune some policies but overall immigration to New Zealand is likely to continue. This will continue to be have a positive affect on house prices.
Since Dr Nick Smith held onto his Minister of Building and Construction portfolio, there is unlikely to be major new supply of housing. Labour opposition party has been constantly pushing for more affordable housing. This is one thing that Dr Nick Smith hasn’t quite achieved yet and it does not appear likely he will achieve this goal. Large increases in housing supply tends to push down prices. This hasn’t happened just yet. At the moment, we are seeing more apartment projects being cancelled (St James developer recently announced the project was being cancelled. This is in addition to the Flo apartments
Finance is an important factor which affects both demand and supply. You have to consider whether banks are laxing or restricting lending. RBNZ has a key influence on the banks’ lending policies. RBNZ current position makes it harder for new borrowers to get finance but those who have accumulated substantial equity won’t be impacted. On the other hand, the developers of cancelled apartment projects all cited that raising finance was a factor which caused them to cancel projects.
Lastly. have a very Merry Christmas and Happy New Year!