National to build 34,000 houses in Auckland over next decade on land currently with 8,300 state homes on it; 60% to be sold off into the market

By Alex Tarrant and Jenee Tibshraeny

The National-led government has outlined plans to build 34,000 new houses on Crown land in Auckland over the next decade.

The net addition to Auckland's housing stock will be just under 26,000 new houses. The Minister responsible for Social Housing and Housing New Zealand, Amy Adams, said the properties would be built on land currently with 8,300 state houses on.

Of the headline number, 13,500 will be social houses and 20,600 will be “new affordable [and] market homes.”

And even those figures effectively overstated the net new additions from now. Speaking to media in Auckland after the announcement, Adams acknowledged some of the number related to houses already under construction. "Some of them are already underway – Tamaki’s in the early stages, Hobsonville…we’re about to clock up our thousandth [house]," she said.

Auckland Housing Plan

Adams said the main new announcement Tuesday regarded the bulk of the properties - 24,000 - that will be built under the government's Auckland Housing Plan (AHP). Of these, 11,500 will be social and 12,800 under the 'affordable' and 'market' categories combined.

The announcement follows indications from Prime Minister Bill English and Finance Minister Steven Joyce in recent weeks that National was gearing up to announce a large-scale building project to rival Labour's KiwiBuild policy. Labour had promised to build about 50,000 social and affordable homes in Auckland over a decade if it wins the 23 September election.

Labour leader Andrew Little said the announcement was National finally admitting New Zealand faced a housing crisis. “National can’t now credibly claim to be tackling the housing crisis four months out from the election when, for nine years, they’ve ignored the plight of first home buyers and families in need," Little said.

"This Government has long rubbished the idea of building houses. Time and again it’s failed to deliver any significant increase in housing supply," he said. Read the rest of Labour's reaction below.

English had said the new Auckland Unitary Plan would allow the government to expand its housing footprint on Crown land in the city from about 27-28,000 to over 69,000. Adams told media in Auckland Tuesday that "60,000" was a "theoretical" limit when asked why a higher build figure had not been proposed.

“The current stock is 28,000, so that effectively gives you a net new capacity of 32,000. Actually what we’ve announced today is not too far off that. But our building projects that I’ve announced today cover more than just the Housing New Zealand land. They also pick up Tamaki, Hobsonville, the Crown Land Programme," Adams said.

"What we’re also saying is, we’re not utilising every iota of potential development capability on the Housing New Zealand land. There’s still some there to go. And look, we’ve got to be careful. Because there’s a difference between theoretically possible under planning rules, and socially acceptable and good urban planning design," she said.

"I think the balance we’ve got to is the right blend for now, and also…is what we’re confident of being able to capably deliver over that time period.”

'Private bond funding will mean commercial discipline'

The AHP will require gross capital investment by Housing New Zealand of $2.2bn over four years.

Housing NZ will borrow $1.1bn of this from the private market for the first stage of building through a domestic wholesale bond programme. The second phase of building will be funded through sales of houses and land, and rental returns.

"Given Housing New Zealand’s strong credit rating, a domestic wholesale bond programme is expected to cater for the full AHP financing requirement, and represents the lowest cost option in terms of facility set up costs and interest costs."

In a Q&A, Adams said the use of private debt for the state-led building programme was decided on because, "we believe that external financing will deliver additional commercial discipline for Housing New Zealand."

"The AHP will deliver long-term rental returns that enable it to repay the debt required to fund construction," Adams said.

"Because of Housing New Zealand’s large balance sheet it is able to borrow privately in a relatively economical manner. It also enables the Crown to commit more of its capital to supporting wider infrastructure, like transport and the Housing Infrastructure Fund."

Mixture of housing

Housing New Zealand will build a mix of apartments, houses, and terraced housing through the programme "to align with demand and opportunity afforded by Housing New Zealand’s landholdings," the Q&A sheet said. 

Meanwhile, Adams argued Auckland's infrastructure would be able to handle the increased capacity.

"Auckland Council’s budgets and long-term plans show that it is continuing to make investments in infrastructure to accommodate the increase in housing proposed," it said on the Q&A sheet.

"Further policy actions by central government, such as the Housing Infrastructure Fund, will also accelerate the provision of infrastructure in to better accommodate rapid population growth."

Speaking to media after the announcement, Adams said she was "absolutely" confident that infrastructure and construction industry requirements would be met.

"Housing New Zealand has been working with the development community as part of scoping out this piece of work. Those are obviously some of the questions the Cabinet was very interested in when we signed off the business case," she said.

“We tested and pushed Housing New Zealand pretty hard on their ability to complete this work.”

The proposal had been in the works for two years, she said.

'Affordable' under $650,000; Private developers to be allowed a fair return, but not excessive

Adams said the government's definition of 'affordable' related to the HomeStart price cap of about $650,000.

