Auckland housing a "ponzi scheme" says economist
Auckland’s inflated house prices are spreading to other parts of the country according to economist Shamubeel Eaqub.
Mr Eaqub joined Paul Henry to talk about whether the Government’s new regulations have had an impact on making Auckland more affordable.
He calls the city’s housing market “the ultimate Ponzi scheme”, because the houses which are selling are being sold amongst those who already own houses.
Six months ago the Government introduced new rules which require foreign buyers to register with the IRD.
These numbers show that about 18 percent of the city’s buyers are from overseas.