Home value slow-down not a slump: Robertson
Finance Minister Grant Robertson says there is still a housing crisis, and despite any slow-down in the Auckland market, it is full steam ahead.
He does not believe there will be any slump in house values which could cause a rethink of Labour’s housing polices.
There were elements of change in the way the housing market was operating, particularly in Auckland over the last little while.
“But we still have an enormous shortage of housing in Auckland,” he said — a 45,000 shortfall in June according to the Ministry of Business Innovation and Employment.
Is it still a crisis? “Yes it is,” he said. “And we’ve got a big job of work to do there.”
The number of affordable homes needed had not been built. The selloff of state houses had reduced stock.
“We’ve still got issues around speculation. We are starting to move and crack down on those and we’ve still got a massive issue with homelessness in New Zealand.
“So no, that crisis hasn’t gone away even if some of the conditions within one particular part of the market have changed.”
QV figures this week showed that house values have dropped in Auckland for the first time in six years — but the average value for the Auckland region is $1,038,722.
Nationally the growth in housing values has slowed to 3.9 per cent to the year ended October, the lowest rate of growth in five years.
Among the Government’s priorities in the first 100 days is to expand the brightline test on investment residential properties to those sold within five years instead of two years. It also plans to abolish the right to offset losses on investment properties against other income.
Asked if he would rethink properties for house-owners if there was a slump, he said he was not sure a slump was likely.
“You hear from most commentators that the most likely thing is a slow-down in price increases rather than a slump in value.
“Our goal is not to do that. Our goal is to moderate those increases and to do the things we need to do on both the supply and the demand end to make a housing market that is actually working.”
Much work was needed to address the failure by the last government to support first-home buyers, he said.