Auckland’s growing population means there is a shortfall of between 15,000 to 25,0000 properties needed to house its inhabitants. But with only 7,500 annual consents being approved for new buildings in the region and 10,000 actually needed to stop the housing shortfall, the Reserve Bank Governor suggests Auckland needs to build upwards.
Graeme Wheeler has said that although the fast-track consent process started with the introduction of Special Housing Areas has shown positive results, the building restriction height within the inner city needs to be looked at.
Government Seeks Help With Boosting Auckland Property Developments
Finance Minister Bill English is seeking the help of the Tamaki Redevelopment Co to help grow the number of affordable properties available in the Tamaki suburb.
Set up in 2012 by both the Auckland Council and central government to boost the supply of housing and rejuvenate the suburb, the Tamaki Redevelopment Co is predicted to build around 7500 homes within the next decade. However only 5000 are going to add to the number of properties available in the suburb, as some old buildings are also going to be demolished and others removed.
Mortgage War Aids Property Shortage
Banks have entering into a heated battle with each other over who can offer the lowest mortgage interest rate, which is doing nothing to help boost the shortage of properties within the Auckland region. Buyers are using the lower rates as a chance to borrow more to secure their dream property, which continues to help raise the average asking price of properties.
The lower interest rates mean that borrowers are more likely to compete with other buyers in a bidding war, a common occurrence because of the short supply of available affordable housing. Then with the new 10 year fixed interest rates also having just become available in New Zealand, borrowers are going to have more certainty than ever about what they can afford to borrow and what their regular repayments are going to be.
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