http://nzier.org.nz/media/better-gro...-media-release
If nothing else the heat map of regional property prices is interesting
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http://nzier.org.nz/media/better-gro...-media-release
If nothing else the heat map of regional property prices is interesting
Jeez you turn a different problem into an argument to support your own views. Even the headline to the story said 'confused'
Nothing to do with a shortage of houses - all about the inept workings of Housing (prob only doing what the govt tells them anyway) in not keeping up with demand for houses for the so called needy.
Last census figures reported 509k dwellings in Auckland (of which 33k were unoccupied by the way) sort of suggests that even through their own failings they are 3000 short doesn't cry out and say there is an overall supply problem
you grumpy today turmeric
Have you considered that maybe, just maybe, the government (HNZ) has purposely not really put much effort into building these 3000 houses.
What happens in Auckland affects NZ..unfortunately,we had to fund my daughter's extra deposit to get a mortgage recently thanks to the ongoing greedy shenanigans in Auckland...
I'm more inclined with Winners argument .. the stats show there isn't that big of a shortage in Auckland..
To add to that.....I recently had a chat with some 40 somethings.. they were Hamiltonians who left their jobs and were making serious money by House flipping in Auckland..... buy up property, doing "cosmetic" renovation, keep that property for about 6 months then sell it for a quick capital gain ....during this time the house remains empty...stops Tenancy Act hassells in trying to get the tenants in and out quickly + no tenant property damage risk...These buggers are sure that house flipping is happening a lot in Auckland at the moment..
As this is a shadow economy activity there is no actual data as to how many unoccupied pre-flipped houses there are in Auckland...by the sounds of it from them it wouldn't surprise me if there were hundreds if not thousands ...
Pretty pictures in this report from ANZ.
http://www.interest.co.nz/sites/defa...May%202014.pdf
Page 7 has an updated report on housing supply demand. Summary
The demand and supply for housing in New Zealand is broadly in balance. However, there are clear regional differences. Auckland, Christchurch, Wellington and the Bay of Plenty have a shortage of stock; conversely the rest of New Zealand has a surfeit of supply. While Auckland has a clear housing shortage, updated estimates using last year’s Census figures are not as dire as previously thought and help explain, in part, why the rental market has not followed general house price trends and gone ballistic.
From the Herald today.
http://www.nzherald.co.nz/business/n...ectid=11267685
Seems like Auckland just like Dublin
http://www.davidmcwilliams.ie/2014/0...-estate-agents
Interesting concept about only lending against the average house price for the last 20 years instead of the latest -
Abstract: The way to stop house prices rising dramatically from here is to stop credit going to housing, because ultimately credit drives asset prices. This can be achieved by preventing banks from lending excessively against property. If we were to lend against the average house price over the past 20 years, rather than the last price rise, it would prevent the inbuilt dynamic which links banks to credit to house prices kicking off again.
Back in the day when I was studying Economics inflation was their key concern primarily due to NZ high levels during the 80s. When this was brought under control they decided to recently add unemployment to their box of tricks. In reference to their breach mandate I was indicating that they are keeping an close eye on the housing market but use inflation as the excuse. Since housing makes up a component of inflation (25%?) and is rampant in Auckland etc there are indications that hikes in the OCR are driven by housing and nothing else. This being the case they have failed to build long term wealth in NZ by killing the export sector and domestic invesment. This is not only their fault as the governments inaction to have sensible housing policy for all NZ. This failure in policy makes the RBNZ task harder.
Not sure how they balance both long term and short term but raising the OCR to kill exporters and business which wont help the country in the long term. Also hearing about NZ's "Rock star economy" makes me smile. With growth around 2.5% it is equal to US/UK. Singapore has a Rock star economy but we just accept whatever is told to us.
In summary the recent hikes are about housing and nothing else. As I am aware it is Aucklands housing and not businesses that are the governments/RBNZ concern. We should be governed by smarter people and not muppets.
Aussie GDP apparently 3.5%
Not too bad when stories say country in the ****
Should quote other relevant stuff from that article for completeness sake, in that the bottom end of he market is doing OK
Abstract:
Mr Ingerson found that more houses, flats and apartments priced in the bottom 10 per cent of sales values were being sold in Auckland than at the same time last year.
In the first three months of the year, 11.7 per cent of sales in greater Auckland were from properties in the bottom 10 per cent of the price ladder.
A year ago, that was 10.1 per cent.
"Rather than the bottom end of the market plummeting since the LVR speed limits came on, activity has stayed stronger than the long-term average and above the same time last year," he said.
http://www.nzherald.co.nz/property/n...ectid=11270157