Top Scoops

Book Reviews | Gordon Campbell | Scoop News | Wellington Scoop | Community Scoop | Search


John Key: Auckland property prices increasing "too rapidly"

John Key acknowedged today that Auckland property prices "are going up too rapidly".

Photo credit: Megan Gattey

John Key acknowledged that Auckland property prices "are going up too rapidly” in a press conference held today in Wellington, however he said this is not anything new.

“Three or four years ago, you were struggling to sell a house in Auckland,” and now there is a huge demand, Key said.

Key said this pattern is not unique to New Zealand.

"There are also very high price increases in Sydney and Melbourne.

“Things are never perfectly straight line in the house market.”

Key said the government thinks the primary response is on the supply side.

“Our major focus of attention is trying to get people into property, and particularly first home buyers.

“New capital gains tax is not something we are proposing.

“If you did do anything, you just want be really sure that you aren’t going to interrupt the supply which is starting to build up now in Auckland.

“Modest price increases are the right way forward. Large price increases can be destructive long term at the moment.”

The government is not looking at building more state houses, focusing instead on special housing areas.

Key said there are now 104 special housing areas, 90 of which have started preliminary work.

“14 have indicated that they are not progressing.”

Key said he believes those 14 special housing areas are in Auckland.

“If we don’t have any advice that they’ve started doing the preliminary work that they needed to do, they will probably find that in the next few days they will be getting a letter from Nick Smith saying that if they do not progress and bring those special housing areas onto the market, then the special area housing designation will be taken off them.”

Key denied that this was a letter of threat.

“We made it clear right from day one. If you want to to have a special housing area, it’s because we want you to speed up supply for the Auckland market, and for the other areas around the country that were designated.

“If you don’t fulfil that requirement, then you don’t need a special housing area and therefore we shouldn’t give you the benefits.”

Key said that the Reserve Bank is unlikely to raise inflation.


© Scoop Media

Top Scoops Headlines


Keith Rankin: Science, Scientists, And Scientism
Science, in the not-so-recent-past, has often had a bad press. It's been personified, particularly by the political left, as Frankenstein, as agents of capitalism, classical liberalism, colonialism, sexism (yang over yin), eugenics, and god-like pretension. More recently though, in the zeitgeists of climate change awareness and covid, it's had an unusually good press; although we retain this persistent worry that viruses such as SARS-Cov2 may be the unwitting or witting result of the work of careless or evil scientists... More>>

Dunne Speaks: Can ACT's Dream Run Continue?

By most reckonings the ACT Party has had a very successful political year. Not only has its expanded Parliamentary team settled in well to its work, without controversy or scandal, but its leader has gained in community respect, and the party’s support, at least according to the public opinion polls, has increased sharply... More>>

Keith Rankin: Basic Universal Income And Economic Rights
"Broad growth is only going to come when you put money in the hands of people, and that's why we talk about a Universal Basic Income". [Ritu Dewan, Indian Society of Labour Economics]. (From How long before India's economy recovers, 'Context India', Al Jazeera, 31 Oct 2021.) India may be to the 'Revolution of the twenty-first century' that Russia was to the 'Revolution of the twentieth century'... More>>

Gasbagging In Glasgow: COP26 And Phasing Down Coal

Words can provide sharp traps, fettering language and caging definitions. They can also speak to freedom of action and permissiveness. At COP26, that permissiveness was all the more present in the haggling ahead of what would become the Glasgow Climate Pact... More>>

Globetrotter: Why Julian Assange’s Inhumane Prosecution Imperils Justice For Us All

When I first saw Julian Assange in Belmarsh prison, in 2019, shortly after he had been dragged from his refuge in the Ecuadorean embassy, he said, “I think I am losing my mind.”
He was gaunt and emaciated, his eyes hollow and the thinness of his arms was emphasized by a yellow identifying cloth tied around his left arm... More>>

Dunne Speaks: Labour's High Water Mark
If I were still a member of the Labour Party I would be feeling a little concerned after this week’s Colmar Brunton public opinion poll. Not because the poll suggested Labour is going to lose office any time soon – it did not – nor because it showed other parties doing better – they are not... More>>