Property madness knows no bounds
The housing crisis in Auckland is not getting any better, and watching questions to government ministers in parliament this week was a frustrating exercise, as concerns from MPs were passed off, dismissed and parried.
I think government is lucky that Auckland’s residents are not on the streets in furious protest at the ludicrous situation emerging. Plots around my own home on Auckland’s North Shore sold for three quarters of a million dollars earlier this year. Now, the houses are being built and they are palatial, appearing to fill up nearly every square metre of those plots.
It’s evident too that some haven’t been built as homes for the buyers themselves. Already a couple are up for sale. I don’t even want to enquire about the price tags, but my guess is $2m or more. The contrast between those glamorous properties and the accommodation many Aucklanders have to endure is staggering and unethical. Is there such a thing as sustainable housing policy? If so, we desperately need it now.
And it’s not just the top end of the market that is running away with itself. The pace of price rises across the board is leading to some farcical situations. Unfortunately, few of those desperate to get on the property ladder are laughing.
New data shows that almost 200 Auckland houses have sold for at least twice their current council valuations in the past year alone.
The valuations are used by councils as part of their ratesetting. In the past they have been useful for buyers needing some sort of guide to what they can afford. It is hard enough with many properties advertised without an asking price.
The issue is they are only updated every three years. Auckland’s were last updated in 2014, Wellington’s in 2015 and Christchurch’s in 2013. Homes.co.nz data shows that 190 in Auckland have sold for more than twice their CV in the past year, 20 in Christchurch and four in Wellington.
They are dating too fast – another signal the market is out of control. Read more about property madness from reporter Susan Edmunds on Stuff.co.nz and in Sunday Business p6-7.