Although they do not have the high fixed costs of a branch network, they do have to invest heavily in building up their reputation. It is interesting to note that the current market share held by such banks is still very small.
A major supply-side milestone will be the outcome of the Auckland Unitary Plan (AUP) Independent Hearings Panel, which is expected to make final recommendations to the Auckland Council by 22 July. The Panel’s recommendations and the Auckland Council’s response to those recommendations will be crucial in setting the future path towards reducing the housing market imbalance.