Saturday, November 4, 2017

Housing & land supply policies under coalition

The third part of my introduction to the new government's housing & land policies is this piece on the specifics in the coalition agreement and the confidence & supply agreement with the Greens.  Parts one and two are here and here respectively.

The text of the coalition agreement between Labour and New Zealand First is here.


The specifics on housing/land development is just this.  Yes, just one, and this is it:
  • Establish a Housing Commission.
The text of the Labour/Green confidence and supply agreement is here:  

The specifics on housing/land development are these:
  • Aim to end poverty in New Zealand and ensure that every New Zealander has a warm, dry, secure home, whether they rent or own.
  • Budget provision will be made to substantially increase the number of homes insulated.
  • Deliver innovative home ownership models within the State and broader community
    housing programme.
I'm very surprised that there is nothing in the coalition agreement concerning the prohibition on foreign buyers, particularly because it's a New Zealand First policy.  And frankly, considering how much fuss both Labour and New Zealand First made of this issue over the last few years, it's an insult to our collective intelligence that the only thing they actually promise to do is to implement another bureaucracy.

My next post is a lengthy diatribe on Phil Twyford's discriminatory foreign-buyer ban, which seems to be the first thing the government wants to do, despite it not rating a mention in the coalition agreement.

2 comments:

Anonymous said...

Time to put the foreign ownership ban into perspective. It is not the foreign ownership it is foreign buying to let that is responsible. Any New Zealander can buy a property in France but the moment they try to let it, even as a holiday let the wheels fall off. Houses are for for homes seems to have held the French and Germans in good stead without banning foreign ownership. Currently in France there is a big airbnb crackdown and those who foreigners who have bought in seaside towns purely for letting are now facing major financial penalties.

Lord Egbut

Psycho Milt said...

"My next post is a lengthy diatribe on Phil Twyford's discriminatory foreign-buyer ban, which seems to be the first thing the government wants to do, despite it not rating a mention in the coalition agreement."

Given that all three parties are keen to turn off that particular property-bubble-inflater, they don't need to write anything into the agreement - there was nothing to negotiate.

It's pretty clear when you look at the figures that the crisis really kicked off when the cheap-labour immigration scam got going. The supply/demand graph in this Stuff article shows demand shooting up from 2013, while the arrivals graph in this article shows the same for immigration. So the main thing to do will be to stop the cheap-migrant-labour scam.

However, it's also been clear for years that Chinese citizens' enthusiasm for shifting money offshore has driven property price increases in various countries, and is why the Chinese government clamped down on it this year (which in turn is one of the reasons the Auckland markets flattened out, albeit at a ridiculously high level). The people claiming foreign purchasers have little to do with the property bubble are mostly people who are benefiting from that bubble: property investors, real estate companies, conveyancing lawyers, existing property owners and National Party MPs. Their views on this aren't to be trusted.