What Impact Will a Labour Government Have on the Auckland Property Market?
This video looks at the impact the change in political government could potentially have to the housing supply and demand issue facing Auckland at the moment.
Forecasting and predicting the impact over the short to medium term is challenging but what I can provide is the hard and fast facts. There is a supply issue currently facing Auckland. Auckland has approximately, according to media, a shortfall of 35,000 houses. I would extend this beyond 35,000 to over 100,000 houses when we look at our undersupply for the last 20 years.
Further to that, Auckland is still growing, currently growing at around 2.9%, or 50,000 people coming here every year. While Labour is looking to put immigration caps on, one of the biggest challenges they will face is trying to stem the tide of expat Kiwis coming back to live in Auckland.
The other factor to consider is how desirable Auckland is to live. Auckland is one of the most desirable cities in the western world. It’s constantly rated in the top five cities in the world. That makes it an attractive city to live in and invest in.
The facts are:
- Auckland is growing
- Auckland’s house prices have never, in the history of Auckland, regressed substantially
- Demand for housing is going to continue unabated.
Whether the Labour Government can fix that is yet to be seen but it is an interesting time for you as a landowner and developer.