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Home / Business / Business Reports / Project Auckland

Project Auckland: Two faces of the housing market

NZ Herald
29 Oct, 2015 04:00 PM3 mins to read

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Overall, Auckland's liveability has increased 19 per cent over the past five years, according to the Scorecard measurements.

Overall, Auckland's liveability has increased 19 per cent over the past five years, according to the Scorecard measurements.

The fall-out from the hot Auckland housing market has created contrasting impressions on the latest Mayoral Scorecard. The housing impact sits at the top and bottom of the rankings.

Housing affordability has worsened by nearly 23 per cent but Auckland Council has responded to the short supply of homes by issuing a record number of consents for new dwellings during the past financial year.

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Auckland's affordability index has increased from a base rate, relative to the rest of New Zealand, of 127 in 2011 to 156 in 2015 making houses further out of reach for many first homeowners.

But the council issued 8300 permits in 2014-15 compared with 3394 in 2010-11 an increase of 145 per cent. The permit activity will lead to increased residential building.

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Auckland Mayor Len Brown says it takes up to a year, following the issuance of permits, to get all the building up and running.

"We have consented a huge increase in brownfield and greenfield development and we need the sector to be building at a much greater pace and higher focus."

Brown says the housing affordability will be eased by building a range of housing types with price points that enable first homeowners to get into the market.

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He believes a price point is $500,000 where a couple on two incomes can save the 10 per cent deposit of $50,000 and move into their own home.

"Maybe they have to start off in an apartment or townhouse in a lower-priced area that's how we started off, not at the top with a house in Remuera."

In its drive to make Auckland a more liveable city, the council has done well on developing more cycleways and walkways, eradicating graffiti, increasing the spend on local roads and the number of public transport trips, and boosting visitor guest nights.

Employment, particularly for young people between 15 and 24 years, has improved and the city now has a workforce of 791,500, up from 708,100 in 2010-11.

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The regional economy (GDP per capita) has grown 14 per cent over the past five years, from $48,488 to $55,426.

Traffic congestion remains a worry.

The time lost to congestion per kilometre travelled is now 37 seconds, slightly improved on the 41 seconds in 2010-11.

According to the Scorecard, the council has increased its investment in cycle and walkways by 49 per cent, spending $12.2 million in 2014-15 and $8.2 million in 2010-11.

The number of public transport (bus, train and ferry) trips has jumped from 66.65 million in 2010-11 to 80.07 million in 2014-15 an increase of 20 per cent.

There is less graffiti in the city, with 92,471 items being removed in 2014-15 compared with 124,775 in 2012-13. Total visitor guest nights have risen to 7.13 million, putting pressure on the availability of hotel and motel beds, compared with 6 million in 2010-11.

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Overall, Auckland's liveability has increased 19 per cent over the past five years, according to the Scorecard measurements.

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