Westpac New Zealand Economic and Sustainability Strategy Update

Housing market and Government policy (cont.) New Zealand dwelling prices by region Index = 1000 in 2007 2700 Index = 1000 in 2007 Dwelling prices % change Last 3 mths 2500 Auckland Region Pop'n (to Mar-21) Last 12 mths (Mar-21) Last 5 years (to Mar-21) 2400 2300 2100 -Canterbury Auckland 1.7m Up 7.1% Up 22.5% Up 39.2% 1900 1900 -Wellington 1700 Wellington 0.5m Up 9.5% Up 31.2% Up 104.7% 1500 Other regions 1400 1300 Canterbury 0.6m Up 7.7% Up 20.3% Up 30.1% 1100 900 900 Nationwide 5.1m 2007 2009 Up 8.5% Up 24.0% Up 58.6% 2011 2013 2015 2017 2019 2021 Source: Stats NZ, Westpac Source: REINZ, Westpac Population growth and net migration (rolling annual totals) Household debt statistics 20 200 Index Index 4000 4000 Current forecast 3500 3500 ------ Forecast from February 2021 15 % of household income spent on debt servicing (left axis) Household debt as a % of household disposable income (right axis) 175 3000 3000 10 2500 Westpac 150 2500 forecasts 2000 2000 5 125 1500 1500 1000 1000 0 100 2010 2012 2014 2016 2018 2020 2022 2024 2026 Source: CoreLogic, Westpac 2000 2002 Source: RBNZ 2004 2006 2008 2010 2012 2014 2016 2018 2020 30

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