House prices will stay firm: Council

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Auckland Council says it expects house prices to remain firm, with a million new residents expected over the next 30 years.

Thursday, November 1st 2012, 12:00AM 1 Comment

by The Landlord

It says it is taking action to boost supply to make housing more affordable and accessible.

Geoff Cooper, Auckland Council’s chief economist, said Auckland house prices had risen 124% since 2000, while measures of GDP per capita grew by only 47% over the same period.

“Some of the acceleration in Auckland house prices we’ve seen, especially during the past decade, is a symptom of the success of our region,” he said. “People are naturally predisposed to locate themselves close to infrastructure, jobs and other amenities. Auckland has the most jobs and the highest paying jobs in the country.”

Over the past 12 months, house prices rose 8.4%.

Auckland Council wants  to boost housing supply across the region through its Auckland Plan, a 30-year prospectus for the region. The plan will see the building of 60% 70% of new housing requirements in greenfield and brownfield developments within existing urban boundaries, and 30% to 40% per cent in satellite areas such as Warkworth and Pukekohe.

Auckland’s Mayor says the region must get the housing solutions right so the region can accommodate the expected future population growth.

“The key is building new houses where there is existing infrastructure, near main transport links and closer to where people work,” says Len Brown.

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