NZ housing market most at risk of bust, Goldman warns

Wellington

NEW Zealand's housing market is the most over-valued among the so-called G-10 economies and the most at risk of a correction, according to Goldman Sachs.

In research published this week, the investment bank said there is about a 40 per cent chance of a housing "bust" in New Zealand over the next two years, which it defines as house prices falling 5 per cent or more after adjustment for inflation.