“That means if you’re a young saver, you can access both the government contribution and draw down on KiwiSaver for properties under that level. Now that’s the maximum – obviously anything under that counts as affordable," Adams said.

“So we’re looking at one- or two-bedroom apartments [at] $550,000, $600,000, as I say up to $650,000 to meet that category.”

Adams said covenants would be agreed on with developers of the 'affordable' properties relating to "the prices at which they’re sold, who they are sold to, who can buy them."

Meanwhile, on 'market' houses: "...the ones we class as not ‘affordable’ - just normal market houses – my expectation is that they would be sold as normal housing with few restrictions," she said.

Land would not be sold for development without "some quite significant restrictions on development in terms of what they’re going to develop, over what time frame and how they’re going to sell it into the market," Adams said.

“We’re very careful about understanding the development potential of the land. We know the margins that the developers are able to make. We cost that in, so that they’re able to make a fair return, but not an excessive one.”

Adams said the programme will be "the biggest redevelopment of Housing New Zealand stock since the 1950s." Housing NZ's current stock was wrongly configured, she said. “We built a lot of three bedroomed homes; actually now our families tend to be one or two bedrooms, or five/six bedrooms.”

The new builds would be "right across Auckland." Adams said communities would first be notified of where building will take place rather than having street names just start appearing in the media.

Further projects are also likely to be smaller than the Tamaki and Hobsonville developments underway. They will "tend to be intensifying existing Housing New Zealand stock…perhaps buying one or two sections that fall in between our current holdings so we have a more suitable development block.”

In the first few years, the focus will be on making sure new social housing is built to cover those who will have to move out of homes earmarked for demolition.

“We start by taking down one house in one street and putting up three [in its place]. That creates three places to move three other households into – that creates three more development sites," Adams said.

Decisions on which type of houses would be built for each specific building project would be decided project-by-project.

“It’s really important we don’t create social housing suburbs. That’s not what good urban design tells us is the right thing to do. A mix of market, affordable, social in an area – we know that makes the best communities," Adams said.

Adams attacks KiwiBuild

Adams used the media opportunity to attack Labour's KiwiBuild policy. “Labour’s numbers seem to be pulled out of thin air. There’s not the availability on Crown land to build the 100,000 they’re talking about," she said.

Labour has proposed to build about half of its 100,000 KiwiBuild properties in Auckland.

"They have to talk about where that extra land is coming from, how they’re going to fund it, how they’re going to make it work We’re confident that what we’ve announced is absolutely maximising the available land that we have. We know the cost, we know the timeframe, we know the building market ability to do it," Adams said.

Labour's full reaction is further below.

Read the release from Adams below:

The Government today has announced a Crown land and building programme that will see tens of thousands of new houses built in Auckland over the next decade.

Social Housing Minister Amy Adams announced that the Government’s Crown Building Project will replace 8300 old, rundown houses in Auckland with 34,000 brand new purpose-built houses over 10 years. 24,300 of these will be built by Housing New Zealand through their Auckland Housing Programme.

Over the next ten years, the Crown Building Project will deliver around:

13,500 newly built social houses

20,600 new affordable and market homes.

“This is a significant undertaking for the Government, for taxpayers, and for our Social Housing reforms. It’s the equivalent of three and a half new houses on every street across Auckland,” Ms Adams says.

“These houses will be for our most vulnerable families, for first-home buyers, and for the wider market. We are building more social houses for Aucklanders and helping provide a pathway into independent, affordable housing.

“The Crown Building Project is the Government making the most out of the available residential land it owns to meet Auckland’s social housing needs.

“These 34,000 new houses are a substantial redevelopment and construction programme on a scale not seen since the 1950s.

Phase one of the Auckland Housing Programme, which covers the next four years, will cost $2.23 billion and will be funded through Housing NZ’s balance sheet and new borrowing of $1.1 billion that the Government has approved as part of the business case. Phase two in the latter years will be funded through the market housing development part of the programme and rental returns.

Ministers have also agreed that Housing New Zealand will retain dividends and proceeds from state house transfers, to help fund the building programme.

“Our plan to build 34,000 new homes over the next ten years has been carefully scoped and designed, is fully funded, and builders are on site getting on with the programme already.”

Read Labour's reaction below:

National finally admits there’s a housing crisis, but today’s belated announcement is simply not a credible response to the problem it’s been in denial about for so long, says Leader of the Opposition Andrew Little.

“National can’t now credibly claim to be tackling the housing crisis four months out from the election when, for nine years, they’ve ignored the plight of first home buyers and families in need.

“This Government has long rubbished the idea of building houses. Time and again it’s failed to deliver any significant increase in housing supply.

“National cannot be trusted to do anything meaningful for the thousands of first home buyers in Auckland who have been denied their shot at the Kiwi dream.

“Amy Adams has fudged the figures. How many of these houses will actually be affordable? What does ‘affordable’ mean? How will that give hope to first home buyers when speculators can buy these houses too?

