Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 


Auckland House Prices Reach New High

Auckland House Prices Reach New High
 
News that the average house sale price in Auckland has topped $700,000, according to Barfoot & Thompson for the month of December 2013 comes as no surprise to Affordable Auckland Leader Stephen Berry. “There has been no change to the conditions which are distorting the housing market; therefore there will be no change in how it behaves. The bubble will continue to expand until increased interest rates in a few years’ time make it pop, again.”
 
Berry says, “The fundamentals which are fuelling to continued increase in house prices are the same ones that that started the new bubble. Regulations instituted by Auckland Council dictating land use and limits on urban expansion are the primary reason for the housing bubble.. Basic economics has not changed since the 2013 elections. When supply is artificially restricted, demand does not reduce and price goes up.”
 
Lending restrictions introduced by the unelected Reserve Bank have clearly had no positive effect on house prices. “They’ve had no effect on speculator participation in the market; rather they’ve simply shut out the vulnerable first home buyer who needs to six figured deposit just to get a mortgage. If anything, the LVR restrictions have worsened the acceleration of price inflation by reducing construction of new homes; another artificial restriction on supply!”
 
Mr. Berry says the solutions to the housing crisis are very simple and can be found in any Year 11 Economics textbook. “Remove the limits on supply! Abolish the urban limit and let property owners decide how their property is developed, not economically illiterate politicians and bureaucrats in the town hall.”
 
Stephen Berry was Affordable Auckland’s candidate for Mayor in the 2013 elections, finishing in third place with 4%. He has already confirmed that he will stand again when Len Brown inevitably resigns.

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

PARLIAMENT TODAY:

Royals: The Prince Of Wales And Duchess Of Cornwall To Visit

Prime Minister John Key welcomes today’s announcement that the Prince of Wales and The Duchess of Cornwall will visit New Zealand in November. This will be the second joint visit for Their Royal Highnesses to New Zealand. More>>

ALSO:

Tracey Martin Replaced: Ron Mark Is New New Zealand First Deputy Leader

Clayton Mitchell was the successful candidate for the Associate Whip position. Winston Peters was re-elected as Leader by the Caucus. Ron Mark was elected as the Deputy Leader with effect from 10am, Friday, 3rd July. More>>

ALSO:

Rebuild Rebrand: "Regenerate Christchurch" To Replace CERA

The regeneration of Christchurch will be the city’s focus for the next five years as local leadership progressively takes control of the rebuild, Canterbury Earthquake Recovery Minister Gerry Brownlee says. More>>

ALSO:

Nauru: Scholars Urge Minister To Act On Deteriorating Democracy

“Since the 2013 election in Nauru, there has been a series of disturbing developments on the islands that indicate a severe deterioration in the state of its parliamentary democracy and in the rule of law,” say the scholars. More>>

ALSO:

Foreign Affairs: NZ Begins Presidency Of UN Security Council

Prime Minister John Key has welcomed the start of New Zealand’s month-long Presidency of the United Nations Security Council in New York. More>>

ALSO:

Labour: Cash For Charter Schools, Mould For State Schools

“Recently released financial statements show the Whangarei charter school He Puna Marama received $3.9 million in government funding to the end of last year. Yet their audited accounts show they only spent $1.4 million on education, leaving almost $2.5 million over two years unaccounted for." More>>

ALSO:

Kiwirail Plans Shift From Electric: National Urged Not To Take Backwards Step

The National Government shouldn’t drag New Zealand backwards by replacing its climate friendly electric trains with carbon-polluting diesel trains, the Green Party said today. More>>

ALSO:

Capital Connection:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news