Saturday, 2 October 2021

Housing market hasn’t seen nothing yet


“With over 100,000 new residents potentially joining the first home buyer market, expect to see the housing market continue to go crazy,” says ACT Deputy Leader and Housing spokesperson Brooke van Velden.

“Thousands of migrants on temporary work visas will be fast-tracked for residency after a major immigration policy announcement from Kris Faafoi. While it’s great news for people who’ve chosen to make New Zealand home and local businesses, it will increase pressure on the housing market.

“More people will be competing to purchase homes, at a time when there is record low housing stock.

“I’ve heard that mortgage brokers are being flooded with emails and phone calls from people on work visas asking how they can purchase a property once their residency application is approved.

“Until migrants have residency they are unable to own property.

“While the border has been shut, house prices have skyrocketed. The average house price now values over $1 million, and increased 27 per cent since September 2020, when migration has been at an all-time low. 

Prices will increase higher as people locked out of the market through not having residency will now enter it.

“Housing Minister Megan Woods needs to answer what preparation or advice she sought before the decision was made. 

“The Government should have been asking four years ago, ‘how do we create an environment for investment and development?’ so that more homes would be available to New Zealand citizens and residents to buy. By failing to ask the right question, it has failed to deliver on the very thing New Zealand needs it to – meaningful change so New Zealanders can build more homes.

"ACT would remove barriers for build to rent and share GST with local councils to help encourage building and infrastructure." 

Our housing plan can be found here