House prices 'blow to confidence' says Property Council
Are the high Auckland house prices highlighted by the latest Demographia survey a blow to confidence?
The Property Council’s chief executive, Connal Townsend, says they are.
But is it shared by house buyers in Auckland?
Real Estate Institute figures for December show 2225 buyers in Auckland acquired homes, slightly lower than the November figure of 2514 – but the median price at $765,000 was higher than November’s $770,00.
Mr Townsend says his members are extremely concerned about “the escalating housing problem which will create devastating economic and social consequences for New Zealanders.”
“Putting Auckland as a less affordable place to buy houses than New York, London and Tokyo really demonstrates just how terribly we are doing.
“It’s really quite simple. Auckland is creating ‘generation rent’ where young people cannot afford to buy their own home. This will have substantial implications for Auckland’s economic and social fabric.
“It also means young professionals and a skilled workforce cannot live here. Businesses will suffer, the community will suffer and Auckland, which is suffering already, will plummet in its desirability.
“We are already seeing young people move from Auckland to other centres to realise their Kiwi dream.
“If we are to achieve being the most liveable city, I would say to the central government and Auckland Council, we need to be doing more. A piecemeal approach won’t solve Auckland’s housing unaffordability. We need bold and visionary reform.
“We have several reviews that are under way in relation the Resource Management Act, and it’s critical that we get these right.
“Then, we must review our other planning laws which manage infrastructure and transport and ensure that they all mesh together cohesively. Otherwise, what has now become an intergenerational crisis for New Zealanders will have dire consequences on Auckland’s and New Zealand’s society and economy.”