“It’s just more smoke and mirrors from a Government that’s failed miserably. It’s a mish-mash of old and new housing programmes. Many of these houses have already been announced.

“Auckland currently has a shortfall of 40,000 houses and growing. This plan won’t address the shortfall, let alone build the extra houses needed to keep up with demand.

“This last minute announcement just won’t do enough. National has had its chance. It’s time for a fresh approach.

“Labour will build 50,000 houses in Auckland people can afford to buy and we’ll increase the supply of state houses; we’ll crack down on speculators; and we’ll invest in warm, dry homes.

“National hasn’t a shred of credibility left. The evidence keeps mounting:

  • It promised a big increase in emergency housing beds in the last six months, and hasn’t delivered.
  • It’s Special Housing Areas promised an extra 39,000 homes, fewer than 2,000 have been built.
  • Housing New Zealand has failed meet its building targets and reduced the number of state houses by 2,500.

“This cynical announcement by National should be seen for what it is – an election year fudge to paper over the cracks of its failure in housing. It’s time for Labour’s plan,” says Andrew Little.


Our 2017 election issue coverage is supported by EY. For more about how EY is building a better working world, see here.

We welcome your help to improve our coverage of this issue. Any examples or experiences to relate? Any links to other news, data or research to shed more light on this? Any insight or views on what might happen next or what should happen next? Any errors to correct?

We welcome your comments below. If you are not already registered, please register to comment or click on the "Register" link below a comment.

Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current Comment policy is here.

98 Comments

up
33

awesome.....34,000 houses over a decade...

And at current immigration rates they'll be another 500,000 people living here...yeah - makes sense.
And nary a squeak about demand.....
Sorry fellas you wont get my vote again - probably never again.

up
23

Agreed 100%. Attack demand, as well as supply and you will make a difference.

Sadly National loves to juice the GDP stats using immigration then tell everyone what a good job they are doing about running the economy.

up
12

National could not organize a "piss up in a brewery".

Their only tactic as far as I can see is try to get everyone so pissed they cannot think rationally. At least Winston can think straight half pissed.

3.3 Demographic context
Auckland has diverse demographic characteristics and different parts of Auckland have different demographic
characteristics. Auckland is home to over 180 ethnicities and almost 39 per cent of Aucklanders were born
outside New Zealand. Whilst the majority of Auckland’s population is New Zealand European (59 per cent), we
also have the largest Polynesian population of any city of the world (15 per cent), around 11 per cent of our
residents identify as Māori and 23 per cent are Asian.

Quoted from LONG-TERM
INFRASTRUCTURE STRATEGY 2015-2045 Auckland city council

up
20

Does and can anyone EVER believe a word this lot says, ever again? This problem has been building up for as long as they've been in power and they were ALWAYS going to do something about it, remember HobsonVille etc? They have NO INTENSION to really fix this problem, JUST seem to be trying to do something about it. WAKE UP NZ !!!
TOO LITTLE TOO LATE YET AGAIN. Change the Government is the ONLY hope for NZ

The current government is not viable for our long term. However the alternative is also not viable. Labour comes with the Greens who are actually red, they may build a few more homes, however they will once again change the fundamental face of our culture and society with their social experiments. too scary for me. I can't bear to vote Nats either... stuck between the pigs at the trough and the goats trying to get in. Where are the selfless honest leaders in our country?

Agreed that labour may or may not perform but one thing is different that natonal. Time for change

The fundamental face of our culture and society is being changed by the current government already.

"stuck between the pigs at the trough and the goats trying to get in."
I like that; might file it for future reference..

Better than nothing, I guess. But wayyyyyy too late.

At least National are selling on the open market. From memory labour think the government can pick the most eligible people to get a massively subsidised house while others miss out and have to pay hundreds of thousands more.

up
16

Haha, We gunna make ghettos, and move all you kiwis into them battery crates - especially in northcote. We gunna give new homes to the needy - well you middle class are gunna pay for it all (from your cold and damp existing houses). In the mean time - we will open up more flights to the rest of the world so they can come in and play at sky city - high rollers table - but dont worry your kiwi saver is all well invested.

up
11

The middle class will no longer exist we are fast approaching a two tier class system. The wealthy in Remuera/eastern suburbs etc and the remainder living in housing estates. If by chance, you are one of the remaining middle class trying to build the costs are about to sky rocket as all the builders will be gainfully employed building substandard housing estates that the government has now deemed is going to be your lot in life. This constant narrative and not addressing rampant immigration is destroying the middle class which is the bread and butter of our economy.

They won't be ghettos but they will replace ghettos. Watering down the state housing areas with private owners is good for everyone

Labour plans 50,000 over the same period for Auckland and another 50,000 for the rest of the country. As far as I can tell they have not broken the figures into social / market. So is an extra 16,000 homes for Auckland and an extra 50,000 for the rest of NZ going to be the difference. How much will the private sector generate and will that be enough?

