This reverses a declining trend since March 2022
In a reversal of the declining trend observed since the March 2022 quarter, household net worth in New Zealand has experienced a 0.2% uptick, equivalent to $5.3 billion, in the September quarter, Stats NZ reported.
Net worth, calculated as the value of all assets owned by households minus their liabilities, has been buoyed by a surge in property values for both homeowners and landlords, said Ruvani Ratnayake (pictured above), national accounts industry and production senior manager at Stats NZ.
The positive development contrasts with the preceding six quarters, which saw an average quarterly decline in household net worth at 1.4%, totaling $33.6bn.
Breaking down the components contributing to the rise, household non-financial assets, encompassing buildings and land, increased by $2.3bn during this quarter, marking a rebound from the previous six quarters of decline.
Household financial assets, meanwhile, witnessed growth, rising by $5.3bn after facing contractions in the two preceding quarters. The upswing was primarily driven by an increase of $4.2bn in currency and deposits, coupled with a $2.7bn rise in equity. Household equity, factoring in the value of rental properties minus associated mortgages, contributed significantly to this positive trend.
Despite the overall uptrend in household assets, a $1.6bn decline in insurance and pensions was recorded for this quarter, with the last instance of pension decrease observed in the June 2022 quarter.
While the quarter experienced an increase in total household assets, it was accompanied by a rise in loan liabilities, which grew by $2.3bn, primarily attributed to the surge in residential mortgages, Stats NZ reported.
To compare the latest figures with the same period last year, click here.
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