Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Grossly Expensive Lots Cause Of NZ Housing Slump

Grossly Expensive Lots / Sections Cause Of New Zealnd Housing Construction Slump – Hugh Pavletich

In March 2007 there were 1077 lots sold for a median price of $172,000 and in March 2008 there were 430 lots sold for a median price of $180,000 (refer REINZ Section / Lot Tables below) – clearly illustrating that the lack of reasonably priced fringe urban lots, is the major reason for the slump in housing construction in New Zealand.

The residential construction sector and the housing sector generally - will not recover until there is sufficient land made available – so that new starter housing on the fringes can be put in place, at prudent development ratios of 20% for the lot and 80% for the actual house construction.

Currently the important development ratios are grossly distorted, as outlined within Scoop: Urban Planning Degrades Housing Productivity, where prospective new home buyers are required to pay excessive pricing for lots.

This irresponsible behaviour by Local Authorities has seriously degraded the pricing and performance of the New Zealand’s residential construction sector as well.

There are only two ways housing can become affordable in New Zealand – either by opening up fringe land supply so that affordable lots can be supplied – OR – by the hugely destructive process of significantly increased migration to Australia.

There are no other options.



Statistics NZ March 08 Construction Consents Report


Real Estate Institute of New Zealand - March 2008 Report

Section / Lot Price Volume / Price Trends 1992 - Mar 08 REINZ

NZ Migration Report March 2008 Statistics NZ

NZ Migration Tables March 2008 Statistics NZ


Housing sector feels pinch - - Get the latest local, national and world news from Christchurch's daily newspaper

WRAPUP 1-Weak NZ building, confidence reinforce rate cut talk | Reuters

NZ new dwelling consent numbers tumble - Breaking News - Business - Breaking News

NZ dollar slips on weak trade data, bonds firm


© Scoop Media

Business Headlines | Sci-Tech Headlines


Snail-ier Mail: NZ Post To Ditch FastPost

New Zealand Post customers will see a change to how they can send priority mail from 1 January 2018. The FastPost service will no longer be available from this date. More>>


Property Institute: English Backs Of Debt To Income Plan

Property Institute of New Zealand Chief Executive Ashley Church is applauding today’s decision, by Prime Minister Bill English, to take Debt-to-income ratios off the table as a tool available to the Reserve Bank. More>>


Divesting: NZ Super Fund Shifts Passive Equities To Low-Carbon

The NZ$35 billion NZ Super Fund’s NZ$14 billion global passive equity portfolio, 40% of the overall Fund, is now low-carbon, the Guardians of New Zealand Superannuation announced today. More>>


Split Decision - Appeal Planned: EPA Allows Taranaki Bight Seabed Mine

The Decision-making Committee, appointed by the Board of the Environmental Protection Authority to decide a marine consent application by Trans-Tasman Resources Ltd, has granted consent, subject to conditions, for the company to mine iron sands off the South Taranaki Bight. More>>


New Report: Waitākere Kauri - Look After It, Or Lose It

With no cure for kauri dieback disease and treatment options still being trialled, the Auckland region faces a very real threat – take urgent action in the Waitākere Ranges or risk losing kauri from our forests altogether. More>>