So in phase 1, the budget accounts for approx 64K on each of these 34,000 new homes. I wouldn't think you could enable too much with that level of chump change.

up
18

What a joke.
Give us some actual numbers. $2.23bil over the next 4 years - at current prices and average floor areas, you are looking at 5,500 houses over that period.

And, they still aren't addressing the issue.
Still allowing Fletchers to run a muck with prices and no directive to decrease implicit taxation at the regional level.

up
21

I bet Fletchers is lined up for a big piece of the pie....

Fletchers consistently stops any competitors entering the market and the government together with all our ridiculous building rules and regulations allows, if not blatantly encourages, it. Builders love this monopoly as they are bribed with cheap overseas holidays if they use certain products. Even that Chinese developer (I can't remember who it was) trying to build in the CBD raised this.

Yep a total rort. Yet National haven't changed any of this in 9 years. Surely it's one of the few easy fixes (unless of course they benefit from the rort)

What are the figures for new builds made by National over the last 9 years?
Actual builds with someone nowliving in them of kiwi descent- not just some hopeful scratchings on Smitties tatterrd old clip board as he wandered the back blocks of Akl in his gummies during the FHB armgeddon.

On their works you will judge them.

up
27

It is not going to happen unless they will import the 'finished houses' from overseas...
There is no builders to do it - whoever wants to do anything related to construction will confirm it.

It is typical trick before the election.

Do the obvious, ban overseas ownership, put CG tax, implement 60% cash deposit for anything more than primary residence, tax heavily (increased rates) investment properties. That will make you 30.000 houses in 5 years without using a single nail!

up
12

No,no...you don't understand! We are going to import the labour and skills to do the building. That way the new immigrants can live in the very houses they have just built. GDP figures will look good, to boot......(sarc,off)

up
14

I'm sorry Jerry, we cannot allow your common sense or logical thinking to continue existing. Please report to the nearest DHB for your frontal lobotomy.

Got to allow five years for the migrants to get their NZ citizenship so they can flit off to West Island.
Hope some of them trip over their money bags and leave some behind.

That is not going to be such a draw in the future with Australia making life for NZers harder and harder all the time.

Maybe they go in with a NZ passport and then flick over to their original status and claim to be a refugee.
;o)

How much of this number has been included in the previous Nats announcements?
Are they just massaging the boil to get a bit more pus out of it?

Funnily enough, Brian Rudman in NZ Herald today quotes Nick Smith's 39,000 in three years from 2013.
Only 4000 consents resulted .
Just 1000 have been completed.
On my calculation that is 38000 short.
The 34000 now promised less the 8000 houses to be demolished leaves the "NEW PROMISE" already 12000 less that the 2013 number.
Just another 'Nick knack'
We need some real analysis from the unprofessional keyboard interviewers that infect the fourth estate.
Even they should be able to understand my simple maths.

Uh, so what house price does National term "affordable," seeing as these new builds are in Auckland? $500k for a 45m2 shoebox?

up
20

Funny but everyone seems to think $500k is "affordable"....OMG. No one it seems wants to bite the bullet and a) collapse the price of land b) stop immigration c) stop foreign ownership . Until these happen houses are going to remain over-priced and our entire economy at risk.

Oh, I meant "affordable" in relation to National's point of view :) As a FHB I'd consider $50k to $300k (at the absolute most) to be affordable.

That's a salary in Auckland, not a house price. Get real.

Yeah all cleaners get $300K.

I said that $50k to $300k is affordable for a first home, not that houses should be priced between $50k and $300k.

You can buy a house now for $50k.
Of course you need to be willing to relocate to Tokoroa.

They want to prolong the bubble as long as possible, so that way the collapse isn't in their control and they can say it wasn't due to their doing.

I'm thinking a controlled collapse is always better than uncontrolled, but that's from a perspective that no single investment class should be favoured. For example, it would be great if homeowners thought of investment properties the same as they think of investing in shares after the '87 crash.

Agree 500k is not affordable for many.

Swedish companies IKEA and Skanska (one of the largest construction companies in the world) developed a high quality low cost housing concept "BoKlok" which would help increase density (lower cost of land per home, therefore lower base cost), improve quality of building (designs are simple, good use of space so a smaller home seems bigger) and low building cost.

They sell the houses through IKEA so NO real estate agent cost, saving again

Another concept that should be included in all social housing, is restriction of speculative buys increasing prices.

BoKlok rule says (translated from Swedish)
"Speculation purchases of newly produced housing are becoming more common, mainly in the Stockholm area. At BoKlok we are building homes for the many people, and we are aware that those who buy our homes intend to live in them. This is a clear wish from our customers. Of course, we are pleased to note that our homes have a high secondary value, but our business idea is based on the fact that those who buy want to live in our homes.

In order to counter speculation purchases, we put in some projects a so-called pristak clause in the tenant association's statutes. This means that the buyer can not sell his property by more than 5 percent in profit per year until 2 years after the purchase.

