Quake report likely to spark building cost hike

Building costs could increase if the government toughens up on building regulations.

Prime Minister John Key says the final report from the Royal Commission of Inquiry into the Canterbury earthquakes contains 189 recommendations which have “potentially wide-ranging ramifications for the entire country, not just Canterbury”.

Mr Key expects to first present the reports to the families of the 115 people who died in the CTV buildings, before publicly releasing the reports, with a government response early next year.

He says there are likely to be a number of building changes as a result of the report with potential cost implications.

He is confident recently announced housing affordability plans will improve access to home ownership and stop runaway property prices.

“It’s not the government’s intention to lower property prices – that would undermine the value of everyone’s property and probably wouldn’t be welcomed by the bulk of New Zealanders, certainly not by home owners.

"The government doesn’t want to see rapidly escalating property prices.”

He believes the government’s plan to release more land, modify the Resource Management Act and reform the building industry will address some of the issues around “rampant price increases”.

Mr Key says the problem is largely an Auckland one, but he has rejected Labour leader David Shearer’s plan to build 100,000 Auckland homes for $300,000 each.

The plan is based on a section price of between $50,000 and $80,000.

“If they’re going to do it in Auckland, they’re going to do it on a cloud, because you’re not going to buy a section for $50,000 in Auckland.”


1 · Got a question about this story? Leave it in Comments & Questions below.

This article is tagged with the following keywords. Find out more about MyNBR Tags

1 Comment & Question

Commenter icon key: Subscriber Verified

Well David, building a new house every hour on the hour 24/7 for 10 years and then being 12,400 short may have seemed a good idea at the time. But making them affordable to withstand earthquake and disaster? Get real! Also ask how force building in the UK has gone for them. Thousands of houses flooded as a direct result of the Blair scheme.

  • 0
  • 0

Post New comment or question

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

NZ Market Snapshot


Sym Price Change
USD 0.7273 -0.0016 -0.22%
AUD 0.9139 -0.0015 -0.16%
EUR 0.6099 -0.0014 -0.23%
GBP 0.5376 -0.0021 -0.39%
HKD 5.6797 -0.0122 -0.21%
JPY 81.6730 -0.2610 -0.32%


Commodity Price Change Time
Gold Index 1293.3 6.130 2017-09-22T00:
Oil Brent 56.4 0.420 2017-09-22T00:
Oil Nymex 50.7 0.110 2017-09-22T00:
Silver Index 16.9 -0.034 2017-09-22T00:


Symbol Open High Last %
NZX 50 7795.4 7814.8 7795.4 0.25%
NASDAQ 6401.4 6429.5 6422.7 0.07%
DAX 12569.7 12646.6 12600.0 -0.06%
DJI 22334.1 22364.3 22359.2 -0.04%
FTSE 7263.9 7320.3 7263.9 0.64%
HKSE 27949.8 27960.9 28110.3 -0.82%
NI225 20413.6 20417.1 20347.5 -0.25%
ASX 5655.4 5688.2 5655.4 0.47%