tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Tuesday, March 19th, 10:57AM

News

rss
Latest Headlines

Govt to build more houses in Akld?

Auckland’s private housing market looks likely to be the beneficiary of a ramped up government building programme – if signals from the Finance Minister come to fruition.

Monday, October 10th 2016, 11:52AM

by Miriam Bell

Finance Minister Bill English

Finance Minister Bill English has told media the government will be increasing the number of houses it builds, in line with what was possible under the Unitary Plan.

He said the Unitary Plan created room for up to 69,000 houses on Housing New Zealand (HNZ) and which currently has 30,000 houses.

While that capacity allowed for the renewal of housing stock, it would also generate an extra 30,000 houses which could be sold on the private sector market, he said.

In the past, the government has been unwilling to commit to such an intervention in the private market.

However, it seems the scale of the controversy over Auckland’s shortage and lack of affordability might be prompting a government re-think in the run-up to next year’s election.

Housing is an issue the government is considered to be vulnerable on and both Labour and the Green Party have long been touting the need for big government-led affordable house building programmes.

The Finance Minister’s comments seem to have been foreshadowed by the government’s announcement, in September, that it would be redeveloping 300 existing HNZ properties into about 1200 new homes in Northcote.

Of the newly developed Northcote properties, HNZ homes will increase from 300 to 400, while a further 600-800 properties will be sold as a mix of affordable and market housing.

At the time, English said the development was the latest example of the government’s work to develop its own land to accelerate the supply of new houses into the Auckland market.

Building and Housing Minister Nick Smith said the Northcote development was the first of a number of large scale HNZ projects which will now be possible under the new Unitary Plan rules.

Meanwhile, Labour and Green spokespeople were keen on further government intervention in the housing market, but sceptical when it came to details.

Green Party co-leader Metiria Turei said English should release the details of the new houses he says will be built by the government, including how affordable they will be.

“When you look at what they did in places like Tamaki and Glen Innes, the government sold state homes and replaced them with townhouses that cost over $1 million to buy.

“English needs to explain how affordable these homes will actually be, and how he plans to stop property speculators snapping them up.

“Affordable means three to four times a household’s income and until the government accepts that, anything they do about housing affordability won’t have the substance to make an actual difference.”

However, any injection of additional supply into Auckland’s strapped market is generally welcomed.

Estimates of the city’s supply shortage vary from 20,000 to 50,000 and it is generally agreed that the city should be building around 13,000 – 14,000 dwellings per annum to keep pace with demand.

 

« Shifting investor activityFree Investment Property Showcase Events: Auckland, Wellington and Christchurch »

Special Offers

Comments from our readers

No comments yet

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
Subscribe Now

Mortgage Rates Newsletter

Daily Weekly

Previous News
Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA - Back My Build 6.19 - - -
AIA - Go Home Loans 8.74 7.24 6.79 6.65
ANZ 8.64 7.84 7.39 7.25
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 7.24 6.79 6.65
ASB Bank 8.64 7.24 6.79 6.65
ASB Better Homes Top Up - - - 1.00
Avanti Finance 9.15 - - -
Basecorp Finance 9.60 - - -
Bluestone 9.24 - - -
Lender Flt 1yr 2yr 3yr
BNZ - Classic - 7.24 6.79 6.65
BNZ - Green Home Loan top-ups - - - 1.00
BNZ - Mortgage One 8.69 - - -
BNZ - Rapid Repay 8.69 - - -
BNZ - Std, FlyBuys 8.69 7.84 7.39 7.25
BNZ - TotalMoney 8.69 - - -
CFML Loans 9.45 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - 7.04 - -
Co-operative Bank - Owner Occ 8.40 7.24 ▼6.79 ▼6.65
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Standard 8.40 7.74 ▼7.29 ▼7.15
Credit Union Auckland 7.70 - - -
First Credit Union Special - 7.45 7.35 -
First Credit Union Standard 8.50 7.99 7.85 -
Heartland Bank - Online 7.99 6.69 6.45 6.19
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 8.90 7.60 7.40 -
HSBC Premier 8.59 - - -
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 7.85 7.05 ▼6.75 6.59
Lender Flt 1yr 2yr 3yr
Kainga Ora 8.64 7.79 ▼7.39 ▼7.25
Kainga Ora - First Home Buyer Special - - - -
Kiwibank 8.50 8.25 7.79 7.55
Kiwibank - Offset 8.50 - - -
Kiwibank Special - 7.25 6.79 6.65
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 9.00 7.75 7.35 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
Resimac - LVR < 80% 8.84 8.30 7.89 7.69
Lender Flt 1yr 2yr 3yr
Resimac - LVR < 90% 9.84 9.30 8.89 8.69
Resimac - Specialist Clear (Alt Doc) - - 8.99 -
Resimac - Specialist Clear (Full Doc) - - 9.49 -
SBS Bank 8.74 7.84 7.45 7.25
SBS Bank Special - 7.24 6.85 6.65
SBS Construction lending for FHB - - - -
SBS FirstHome Combo 6.19 6.74 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.95 - - -
Select Home Loans 9.24 - - -
TSB Bank 9.44 8.04 7.55 7.45
Lender Flt 1yr 2yr 3yr
TSB Special 8.64 7.24 6.75 6.65
Unity 8.64 6.99 ▼6.79 -
Unity First Home Buyer special - - 6.45 -
Wairarapa Building Society 8.60 7.15 6.85 -
Westpac 8.64 7.89 7.49 7.25
Westpac Choices Everyday 8.74 - - -
Westpac Offset 8.64 - - -
Westpac Special - 7.29 6.89 6.65
Median 8.64 7.29 7.32 6.65

Last updated: 14 March 2024 9:32am

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox  |  Disclaimer
 
Site by Web Developer and eyelovedesign.com