The allowed second-hand price corresponds to the price paid by the first-time buyer and any value-enhancing improvements made in the home. In addition, the selling price can be increased by a maximum of 5% per year."

"The BoKlok concept
BoKlok is a groundbreaking housing concept, developed by IKEA and Skanska. Together we build blocks of flats and terraced houses for people who want to live in a home of their own, but still have money left at the end of the month." https://www.boklok.com/about-the-BoKlok-concept/

Hi John form Holland,
IKEA was booted out of NZ due to " Environmental concerns" ???? maybe a lobby working against the common man?

regards

up
13

Election year and still this is the best that they could offer.

Problem is that trust deficit at low end with national. Master of cover up and twisting data to suit their vested interest. No one really trust them and they themselves are to be blamed.

NZ is going for a change come election.

Why is national so protected and in denial mode when it comes to demand side of the housing crisis. Something is wrong somewhere. Wonder what does so called experts have to say about national silence on demand as an issue - only speculators will try to dismiss demand as an issue for vested interest so does that mean that national is out to protect and defend the speculators.

Need say more about the government voted by us.

Would love to see the road map or breakdown of this plan in yearly stages. Which areas will be getting these houses and by which date. This all sounds like something is happening but like SHA's have not made dent in the the supply problem. Funding is one thing but where are the labour resource going to come from? Cheap labour moving to Auckland to build??? Yeah good luck with that - can barely keep the nurses, teachers and cops in Auckland what are the chances the tradies will come? Too little too late. Not getting my vote this time....sorry

We have been told that builders are now moving out of Auckland as they can no longer afford to live there. These were builder that used to build in Auckland, the situation is getting worse, there are now less builders in Auckland.

...a breakdown of their plan! They have no plan for housing. The only plan they have is keep the migration tap running full throttle and rape and despoil as much of natural NZ for their own personal gain as they can.

up
13

34,000 over a decade or 340,000 over a century, too generous, can't believe our luck. This will lead to oversupply. The house prices are going to drop between 30-50% soon with this announcement and once again houses are affordable to FHBs and Kiwi dream is back alive. National won my vote and probably I will educate my family and grand children one day, about this great policy by National, which changed the fate of so many Kiwis. We the first home buyers are eternally indebted to National and will repay the debt starting from this September election.

up
13

I actually thought you were being serious for a minute there :)

And, surprise, surprise, make the big announcement whilst Parliament is in recess for a week!
Hope the brouhaha has quietened down, and won't face too many tricky questions during question time. LOL.

up
11

The current shortage now is over 30,000 homes and getting worse at 10,000-15,000 per year and the government wants to build 3,400 per year. They are out by an order of magnitude.

up
15

..best throw in a few more gazillion for the associated infrastructure. When are these baffoons going to wkae up to the fact that their growth 'plan' for Auck/NZ in it's present form is just plain dumb. We cannot afford all of these people comng. Never mind a DOC entry fee, each new immigrant needs to front with $50k or so as an infrastructure levy.

http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=11785299

Hi all, refresh for an update, including Adams comments to media in Auckland this afternoon.

Cheers

Alex

Actually, lets give the Nats credit. I believe they are finally addressing the demand side by drowning it with supply! No one paid attention to the latest REINZ data - "properties for sale in the Auckland region has increased by 2,468 (+39%)." They will effectively kill any incentive to speculate, or invest by the time these properties hit the market

up
13

No, let's not, eh? They could have done that 9 years ago when Key was so "passionate" about unaffordable housing. They've only pitched this as a last ditch as they could see they were on a hiding to nothing over housing. There is no credit due for cynicism.

This is NOT addressing demand.

If I gave my children (and kept inviting the whole neighborhood of kids to play to make them happy and keep them quiet) unlimited lollies (really cheap lollies as there would be so many to feed) it would not lessen the demand it would just make them hyperactive and sick until they all threw up.

national must be worried to move on minister clueless and replace him with an able replacement who might get something done
in saying that to little to late, and still does not address the major issue, more people flooding into auckland is one cause of this issue, easy credit is the another, along with the tax treament of properties
all have to be tackled to make a dent,
its not all about supply

up
10

These days you don't have to look too far to see what's wrong with the New Zealand economy. A few weeks ago, Merrill did a piece on GDP outpacing infrastructure growth where New Zealand had honorary mention as one of the worst performing countries in this measure.
The government would rather let our country lose several years of growth and prosperity following a housing crash than lose their position on "not a demand side" problem. Isn't it ironic that they consider themselves centre-right, a political ideology where you put the interest of your own people before that of outsiders.

https://www.bloomberg.com/news/articles/2017-05-15/new-zealand-housing-m...

I bet our PM is too busy to read this article, as he must be making pizza's or out for a run...

up
15

$650k affordable??!! Given most in the public sector police, teachers, nurses, will never reach $100k let alone most working in the private sector are below the median wage of public sector workers who the hell can afford a $400k home let alone a $650k home... Amy, you're dreamin mate!!!

up
22

For the love of god. Each week we have to put up with these craven incompetents feels like an eternity.
For the 9 years they have been in power they have done nothing but stoke the current housing crisis and now, months before the election, they are supposedly about to solve it.

