Wednesday, 13th May, 2015
The Reserve Bank measures unveiled today designed to restrain Auckland house price rises can only be described as a ‘band aid,’ says Auckland Chamber head Michael Barnett.
They cannot possibly be a long-term answer, and at best are an ad hoc response to our long-term failure to plan strategically for Auckland’s rapid growth.
How the property market is likely to respond between now and October when the measures come into effect will only add to the trend of rising prices, he said.
The crises won’t go away until clear evidence is shown that the supply side is being addressed. “We need to see evidence that Auckland has the capacity to build 13,000 houses a year – for the next 30 years – and is doing so.” A monthly progress report on new house completion against the 13,000 we need to build each year would help.
“Making more land available and thinking we have fixed the problem is wrong – we also don’t have adequate road, water, sewerage and other essential services.”
The long-term solution has got to be about doubling our efforts to build more houses, but also ensure enough ‘ready’ fully serviced land is available.