From the New Zealand Herald:
The house-building sector has welcomed the Government’s moves to solve the housing affordability crisis, saying it could be a big boost to the multibillion-dollar industry.
Philip King, Fletcher Building’s investor relations manager, said freeing up land was the key.
“Any moves that will facilitate greater land availability for new housing construction, particularly in the Auckland region, are welcome,” King said.
The Government announced yesterday that it would put a six-month time limit on councils processing consents for medium-sized projects, including housing developments, as part of a range of measures to make homes affordable.
While it does appear that there is no ‘quick fix’ for housing affordability at least the government is tackling the issue and taking some positive steps in the right direction.
Personally, I think it will be interesting see how things pan out here in Canterbury with large quantities of sections coming on stream over coming months. It is predicted that around 20,000 sections will be freed into the local Canterbury market. Now that is a lot of land and literally new communities!
While it is difficult to predict the actual effect that this will have on both land and building costs I do question whether demand will actually be as high as what is expected. I guess the big question is just how many of the earthquake displaced have already purchased? From experience I have found a lot of the post quake purchasers have gone and bought existing homes once cashed up with their insures. I think the jury is still out on this one – will we see a building boom or will we have a glut of land, I guess time will tell?