A genuine question: as NZ`ers, are we collectively really stupid enough to fall for this?

Yes, as now all the politically correct, social justice warriors with no IQ are going to be falling all over this wonderful show of benevolence.

I believe 45-50% will vote National - simply put they're the homeowners with too much at stake, they're the so called mum and dad investors negatively gearing their rental property(s) with too much to lose, they're the few business owners who continue to decry the youth of today for not taking up low skilled job opportunities whilst quietly enjoying paying foreign students and migrants minimum-low wages, they're the same individuals who can afford to live in the suburbs and send their children to decile 8-10 schools, they're the same folk who know that their assets will provide them a solid retirement and don't wish for anyone to tamper with taxes including Capital Gains.
National in all likelihood will form a coalition with the usual partners - however, it will be closer than the previous election if you're convinced Winston First gets more than 7% of the vote. I see the Greens slipping to 10% and Labour touching 30% even with Andrew Little becoming more prominent through the media. i predict that this again will be the lowest voter turn out in the history of NZ elections.

In answer to your question Ngrrk - yes they are.

there are only 130000 landlords, that is a small voting block by any measure,
that is about 5% of voters
So you have to wonder why national are putting up such a fight to protect them from all arguments and opinions from all quarters, academics , tax experts, IMF, treasury
also those landlords are collecting 2 billion in supplements and tax rebates per year.
and once you look at the asset register for MP's it leads to one conclusion, they are fighting to keep the advantages for themselves.
http://www.elections.org.nz/events/past-events-0/2011-general-election/2...
https://utopiayouarestandinginit.com/2016/11/17/how-many-landlords-in-ne...

Yes.

up
15

This is a drop in the bucket, and yet another tinkering around the edges by National. We must put a brake on the immigration machine to make any difference whatsoever. Rampant immigration has ruined Auckland for those of us who used to enjoy living here, what benefit do Aucklanders get from rampant, constant and unplanned immigration into the city we call home. Let's put a stop to it before it ruins the rest of this great land.

2 beddy apartment $650k.
3 beddy apartment $1.2 mil.

Developer;
We only build 2 beddys because we have too. Dont worry we'll make up the difference on the 3 beddy.

Pull the other Leg,acy!
Affordable is relative off course with ie $500,000 simple maths 5% interest = 1/20 = $25000 + tax on wages etc, suck it up when getting capital gain covering interest pain when market sentiment changes to new affordable, old a$$ordable will be shown up for the crock it is!
Tamaki Makaurau Community Housing at Waimahia Inlet is a basic SHA developed by 'non profits' with 'a$$ordable housing' priced presently from $680 000 for a practically attached 4 bedroom house, illustrating were supply a$$ordability sits at present.
Go Demand Go!
'Assordability' Washdoesn'twash!

Judging by the number jumping into the fray on this site, Adams plan appears to have rattled the comrades. Understandable though. The CHCH market having stabilised and Auckland's heading south, combined with this build plan from the Nats, rather pulls one of Andy's few remaining planks out from under him, eh.

The government can now make plans to build these homes because they know they will not be required. It is a hollow promise. Just like us, the government know that there is a 40% chance that the crash will come as reported in the NZ Herald today. The end is coming.

I agree with the above comments...we need a centrally planned economy and a govt that will do whatever it takes to solve this problem. If the govt imposed a one-time 10% haircut on all term deposits (obviously from people who don't really need that money anyway), then the govt could build at least 150,000 houses over the next 10 years and solve the housing problem. 50,000 houses should be provided rent-free to those who are struggling, in addition to benefits equivalent to a living wage of at least $30/hr. We need to change the govt now!

Duh...

Or instead of "Stealing" from Savers again, like they have done for the past 10 years. OAPs, those Saving for a deposit....etc, with a few bob, perhaps the Speculators, can contribute and Land-bwankers and tax dodgers, thieves and vagabonds be allowed to get caught in the net. The 1% who have all the dough, hidden in plain sight. Borrowed and hidden away.

Here and overseas.

Look at the big house owners, big noter's, big Corporates, big Trust owners, big Pharma, big Money Launderers, big Drug Traffickers , big Gangs, even the All Blacks, Film Stars, Singers anyone who has ASSETS of millions, not the small depositors who scrimped and saved..any

Think Ex-Bwankers,...think over blown bludgers, one and all...think share brokers, asset swindlers, imported inflationers....share brokers, Exchange Traded Funders, Gold Diggers..Government Officially backed.....one and all. like Kiwifund layabouts...Sky City Casinos...the list is endless.

Think BIG, not screw small. it might actually pay.

QE, made them multi millionaires and Billionaires....., QED.

