Economists say Auckland housing market could suffer same price falls as some big Australian cities

Auckland has seen a massive growth in house prices, but leading economists say prices could fall like those in Sydney and Melbourne.

"The risk has arrived on the horizon and that would be contagion from a more marked slow in the Australian market than otherwise expected," ANZ chief economist Sharon Zollner told TVNZ1 Q+A's Corin Dann.

The Reserve Bank Governor, Adrian Orr says New Zealand's housing market shares common ground with Australia because it has benefited form the same global investment trends of recent years. 

He says it's possible prices in New Zealand could fall too.

"You could see a similar fall, that's not in our projections, but it's in the realm of possibility, likewise you could see a rise," he said.

In a forecast this week the Reserve Bank predicted house prices across the country to stay positive at around two to three per cent per year for the next few years.

 But Mr Orr says even if prices fall, there's little cause for concern.

"House prices relative to income is highly elevated and there is an enormous amount of wealth captured in the equity of homes they own, now a house price decline does not mean a housing market crisis, far from it."

One factor likely to help underpin house prices is low interest rates with Mr Orr surprising some in the market this week by pledging to keep rates low until 2020.

In addition, Mr Orr countered the gloomy view of some in the business sector by delivering an upbeat assessment on the economy.

"The signs are very positive, you have a lower exchange rate so we are earning more for our off-shore efforts, the world growth is still very strong, the government is out spending and investing."

Mr Orr says given all those factors now is a good time for businesses to invest.

The Reserve Bank Governor told Q+A’s Corin Dann, even if prices do start to turn, it’s not something that should cause major concern. Source: 1 NEWS

Three teenage boys arrested after aggravated robbery of Napier petrol station

Three 17-year-old boys have been arrested following the robbery of a Napier petrol station yesterday morning.

According to Police, at around 6am yesterday, three armed suspects entered the Z Petrol Station on Kennedy Road in Napier, demanded goods from an attendant before fleeing the scene with the items.

The attendant was left shaken from the incident but was uninjured.

A black Nike sports bag containing items of interest to police is believed to have been dumped somewhere between the petrol station and suburb of Marewa. 

Members of the public who may have located the bag or have any relevant information have been advised to contact police.

Two of the teenagers will appear in Hastings District Court tomorrow, while a third will appear in the same court next week facing one charge of aggravated robbery.

Source: 1 NEWS


Most read: 'Can I be a good politician while also being a good mum?' Jacinda Ardern opens up about her balancing act

Less than a year ago, Jacinda Ardern took on the weight of leading a country and the global fame that came with it.

Now for motherhood.

"I'm seven weeks in. I don't think I can claim to be the knower of all things and a baby whisperer. I'm a new mum and I imagine I'm going to learn a lot of things along the way," New Zealand's Prime Minister told AAP at the end of her first week back in parliament after six weeks of maternity leave.

"I don't feel like I should be a poster child for anything."

It's fair to say it's been a busy week back in the captain's chair, one laden with a flurry of government announcements, welcomes back, and fierce debate about the state of the economy.

Meanwhile, Ardern's daughter, Neve, has settled into the Prime Minister's floor of the Beehive government offices.

"(It's) top of my mind: can I be a good politician while also being a good mum? And I believe it's possible, but ask me in three years," Ardern says.

The Prime Minister says Neve will go to a public school. Source: Breakfast

"I, just at the end of every day, have to feel like I did my best for both."

That said, the 38-year-old insists she's got it easier than many new parents and that the logistics have been straight-forward so far.

Partner Clarke Gayford is taking on the role of full-time dad, space has been made for Neve and everything she needs, and the Prime Minister has a degree of flexibility in her scheduele - breaking up her days into three-hour slots to allow for feeding.

"Every parent when they're going back into the workplace makes a bit of an adjustment, and I'll be no different. But in lots of ways I'm also lucky," Ardern says.

"Not everyone has that. I'm in a pretty good position to make this work."

So is there now pressure to set an example for working families?

"I feel that pressure on everything," she replies.

The list that follows includes: proving a complex coalition government can work, living up to the expectations of the progressive movement she leads, doing her best for her country and, now, being the best mother she can be.

The prime minister has landed in Wellington to get back to work after her six-week maternity leave but first she’ll have to make some changes to Premier House. Source: 1 NEWS

"So, you know, pick your guilt," she laughs.

In June, Ardern became the first elected world leader to take maternity leave.

Neve accompanied her mother to a major government announcement on Friday.

The family will take its first overseas trip together in September to the United Nations in New York.

Jessica Mutch interviewed the PM yesterday as she returned to work after six weeks maternity leave. Source: Breakfast

Ms Ardern is back on the job as Prime Minister after six weeks of maternity leave. Source: 1 NEWS

The Prime Minister was met by cheers and a speech by Winston Peters. Source: 1 NEWS