NZ only has a population of 5.25 million and has some of the most expensive real estate of any country. Coupled with low immigration (no one is walking across a border or sailing a dingy in to NZ). Low housing construction. This has lead to a huge property bubble over the last 20 years, where most house prices in Auckland start at the NZD$1 million where 1.5 million people live, 28% of the pop. Large amounts of high net worth overseas investors, especially from China and other asian countries have led to a house price increases especially in Akl. This has led to a knock on effect in other NZ cities as cashed up Aucklanders have left for cheaper properties elsewhere and lifted those high prices up as well.