November 23rd, 2024
New Zealand's household net worth experienced a $10.3 billion decrease in the December 2022 quarter, according to Stats NZ's quarterly data published on Thursday.
The 0.5% decline follows three previous quarters of falling figures, culminating in an annual decrease of $176 billion, or 7.3%, since December 2021. As of December 2022, the total net worth of households stands at $2,251 billion.
The decline in household net worth can be attributed to a $12.3 billion or 1.0% drop in owner-occupied property values during the December quarter. Although property values also fell in the three preceding quarters, the rate of decline has slowed compared to the average of 1.8% per quarter throughout 2022.
However, the fall in property valuations has been partially offset by a $5.3 billion increase in financial assets. This is primarily due to a $3.6 billion rise in currency and deposits, alongside a $1.8 billion boost in insurance and pensions, according to Stats NZ.
Meanwhile, equity and investment fund shares remained relatively stable, falling by a mere $0.1 billion in contrast to the previous quarter's $14.9 billion decline.
The drop in net worth also resulted from a $3.2 billion or 1.1% rise in household debt, with household mortgages being the main driver. Throughout 2022, household debt grew at an average quarterly rate of 1.2%.