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> NZ has the 'least affordable' housing, Apparently..
ScottWoz
post Jan 20 2008, 08:10 PM
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I've just read this:

"New Zealand houses are now the least affordable in the world, according to an international survey.

New Zealand was the only country of the six surveyed where all of the cities ranked were rated severely unaffordable.

However, of the list of 227 cities, the top five were in the United States, with the worst being Los Angeles.

Of the New Zealand cities looked at, Tauranga is now the country's most expensive ranked at 20th of the 227 cities studied, followed by Auckland at 31st, Christchurch at 34th, Hamilton at 40th and Wellington at 46th."

Interesting stats, but really, you can't expect to live in paradise for nothing can you?


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wakingdream
post Jan 21 2008, 10:11 AM
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Somehow it's not really that surprising as NZ seems like an idyllic place to live.

He says the affordability of housing is overwhelmingly down to the extent to which governments place artificial restrictions on the supply of residential land.

I'm curious about the above. The artificial restrictions part. Artificial restrictions to limit the supply of land zoned for residential, which would inevitably drive prices through the roof, no? Is that to slow down an overly ambitious housing market?


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hdh
post Jan 22 2008, 10:31 PM
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QUOTE(wakingdream @ Jan 22 2008, 04:11 AM) *

I'm curious about the above. The artificial restrictions part. Artificial restrictions to limit the supply of land zoned for residential, which would inevitably drive prices through the roof, no? Is that to slow down an overly ambitious housing market?


Nah, it's got more to do with keeping urban sprawl under control - Auckland in particular is geographically huge: despite having only 1.3 million or so people it's not much smaller than LA or London.

Don Brash, by the way, is not exactly unbiased here - although the article lists him as "former Reserve Bank chairman" he's more recently "former leader of the National (i,.e conservative) Party & Leader of the Opposition". The whole "excessive government restrictions" thing is a political football he's taking the opportunity to kick around.

I'd say house prices here actually have more to do with tax policy (investment in rental property has massive tax advantages over, for example, the sharemarket) and the long duration of the housing boom making people think rising house prices make them a "sure thing" investment, so they're willing to pay silly money.

Plus NZ house prices aren't actually massively high in absolute terms - "affordability" sucks because our incomes are among the lowest in the developed world. Which means there is also a tendancy for prices to be be driven up by well-off immigrants (or expat Kiwis returning home, which they almost all do eventually).

Be interesting to see how things change over the next year or so - the housing market was already flattening off due to high interest rates, and the US credit crunch will have an effect.


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rbisset
post Jan 23 2008, 04:44 AM
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Amazingly Mandurah is the 6th least affordable place in the world according to that list.....


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ScottWoz
post Jan 23 2008, 06:43 AM
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Mandurah? No way!


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wakingdream
post Jan 23 2008, 08:49 AM
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QUOTE
I'd say house prices here actually have more to do with tax policy (investment in rental property has massive tax advantages over, for example, the sharemarket) and the long duration of the housing boom making people think rising house prices make them a "sure thing" investment, so they're willing to pay silly money.


Makes sense. Thanks for clearing that up hdh.Also didn't know NZ incomes were so low.....


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ScottWoz
post Jan 23 2008, 03:51 PM
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Ridiculously low, which is why so many Kiwi's come over here to Aus to earn the bucks. Dave's right though, they inevitably go back. Why wouldn't they? It is heaven on earth. I'd be doing the same if only I had a damn passport..


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fuzzyhatjon
post Feb 13 2008, 09:07 PM
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I still think Alberta has some of the least affordable housing I've seen.

Tauranga in New Zealand is pretty pricy in places. Mostly the Mount (home for 4 months) due to tourists (from Auckland, and abroad) buying places to "live" for the summer months. The "locals" aren't big fans of "seasonal citizens", haha.
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ScottWoz
post Feb 15 2008, 08:18 PM
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I don't think anyone is..


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phoenixspirit
post Feb 25 2008, 02:32 PM
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When I lived out in New Zealand it wasn't expensieve but you got what you pay for.

The only trouble being for us is when we sold the house, is we made a loss of about $15,000. I think we chose a very bad year in the market to go back home, but I have to say the affordability of the houses and what you got for it was far better than compared to the UK based on our wages (Even if we didn't have double glazing. A luxury I never appreciated until then). I lived in Auckland though, so perhaps it was different elsewhere.
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starlagurl
post Feb 27 2008, 11:12 AM
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From another related article:

"Barfoot & Thompson says its average sale price for 2007 was $538,478, compared to $480,738 for 2006."

Wowie...average price in Ottawa...$255,889 according to Keller Williams...

http://www.agentinottawa.com/1956_-_2006__...age_491704.html


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