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

 

Budget 2015: Auckland housing – more land for development

Budget 2015: Auckland housing – more land for development


“We welcome the Government’s announcement that 450 hectares of Crown land will be brought into play for development of housing,” says Richard Forgan, PwC Budget 2015 Leader and Partner.

This is adding to the toolkit to address the issues of the Auckland housing market, but the underlying issue is population growth. Auckland’s population is surging on the back of movement from the regions and as the preferred destination of immigrants and returning Kiwis.

LVRs, Speculator’s tax
The Reserve Bank’s LVR approach – targeting loans made in Auckland and to investors rather than owner-occupiers – can be expected to contribute to restraining demand although it does so by making property ownership more expensive. Some of the speculation in the current market will also be damped a bit by the new ‘bright line’ tax on properties sold within two years, along with the requirements for foreigners to register with tax authorities. These can act in the short term, but do not address the key population growth which is driving demand.

SHAs, Crown land
On the supply side, Government is continuing to push Special Housing Areas hard and now bringing some of its own land into the frame making it available for developers. This follows models being trialled in Christchurch for accelerating affordable housing developments. It will be useful, but it is not large in terms of the imbalance between
demand and supply.

What else could be done?
Urban regeneration: Significant investment has been signalled via Tamaki Redevelopment Corporation, with the transfer and potential redevelopment of over 2,500 Housing New Zealand properties. Other parts of Auckland would benefit from similar approaches.

Do density better: Restrictive rules around height and density in popular areas limit land supply, push too much responsibility onto greenfields developments to address the problem and actually financially penalise landowners in ‘protected’ suburbs in the long run.

Open up the building supplies market: We are a small market for building products with an NZ-specific regulatory regime for product certification. As such, the costs of market entry limit variety for products and reduce price competition. The food we eat and the medicines that cure us are subject to a joint NZ/Australian standard so why aren’t building products?

Align infrastructure investment with targeted housing areas: The Auckland Council is right. Housing without supporting investment reduces the attractiveness of greenfields sites to developers, which reduces supply. The success of the greenfields areas in the south of Auckland will be utterly dependent of the ability for the transport network to connect people’s homes to their places of work. The capacity driven by the City Rail Link, as well as the Southern Motorway projects are critical to the commercial attractiveness of these developments, yet the CRL is being delivered 5 years later than the Southern Initiative if the Government’s timeline for the project is accepted.

-ends-

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Let It Go: MP Pay To Be Frozen

The Government is freezing MP salaries and allowances for a year while developing a fairer formula for future pay increases.

The Remuneration Authority is due to make a decision on MP pay shortly.

“Today Cabinet agreed to freeze MP Pay till July 2019, and to reassess the funding formula used by the Authority to ensure it is fair and in keeping with this Government’s expectations and values,” Prime Minister Jacinda Ardern said. More>>

 

Cop Shop Top-Up: 1800 New Police Through NZ

Police Commissioner Mike Bush has today confirmed further details around the allocation of the 1800 additional officers, following a $298.8 million increase for Police in Budget 2018... “These 1800 officers, alongside 485 support staff, will really enhance our work to keep people safe, and ensure they feel safe,” says Mr Bush. More>>

ALSO:

Human Right Commissions: Concern On Aged Care And Consent

A new report published by the Human Rights Commission raises concerns about the legal and human rights safeguards for an estimated 5000 elderly New Zealanders in secure dementia units and psychogeriatric facilities. More>>

ALSO:

Justice Reform: Andrew Little Interviewed By Corin Dann

“We’ve had thirty years of the auction of more penalties, more crime, more people in prison but it‘s not working, it’s not making us safe.” More>>

ALSO:

Greens AGM: Leadership Stands Firm On Waka Jumping Bill

The Green Party leadership have dug in their heels and will not be reversing any of the decisions they have made in government. Former MPs Jeanette Fitzsimons and Sue Bradford had hoped the caucus might be persuaded this weekend to pull its support from the waka jumping bill. More>>

ALSO:

TOP Still Going, Actually: New Leader For Opportunities Party

New leader Geoff Simmons' aim as the leader of TOP is to take the party into Parliament at the next election where it can advocate and implement progressive reform in areas including fair taxation, cannabis legalisation, affordable housing, and environmental protection. More>>

ALSO:

Gordon Campbell: On Another Reason To Loathe HR Departments (And On The Teachers Strike)

This morning’s news item about Police emergency call centre staff turning up for work while they’re sick – because they’re afraid their sick leave statistics will be used against them, and their jobs put in jeopardy – is not an isolated case... More>>

MPs' Computers To Be Searched: Inquiry Into Leak On Simon Bridges' Expenses

An inquiry has been launched to find out who leaked the National Party's expenses to the media... Parliament's speaker, Trevor Mallard, said a Queen's Counsel would lead the inquiry with the help of an employment lawyer and also someone with forensic IT skills. More>>

ALSO:

Teachers Strike: Nationwide Rallies And Marches

Teachers and principals voted for a full day strike to be held on 15 August to send a strong message to the Government that the current collective agreement offers from the Ministry of Education would not fix the crisis in teaching. More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages