Bill English is confident we're not about to see another housing boom.John Key this morning:
Property prices have been rising...especially in Auckland...with real estate agents saying there aren't enough houses on the market.
New Zealand's housing market is set to take off again, particularly in Auckland, as slow planning processes, lack of development finance and internal migration forces up rents and prices, Prime Minister John Key said this morning.For the record, Key is 100% right. And this one will be big. It's very evident. It will make Labour's capital gains tax look very attractive politically, but all the policy and handwringing in the world won't stop it. That's because the market is bigger than government intervention. The only policies that will help cure it won't be enacted because neither large party, and certainly not the Auckland Council, are prepared to release large areas of land and reduce compliance costs. The number of people versus the amount of land will drive it, including pent-up demand from years of no development.