New Zealand Reserve Bank Head says it could take some time to bridge the gap between Auckland housing supply and demand.
A quite aggressive target has been set it add an additional 39,000 houses to the Auckland region over the next three years but that may fall short of meeting the demand.
Essentially the decision to kick start the housing development has come a little late and supply of housing in Auckland may not meet demand for at least five years.
With less construction firms operating and fewer trained workers the 39,000 new housing target is tough. Christchurch rebuild is also stretching supply of able firms and we hope this does not open the door for ‘cowboy’ operators to step in.
Leaky buildings is set to cost New Zealanders upwards of $11 Billion. We can not afford more shoddy workmanship in the housing sector.
Mortgage rates are still at 50 year lows so that is increasing the value of Auckland properties and property investors are often in the best position to secure properties as soon as they come onto the market.
PropertyTutors run a property mentoring program in Auckland and Wellington and the demand is high. With supply of housing in Auckland not improving anytime soon competition for existing properties is very high. The good new for many home buyers is many of the property investors in the PropertyTutors mentoring program sell refitted properties suitable for the low to middle end of the market.