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

 

Auckland Housing Report Must Be Acted On

23 APRIL 2007

"CHRANZ MOTU Auckland Housing Report Must Be Acted On With Urgency"

The Centre for Housing Research Aotearoa New Zealand (CHRANZ) has released a 147 page Report prepared by Motu Economic and Public Policy Research (Motu) "Housing Supply in the Auckland Region 2000 - 2005". This comprehensive report clearly sets out the reasons for the artificial housing inflation within this urban market and provides sound and innovative solutions, in dealing with these problems.

The key issue is the artificial constraint on land supply. The CHRANZ Auckland Report found that over the decade to 2005, the median vacant section price across Territorial Local Authorities rose 108% in Manukau, 334% Auckland City, 329% Franklin and 315% within the Rodney District.

"This artificially created hyper inflation in land prices needs to be dealt with with urgency" said Hugh Pavletich, co author of the Annual Demographia International Housing Affordability Survey, adding "The CHRANZ Motu Report most importantly, provides sound, innovative and workable solutions to these problems. It is a great effort by all involved."

Wendell Cox of Demographia, co author of the Annual Demographia Survey and an international expert on urban issues, is of the view that the CHRANZ Report on the Auckland housing market, is one of the most significant reports on housing issues and will stimulate considerable international interest.

The internationally accepted standard for housing affordability is that median house prices should not exceeed three times median household incomes. The 2007 Demographia Survey found that Australia was (September 2006 data) 6.6 times, New Zealand 6.0, Ireland 5.7, United Kingdom 5.5. United States 3.7 and Canada 3.2 times household income.

Auckland was 6.9 times household incomes, with Christchurch 6.0 and Wellington 5.4.

"Unless something is done about land supply and associated issues urgently, Auckland house prices will likely hit nearly an appalling eight times household incomes by the end of this year, creating even worse hardship for people" said Hugh Pavletich.

Normal growing housing markets, such as the 41 identified within this years Demographia Survey, should move between 2.5 to 3.0 times household incomes through the building cycle. As the multiple increases. further housing construction is stimulated and as the demand and the Median Multiples moderate, construction should ease as well.

ENDS


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Superu Report: Land Regulation Drives Auckland House Prices

Land use regulation is responsible for up to 56 per cent of the cost of an average house in Auckland according to a new research report quantifying the impact of land use regulations, Finance Minister Steven Joyce says. More>>

ALSO:

Fletcher Whittled: Fletcher Dumps Adamson In Face Of Dissatisfaction

Fletcher Building has taken the unusual step of dumping its chief executive, Mark Adamson, as the company slashed its full-year earnings guidance and flagged an impairment against Australian assets. More>>

ALSO:

No More Dog Docking: New Animal Welfare Regulations Progressed

“These 46 regulations include stock transport, farm husbandry, companion and working animals, pigs, layer hens and the way animals are accounted for in research, testing and teaching.” More>>

ALSO:

Employment: Most Kiwifruit Contractors Breaking Law

A Labour Inspectorate operation targeting the kiwifruit industry in Bay of Plenty has found the majority of labour hire contractors are breaching their obligations as employers. More>>

ALSO:

'Work Experience': Welfare Group Opposes The Warehouse Workfare

“This programme is about exploiting unemployed youth, not teaching them skills. The government are subsidising the Warehouse in the name of reducing benefit dependency,” says Vanessa Cole, spokesperson for Auckland Action Against Poverty. More>>

ALSO:

Internet Taxes: Labour To Target $600M In Unpaid Taxes From Multinationals

The Labour Party would target multinationals operating in New Zealand to ensure they don't avoid paying tax if it wins power and is targeting $600 million over three years through a "diverted profits tax," says leader Andrew Little. More>>

ALSO: