Whaleoil says Auckland is set to be labelled one of, if not the, most expensive cities in the world.
BAD NEWS COMING FOR LEN’S CLAIMS OF MOST LIVEABLE CITY
On Monday the Demographia Housing Affordability index will be released and the rumour floating around is that it is looking pretty bad for Auckland, which has slipped substantially to become one of the most expensive cities in the world.
While immigration pressure is partly to blame, the fact is that this is going to be very bad news for Auckland Council and for the National Government.
What is worse is that property industry big wigs around Auckland are openly saying that Auckland is about to run out of sections to build houses on.
Back in 2012 the Government and property officials counted the available sections Auckland at around 4,000.
That has now shrunk to well under 500 sections.
In a city where 20,000 dwellings need to be built every year, that’s a train wreck in the making. And Nick Smith is tied, ironically, to the rails that the train runs on.
Affordability is now out of control – but it’s about to get a lot worse. Immigration is still high and demand is massive. Interest rates are at a record low and employment and manufacturing are cruising along well.
With the Chinese about to appear back in the market after Chinese New Year in a few weeks time, you can see the writing that’s on the wall.
And it’s all Auckland Council’s fault.
Len Brown’s nightmare vision of making Auckland like every other city in the world by cramming everyone into the centre hasn’t worked. Instead of making the city more liveable it has made it more unaffordable. By restricting land supply in the hope of forcing everyone into ticky tacky houses and inner city apartments using the atrocious and undemocratic Auckland Plan, Brown and his cronies are solely responsible for driving the price on housing out of reach for most, but especially the young.
Every year since the advent of Brown’s Auckland the number of houses being built has failed to meet the annual target of 20,000 by a huge margin. And every year the targets aren’t met means the price of the remaining stock has increased as demand outstrips supply.
Nick Smith was patting himself on the back in parliament saying according to projections 36,000 homes will be built in Auckland during the 2014-2017 parliamentary term. That’s only just over half what’s required and far less than half when the cumulative arrears is taken into account. And that’s projections not reality. As Whaleoil points out there are simply not enough sections to be built on to make any difference at all.
What rising house prices do is increase the amount of money he extracts from existing ratepayers in Rodney and Pukekohe to pay for his vanity projects, the CRL and useless cycleways, in the inner city, to please the UN Agenda 21 lobbyists in his planning department.
Brown, Hulse and their cronies have been a disaster for Auckland. Gough won’t be any better if his big spending plans are anything to go by. Auckland needs a Mayor who will bring back financial accountability and fiscal responsibility. Someone who understands economics, can balance a budget, and will meet the demands of the people as opposed to the demands of planners. Perhaps Auckland needs Victoria Crone.