So, Goldman says the housing values will crash, 40% chance of that happening in the next 2 years.
How is it wise to build more houses which even as they are being constructed may be losing value ? Unless pre sold like private developers do ?

Ze plot sickens

Not a 40% drop, a 40% chance of a crash, a crash being defined as an almighty drop of 5-10%... WTH? Seems like even the money people don't know what's going... that would be a first... no wait, there was that time in 2007.... nah, no one will remember that.,,

Thanks for pointing out the mistake, corrected now. But they have used the word 'bust', which is sure to send alarm signals.

I think there point was with the level of debt and size of mortgages a 5-10% drop will cause stress primary in the banking area will there will be mortgage sales and loss making sales.
and housing makes up a big part of the loan book so we will not ride through it unscathed this time.

I certainly cannot see what all this excitement is about - The Nats will hardly be able to build all the 34,000 if all goes well and they find the money and builder to do it ..etc, that on its own is questionable at this point -- Labour claims that that is BS and all empty claims and can't be done !! -- lol, Well they want to accomplish twice as much in the same time , so throwing around a bigger BS ... Nats are letting out small amount of details and prices and areas, Labour has practically no details and just "trust us, we'll do it" - Little is claiming that his patented idea was stolen by the Nats -- this is such a childish kindergarten attitude that puts people Off and can never be trusted...
Nat is likely to keep or trim the migration ( obviously this is contributing to the economy bigtime - Labour will shoot itself in both foots if they implement their immigration policy and won't have legs to stand on if they cut their immigration veins) .... and TAXing everything that moves will be their only resource to keep their voters happy for a while before they come after them with big sticks once unemployment hits 6%..

As if that proving the "denial" is more important than the FHB problem or sorting market prices,
Mr Little and his gang cannot be trusted to run a school let alone a country with this sort of rushed, ill thought policies and slogans that are not worth the paper written on them - all they want to do is regain power ( and sort things out later - she'll be alright policy) - any half brained person would like to see a well studied plan before voting for anyone ( or at least a projection of what could happen if houses or immigration numbers went down and by how much - simple consequence study) -- there is none of these convincing arguments - it all BS galore.
All we hear is repeating buzzwords and playing blindly to the tune of the ill informed voters !!
They dont even know what the correct definition of Investors is !!!

The party which comes up with more logical and feasible plans will get more votes ( the smart votes who want the country to advance, build on what we have achieved, and work on real solutions to the essential matters including housing ) ..the other parties who are just jumping around will only get the votes of their diehard cheerleaders.

this from the NZ Herald this morning:
http://m.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11857022

This is the laughable bit;
"Labour housing spokesman Phil Twyford said a housing bust could be just as bad as skyrocketing prices.He said the warning highlighted the consequences of nine years of housing neglect by the Government."
--- lol, REALLY??, he just conveniently forgot the GFC in 2008 and two earthquakes and a lot of crap that Labour left behind , just to mention few, all because of hoarding money, TAXing or spending it recklessly in their 9 years at the helm - and forgot what their negative gearing, immigration and CGT policies would surely BUST the market if they were elected in September --- that is the kind of BS that gets up people's nose and puts them Off this lot. they keep insulting people's intelligence every time they open their trap.

Again, it will be interesting to watch the polls going forward - that will certainly show the percentage of people who really want a change = Because the "Good" have left this profession, it will be either to keep the "Bad" Nats or change to the "Ugly" Labour/Green, at least that's how it looks so far from my end .

BTW, desperate FHBs who really want a roof over their head can buy 2-3 bdrms in Hamilton for $350,000 -$400,000 or less ( Heaps to choose from, some of which are modern and only few years old and some off the plans with 10% deposit ) commuting to Auckland from there on the expressway is a breeze (40min to Manukau city). And that is better than buying in Warkworth or Welsford or even Helensville for twice the price and spending 90 min in traffic.

Lets say Labour are hopeless or Winston is hopeless.

Cant be anymore hopeless then National, at least we know its supply with National and low wage migration until there are no jobs for kiwis at the lower end of the market. Hospitals and schools bursting at the seams.

So either stay as we are 70,000 plus migration a year, unlimited immigration through education or hope for the best. Im going to hope for the best, as it cant get any worse, or maybe it can but we will see, but Im willing to give someone else a chance at ruining the country. National has had 9 years and has done a fine job at creating a country thats not resembling the one I grew up in. Sad.

Insanity is "doing the same thing over and over again and expecting different results"?

I agree with you 100% Eco Bird, the problem is Labour supporters out weigh national supporters on this site 10 to 1, you only need to look at the number of "Likes" to see that.The fact is National are in again at the next election, Why ? not because they are great but because Labour cobbled together with a number of minor parties is going to be a nightmare. Heaven forbid I used to vote Labour, voted Helen Clark in TWICE but since she left Labour has been a dead duck and the poll numbers reflect that.

