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


Closer Look Needed On Housing Affordability Solutions



Closer Look Needed On Housing Affordability Solutions

The Labour Party's focus on housing unaffordability is a welcome move at a time of crisis, although root causes of the issue still need to be addressed in greater detail if the crisis is to be resolved, says Property Council New Zealand.

With the spotlight now firmly on how to make houses affordable for first home buyers, the Government and opposition need to look closely at the whole spectrum of issues and consider what can be done to address all the factors which push up the price of a new home, said Property Council’s chief executive, Connal Townsend. “This issue is not going to go away until it is adequately addressed from all sides of the unaffordability equation.

“Housing unaffordability is caused by a range of issues, especially the supply of land. There are questions to be answered on where and how greenfield and brownfield land is to be acquired, particularly in Auckland. Consenting fees, development contributions and other levies are also core contributors to the rising price of new houses, with costs often passed to the purchaser – effectively a first home buyer’s tax.

“Another issue is the ability to source finance for new developments, which has been particularly tight in recent years. Labour’s policy seeks to tackle this issue by proposing government-issued Home Ownership Bonds. However, we would expect property development companies to be involved in the construction process, as a balance is always needed between public and private development.

Property Council has long believed the built environment should be given greater recognition in the Resource Management Act. “Labour’s intention to introduce a National Policy Statement under the RMA to ensure planning rules and consenting decisions support affordable housing is a laudable move,” he said.

“With a policy such as this, it is important to consider all the costs. We note that Labour has given particular attention to the construction of apartment buildings. This type of property development typically costs $6,000 to $6,500 a square metre for a low to medium rise apartment. We would need to see greater detail on how Labour will achieve a maximum price of $300,000 for a new built home.

“Property Council looks forward to seeing Labour’s policy when it has been worked through in more detail when it considers levies, charges and red tape that contribute to the cost of building and buying a home.”


© Scoop Media

Business Headlines | Sci-Tech Headlines


Oceans: NOAA Declares Third Ever Global Coral Bleaching Event

As record ocean temperatures cause widespread coral bleaching across Hawaii, NOAA scientists confirm the same stressful conditions are expanding to the Caribbean and may last into the new year, prompting the declaration of the third global coral bleaching event ever on record. More>>

Scoop Business: A Decade Of Government Pre-Seed Investment

More publicly-funded science is being commercialised after a decade of government ‘pre-see’d investment, according to an independent review. More>>


Solid Energy: Plan To Shut Unprofitable Huntly East Mine

Solid Energy, the state-owned coal miner in voluntary administration, plans to shut down its unprofitable Huntly East mine and lay off 65 staff after deciding the site stands "no chance whatsoever" of finding a buyer. More>>


E Tū: Merger Creates NZ's Biggest Private Sector Union

E tū has been created by the merger of the Engineering, Printing and Manufacturing Union and Service and Food Workers’ Union. It represents more than 50,000 working New Zealanders in industries as diverse as aviation, construction, journalism, food manufacturing, mining and cleaning. More>>


Internet: NZ Govt Lifts Target Speeds For Rural Broadband

The government has lifted its expectations on faster broadband speeds for rural New Zealand as it targets increased spending on research and development in the country's information and communications technology sector, which it sees as a key driver for export growth. More>>


Banks: Westpac Keeps Core Government Transactions Contract

The local arm of Westpac Banking Corp has kept its contract with the New Zealand government to provide core transactions, but will have to share peripheral services with its rivals. More>>


Science Investment Plan: Universities Welcome Statement

Universities New Zealand has welcomed the National Statement of Science Investment released by the Government today... this is a critical document as it sets out the Government’s ten-year strategic direction that will guide future investment in New Zealand’s science system. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news