The impact of the Middle East war on NZ property
Many of you may have seen the headlines about the conflict in the Middle East and rising oil prices. A few clients have asked how this could impact the New Zealand property market, so here are our early thoughts.
In the short term, the most likely effects are:
Higher oil prices, which can push up inflation.
More expensive international travel, due to higher fuel costs.
Higher costs of goods, as global shipping and supply chains become more expensive.
At this stage, economists don’t expect a direct impact on house prices or mortgage rates in New Zealand.
However, there is another angle worth considering. During periods of global uncertainty, countries like New Zealand are often viewed as relatively stable and safe places to live and invest.
The question is: could that safe-haven effect support demand for property here?
It’s too early to say, but it will be interesting to see how this develops over the coming months.
