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11 minute read
Reflections on Recession: Lessons from the Long Grind
Are we seeing more mortgagee sales?
Andrew Chambers
14 August 2025
Watch video here
https://www.nzherald.co.nz/nz/properties-abandoned-because-of-mortgagee-sales/LZBEGNZF6WC6CTPXDLRKKC4NUQ/
Andrew Chambers, our Tella CEO, recalls a moment from the late 1990s during the onset of the Asian financial crisis. A senior colleague remarked, “You don’t know what recession is—you weren’t in banking in ’87!” That comment stuck with him. Now, having weathered a recession roughly every decade since, Chambers has come to a key realization: while recessions are inevitable, their causes and consequences are never the same.
Drawing on the metaphor of tectonic shifts, he describes the current downturn as a slow-moving quake—less dramatic in the headlines, but deeply disruptive beneath the surface. Here are some of his observations:
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A Quiet but Deep Impact: Unlike the sharp shocks of past recessions, this one has unfolded gradually. Its slow burn has made it less newsworthy, yet it has significantly eroded household financial security.
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A New Banking Ethos: Today’s banks have evolved into more responsible corporate citizens. The absence of widespread mortgagee sales—a hallmark of past recessions—is a testament to this shift. Chambers commends the industry for this progress.
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Latecomers Hit Hardest: Those who entered the property market late are bearing the brunt of the downturn, facing devaluations of 10–20% that have wiped out their equity.
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Auckland vs. South Island: Auckland has felt the recession more acutely, due to inflated property prices and higher job losses. In contrast, South Islanders have weathered the storm relatively well.
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Infrastructure Neglect Exposed: The recession has highlighted decades of underinvestment in infrastructure. Chambers urges both central and local governments to learn from this and prioritize long-term resilience.
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Regretful Covid Spending: Many households spent freely during the pandemic—on renovations, vehicles, and other big-ticket items. Now, those decisions are proving burdensome.
Chambers shared these insights in a brief conversation with Ryan Bridge on Herald Now morning TV. His reflections invite readers to consider not just the economic data, but the human and structural stories behind it.