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:

Midwives On Pay Equity: Historic Bill Of Rights Case For High Court

“We have been left with no choice.” That from Karen Guilliland, the Chief Executive of the New Zealand College of Midwives, as the organisation prepares to file a pay parity discrimination case on the basis of gender under the NZ Bill of Rights Act in the High Court. More>>

ALSO:

Gordon Campbell: On The Children’s Commission Report On CYF

Accusing the overworked and underfunded staff at Child, Youth and Family of a “dump and run culture of neglect” is the kind of luxury that a Children’s Commissioner can afford to indulge in from his own comfy perch in the bureaucracy. More>>

ALSO:

Mt Eden Prison: Serco Inquiry Extended

A two month delay to the Government investigation into prison fight clubs shows the extent of problems within the Serco circus, says Labour’s Corrections spokesperson Kelvin Davis. More>>

ALSO:

Health And Safety: Late Addition Of National Security Provisions A Concern

The New Zealand Law Society has expressed its significant concerns at the last-minute addition to the Health and Safety Reform Bill of provisions for a closed material procedure for court proceedings where national security is involved. More>>

ALSO:

Rugby And Beer: World Cup Alcohol Bill Passes

ACT MP David Seymour’s Sale and Supply of Alcohol (Extended licensing hours during Rugby World Cup) Bill completed its third reading by 99 to 21... More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news