NZ Property Market "Too Big to Fail"

I was just listening to Bernard Hickey from interest.co.nz on the National Programme while getting across town in the car. It was a very interesting discussion forum between Brian Edwards, Bernard Hickey and Jim Mora on the panel. Hot topic of the day being interest rates for borrowing and whether the panel could see them staying where they are and is there a bubble in the property market.

Bernard Hickey believes there are parts of New Zealand, namely central Auckland and parts of Christchurch that are experiencing a growth bubble. When prompted as to where Kiwis should put their savings as a safe bet for good growth, I was interested to hear that Bernard Hickey believes that property is still a good bet due to no capital gains tax and that he believes that the New Zealand property market is "too big to fail".

There are so many people and banks involved in the New Zealand property market that the government cannot afford to let it fail. Great to hear I say.