House prices were only rising at 13 per cent in Auckland, and were fairly moderate in the rest of the country, Mr English told TVNZ’s Q & A program on Sunday.
The government is continuing to work on increasing the supply of housing to deal with rising house prices and won’t “get distracted” in trying to control demand because it’s not effective, he said.
He said there were both physical and procedural limits to how quickly new houses could be built on bare land. “We’re trying to short-cut them. We’ve got the special housing areas, we’ll have further legislative short-cuts coming. “The government’s cranking up the development of its own estate, because we’re a big landholder.”
Mr English said supply of housing would soon meet demand in Christchurch but it would take longer to get the balance right in Auckland.
He would not be drawn on whether the Reserve Bank of New Zealand should make it more expensive to borrow money to buy investment properties to quell the hot property market.
“I think they’re going about as fast as they can to make sure they understand all the issues, because bear in mind, every time you intervene like this, it has some unexpected consequences or consequences you’re trying to minimise.
“So the LVRs, for instance, made it harder for first-home buyers, and so the government’s got a scheme coming out.”
I have to laugh at “only 13%”.
And Bill, you are intervening- with immigration policies that drive the whole housing market and make it a sure fire winner for anyone with cash to spare. In fact its not really a housing market as much as a share market boom without the share market. Forget about housing as a basis for establishing a family and raising them, its all about getting rich as quickly as possible.
Here’s a clue. Stop immigration and house prices will plunge overnight.
And of course so will your smoke and mirrors economic growth predictions.