Retirement village operators

[Baa_Baa]

Good news for those it applies to, but this is something completely separate to the pay parity funding the government announced the other day. This only applies to RNs and Health Care Assistants working in DHB situations. It doesn't apply to anyone working in the Aged Care Sector. I have emailed the union, for clarification, but I'm 99.9% sure it will not benefit this sector. Sadly.

Did you get a reply to your email?

[Baa_Baa]

Davidson said national average values were already down about 10 percent from the peak, with the potential for another 10 percent drop in 2023.

"For context, the GFC [Global Financial Crisis] saw a final peak to trough fall of 10 percent," he said.

"If this does eventuate, it's important to remember prices will still be 15-to-20 percent above pre-Covid levels."

[Relaxed]

"If this does eventuate, it's important to remember prices will still be 15-to-20 percent above pre-Covid levels."

it is interesting how these things are always stated like they are special.
But assuming that prices rise at a linear rate, which they obviously don't, then 20% above pre covid is less than 7% compounding over 3 years.

[Bjauck]

Davidson said national average values were already down about 10 percent from the peak, with the potential for another 10 percent drop in 2023.

"For context, the GFC [Global Financial Crisis] saw a final peak to trough fall of 10 percent," he said.

"If this does eventuate, it's important to remember prices will still be 15-to-20 percent above pre-Covid levels."

The NZX50c capital index is about 18% below the pre-covid peak already. So much of the Covid money creation ended up further uselessly inflating house prices. What did the government expect to happen in NZ, where over the decades we have been divesting from productive companies to invest in inflating the price of residential land. It is substantially the result of government policy.

[Baa_Baa]

The NZX50c capital index is about 18% below the pre-covid peak already.

11.8% below pre-Covid peak.

[justakiwi]

Well that was good timing! Was just about to reply to you when an email arrived from them. This is the response:

Thank you for your email. You are correct that this determination by the ERA only directly applies to staff working at the (former) DHBs. How this will affect the earlier proposed parity for Age Care and Disability Care has yet to be clarified.

That live link doesn’t work, even for me as a member, but will take a closer look later when I have a chance.

Did you get a reply to your email?

[Bjauck]

11.8% below pre-Covid peak.

Thanks - My error. It still seems a big variation between housing assets and share assets in price performance from their pre-covid peaks.

[Bjauck]

it is interesting how these things are always stated like they are special.
But assuming that prices rise at a linear rate, which they obviously don't, then 20% above pre covid is less than 7% compounding over 3 years.

7% pa over those particular three years seems incredible considering lockdowns, cost of living increases and interest rate increases.

[Baa_Baa]

Thanks - My error. It still seems a big variation between housing assets and share assets in price performance from their pre-covid peaks.

A massive difference, NZ50C down 11.8% from pre-Covid peak, HPI up about 23% from pre-Covid peak.

[Relaxed]

7% pa over those particular three years seems incredible considering lockdowns, cost of living increases and interest rate increases.

True indeed. but it's also around the long term average for house price increases so it isn't adding to extraordinary growth in any way.
as an aside
I recently told someone that the average house price will eventually be $5 million, they said that's impossible, I said it's mathematics. 7% compounding growth will get there eventually