people said it was international buyers, offshore criminals etc that was pushing prices
but now non residents are banned and still it's shot up.
really demand >>>>> supply
and investors have nowhere to put their money?
Its supply, its not there, hasnt been for a long time. Unless you build 80,000 houses next week the core problem remains. You will find that while house ticket prices have risen, one thing hasnt in regards to homeownership, mortgage payments. Clearly plenty are working around the higher deposit = Mum and Dad, Kiwisaver. You could say that affordability probably hasnt changed a lot thanks to interest rates. I know a guy who has no money, no deposit, he bought a tidy wee place, thats a demand that would never arise = Kiwisaver meant that he joined the list of people who represent demand. Now we have thousands of ex pats arriving home, plenty of those wont be backpackers on OE they will be well incomed expats.
IMHO house prices are normal given all these factors.
Investors. Deposits earn practically nothing. Shares are an option, but with Covid, plenty of uncertainty. Pop it into a house? Obviously, can't blame them.