However, it appears the land -- owned by the taxpayer -- will be sold by the Government to developers with some form of covenant to prevent it from being landbanked.
But why does the land have to be sold at all? A starting price of $550,000 for a home will include the cost of the land. But what if the cost of a plot of land was taken out of the equation? If the Government were to hold on to it -- and lease the land -- then house prices could be substantially reduced.
Yes, the homeowner would have ongoing ground rent payments to the Government, but the cost of entry to owning a home would be lowered. If Smith really wants to see affordable homes built, he needs to consider this option before selling off our land to developers.
Apartments
Meanwhile, the future of housing in Auckland appears to be mainly in the hands of apartment builders as consents for these types of property reached a seven-year high in April.
According to Statistics New Zealand, building consents were issued for 467 apartments with all of them to be built in the Super City.
"Consented apartment numbers often fluctuate, but have returned to historical average levels in the last couple of years, following four low years," says Neil Kelly of Stats NZ.
"Consents for houses and townhouses are also at historical average levels, while retirement village consents have reached record highs over the past year."
Though the top-line figures look good, the underlying trend is not so positive. In April, 2112 new dwellings were consented across the country, that's up 1.4 per cent from the same month last year. However, the seasonally adjusted number fell 1.7 per cent in April compared with March, and -- says Stats NZ -- the trend is easing.
Property Report
Look out for our Property Report on Monday, free with the New Zealand Herald. The quarterly publication covers the Auckland real estate market from all angles and includes the latest property prices from QV.co.nz for all North Island suburbs.
There are reports on how migration is affecting property prices, advice on getting your first home and a look at Housing Minister Nick Smith's housing plan. And find out why it's incorrect to call Auckland's rampant property market a bubble. It's just business as usual. This edition of the quarterly report is not to be missed. Hear this week's podcast:
