Affordable ‘failure’
Fewer than 100 affordable houses were sold to the public under measures to boost Auckland’s supply.
Measures to improve Auckland’s supply of affordable housing have been called a ‘‘dismal failure’’.
The Auckland Council’s Planning Committee on Tuesday received an update on the provision of affordable housing in the city’s special housing areas.
A report to the committee revealed that fewer than 100 ‘‘affordable’’ houses destined for the free market were built under the Auckland Housing Accord, which ran for 31⁄2 years from 2013, in conjunction with central government.
It had a target of 39,000 new sites and dwellings to be consented across Auckland.
Council data shows there were 3157 houses completed in the special housing areas, of which just 580 were classified as affordable.
Of those, 482 were ‘‘retained affordable’’, largely destined to be social housing.
Just 98 were available for sale to the wider public, 30 of which were in Hobsonville Point.
Over the period the accord was in place, the Auckland median house price rose from $530,345 to sit at $817,119 now, the committee was told.
Councillor Chris Darby, who chairs the Planning Committee, told media the initiative had failed on its aim to deliver affordable housing.
Property market analyst Rodney Dickens said the average section price in Auckland had doubled since 2013, too.
‘‘[The council has] done nothing to get down land costs, to get down development costs,’’ he said. ‘‘They’ve sped up processing a bit but they haven’t made progress in the areas that matter.
‘‘They’ve effectively just sped up to some extend what can come on to the market.’’
In most cases, he said, the special housing areas were going to be developed anyway.
‘‘Increasing supply doesn’t impact on price if you don’t change the cost of production … There’s something fundamentally rotten in Auckland, and Hamilton and Tauranga now have got the same disease.’’
He said that, had the initiative been successful in keeping a lid on section prices, the city’s property market could look quite different.
‘‘If the Auckland section price was still what it was in 2013 the average house price would be over $200,000 less.’’
Available tracts of land were in the hands of too few people, he said, which allowed an element of price setting.
But property market commentator Olly Newland said the criticism was unrealistic.
He said too many people expected houses to ‘‘grow like mushrooms out of the ground’’.
Newland said most people were used to seeing houses built within an hour’s scheduled television programme and could not imagine what it was like to build a house from scratch.