Monday, March 19, 2012

Do these guys talk to each other?

Bill English on Friday - that's two days ago:

Bill English is confident we're not about to see another housing boom.

Property prices have been rising...especially in Auckland...with real estate agents saying there aren't enough houses on the market.
 John Key this morning:
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.    

2 comments:

Anonymous said...

I think the next "bubble" will be the first "bubble" in NZ. Our house prices are not speculation driven in the way they are in Australia (as an example.) The rise in house prices in NZ between 2003 and 2007 was in response to a rise in population. Whether owning a house is a completely wise ambition I do not know, but it remains an ambition, and NZers are remarkably deficient in the ambition/aspiration stakes.

Faversham

Anonymous said...

Put a nuclear power plant in the Devonport Naval Base. Get the navy to turn the guns outwards to deter the nut cases.
100,000 Jafas will leave because they couldn't bear being near a weapon of mass electricity.
No money would need to be spent on new houses or new roads
Inflated house prices in Jafa-ville....Gone
Plus a lot of pylons and cable can be recyceld out of the Waikato!
Bulaman