Council slams house prices
Auckland house prices have been described as "madness" by the Property Council.
Thursday, January 15th 2015, 12:00AM
by The Landlord
Chief executive Connal Townsend said prices would continue to be outrageously high if Auckland Council did not take the supply shortage seriously.
He said the proposed Auckland Unitary Plan had a "mile-long" list of restrictions on development.
Townsend said the plan made it hard for developers to provide enough homes to meet demand.
"We've got houses more expensive than LA and London. How is this possible? A dump in Auckland's Point Chevalier demands $1 million, which gets you a mansion in Beverly Hills in the USA. We've reached the point of madness."
He said the proposed plan had failed to consider the economic feasibility of projects, forcing developers to push costs to the consumer. "Add the housing shortage to the mix and there will be a generation of Kiwis who will never own or live in their own homes."
He cited a requirement for developers to deliver universally-accessible homes as an example of an unrealistic rule in the plan. "With land prices sky rocketing, not only does the cumulative impact of this hinder higher density development and increasing housing supply, but it stifles efforts to provide affordable housing in the face of soaring demand."
Property Council has also submitted on the Productivity Commission’s inquiry into land supply, reiterating the importance of making land available for residential houses.
"It is time council officials and local politicians stopped ignoring these issues which lead to disproportionate and often conflicting requirements on developers, in turn making houses too expensive for the average kiwi family. A legislative and culture change is desperately needed to address these historically problematic issues once and for all."
| « Mixed year but outlook bright | No sign of December slowdown: REINZ » |
Special Offers
Comments from our readers
No comments yet
Sign In to add your comment
|
|
Printable version |
|
Email to a friend |
