Alexander: House prices will keep rising
The Government has pledged to ask councils to make more land available within and outside cities, set a maximum six-month limit on council processing of residential building consents, consider rezoning all land as residential, look at how to fund infrastructure and hold an inquiry into construction sector productivity.
But Alexander said there were many reasons why Auckland’s house prices in particular would continue to rise regardless.
These included a property shortage: Auckland did not enter the recession with an over-supply of property and construction has been constrained since then. Last year, building consent levels were at a four-decade low.
He said removing LAQCs and depreciation deductions had not made a difference to prices nor encouraged investors to sell. Interest rates would likely remain low for some time, he said, because of the poor growth prospects in global economies.
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