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

MEDIA RELEASE

19.11.2012

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.”


END.

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Gareth Morgan: The Government’s Fresh Water Policy – Revisited

Fresh water quality is the latest area to be in the sights of Gareth Morgan and his research organisation The Morgan Foundation... They found that the fresh water policy was a bit murkier than the Environment Minister let on. More>>

ALSO:

Interest Rates: RBNZ Hikes OCR To 3.5%, ‘Period Of Assessment’ Now Needed

Reserve Bank governor Graeme Wheeler raised the official cash rate as expected, while signalling a pause in rate hikes to assess the impact of moves so far this year. The kiwi dollar sank after Wheeler said its strength was “unjustified” and that the currency could have “a significant fall.” More>>

ALSO:

Fonterra: Canpac Site 'Resize' To Focus More On Paediatrics

Fonterra is looking at realigning its packing operations at Canpac, in the Waikato, to focus more on paediatric nutritionals... The proposed changes could mean around 110 roles may not be required at the site which currently employs 330. More>>

ALSO:

Scoop Business: Postie Plus Brand Gets 2nd Chance With Well-Funded Pepkor

The Postie Plus brand is getting a new lease of life after South Africa’s Pepkor bought the failed retailer’s assets out of administration and said it will use its purchasing power to reduce costs of stock and fatten margins. More>>

ALSO:

Warming: Warming Signs From State Of Climate Report

Climate data from air, land, sea and ice in 2013 'reflect trends of a warming planet' -- says the latest State of the Climate report, launched by U.S. and New Zealand scientists. More>>

ALSO:

Scoop Business: Embrace Falling Home Affordability, Says NZIER

Despair over the inability to afford a house is misplaced and should be embraced as an opportunity to invest in more wealth-creating activity, says the principal economist at the New Zealand Institute of Economic Research, Shamubeel Eaqub. More>>

Productivity Commission: NZ Regulation Not Keeping Pace

New Zealand regulators often have to work with out-of-date legislation, quality checks are under strain, and regulatory workers need better training and development. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news