Pressure on Council ramps up
The Property Council has pointed to the Proposed Auckland Unitary Plan as crucial to dealing with Auckland’s supply shortage.
Property Council Chief Executive Connal Townsend said further restricting borrowing – as introducing debt to income ratios as suggested by the Reserve Bank would - does not change the value or shortage of land.
“This policy could stop what we need most which is building more houses in Auckland, and offering the housing choices demanded by the market.
“Auckland is one of the most unaffordable housing markets in the world. Reducing the number of people who earn enough to be able to borrow for a house will be a severe blow to the construction of more homes.”
In his view, limited land supply and speculation have caused buyers to become price-takers with demand becoming relatively inelastic.
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