I don't know if that's true Carlos. While the commentators on this site certainly have a left-wing bias, I'm a disgruntled ex-National voter that's "liking" a lot of these posts. I agree that we may end up with a shambles, but I can't vote for a party that's caused so much damage with uncontrolled house price inflation and rampant immigration.

I'm a right wing supporter of free markets (within the parameters where they work). Problem is there are no right wing parties. The parties are all centre or have a left leaning bias. National are far left supporters of the concept of social welfare for the rich and driving inequality to make that happen. Labour are left believers but have no idea how to implement their ideas.

ACT are supposed to be a far right party but they don't even follow their own beliefs.

There are no real political choices. The only option is to change government to clear out all the old farts in the current Government who are just there taking up space. The incoming Government will discover all the dodgy things that the current Government are concealing and can clear house.

I would say I am right wing, a free market advocate. Within the proviso that Government should be small, a powerful fair referee, not a participant. The challenge to free markets we have is not the left though, it's the big business cartels who capture most of New Zealanders cash. National supports them. Energy, banks, and curiously government bureaucracies central and local. The last thing big business thieves want is a free market.
National is never going to tackle these problems, nor unfortunately is Labour.

One has to accept the system is rigged and move along......it doesn't matter who's hand is out after the loot.....it is all theft.......When the people wake up and realise their rights are worth something to someone else like a political party or parliament it will be too late......

When you post a message claiming that all who don't agree with National are Labour supporters, you obviously don't read comments. I would say 60% of those who have voted National in the past will not be doing so in the coming Election. Thankfully we have intelligent people of all political persuasions who dislike the path National has been leading us to for 9 years. Time for a change and no, I am not a Labour supporter.

TRUMP did it and it worked. Don't underestimate the power of promising change

Hi ECO BIRD,

How many of us are actively involved in consent process/infrastructure plans/actively giving up wasteful/ dangerous habits. When we honestly want a " good governement" we will get it
regards

Labour response is bang on ( though not a big fan of labour).

National has totally lost the plot. Election will humble them - must needed and also for good of NZ.Time for National to go.

but the alternative (Labour& Greens) shows all the signs of being just as clueless and possibly worse. I guess I can but hope those deserting National go TOP or at least NZF and one or both hold the balance of power.

... for a group of pacifists the Greens are amazingly crack marksmen at shooting themselves in the foot , every election ...

I would suspect that the wily old Kingmaker Winston Peters will be the big winner , when the political dust has settled after the 2017 general election .. ...

... keep a close watch on the baubles , steven , 'cos Winnie'll want the whole bagful this time around !

In order for large corporates to unwind the complexities of their lease commitments, the advisory and validation services offered by the likes of PwC, KPMG or E&Y may be necessary. In addition to its own lease accounting advisory services and white papers on the topic, Innervision also provides its global clients with a “unique” online lease management platform, LOIS, which takes automated or managed manual feeds on all live portfolio data, all the way through from new to the end-of-contract stages. Dissertation Part or Chapter

Wow 35000 over next few years. Assuming that they manage to it than each year 3500 and immigrants 70000 still supply will be a problem.

SO

Important to tackle Demand as supply will always be a crisis.

Wonder ? Why government announces any such policy just before election. That means they too know what they should be doing but ignore it and do now, not for people welfare but their OWN welfare - Vote - Power.

Anyway it is too little too late.

No amount of bribe will help as 9 years is too long a time and now is time for change.

Lining up to have a crack today with a honest too goodness champion of the people opinion is Brian Rudman with his piece in today's business section of the NZ Herald!

Yep Rastus. Rachael Stewart nails it. Tourism. Quantity over Quality. How to kill the golden goose.

This would be the same herald that publishes opinion pieces by Hosking and Smalley that opine that any cut in immigration would be an economic disaster as they catalogue the effect it has had on their privileged lifestyles - I'm not sure Mike getting his Ferrari valeted cheaply or Rachaels personal trainer and manicurist are essential for the NZ economy

Rachael points to the misalignment of bureacracy and industry.
Government employees are doing what they are told but dont know what they are doing.
Goverment needs to step back to policy and get out of industry, name your own industry...

Goodness both the Nats and the Labs are brainless. The scary thing is they think we are as well by expecting us to believe them. The government has never delivered the sort of homes and the number of homes where we want them. The private sector has always done that. The problem is the politicians have put in place a tax and regulatory environment that restricts and inhibits building what the market wants. Some of those restrictions are confounding HNZ as well. I say admit you got it wrong. Restore the tax system to make it profitable to supply new rental housing and there will not be a shortage and lack of choice.

What's to stop the 60% of 34,000 houses being bought by foreign investors and being left empty?

Ultimately what I think we need is a ravamp of regulation and a significant culture change...

Carlos - have you ever heard of the saying: 'You can fool all the people some of the time, and some of the people all the time, but you cannot fool all the people all the time.' (Lincoln)

John Key was a master at fooling voters. Bill English and the new look National, not so much.