Prime Minister Jacinda Ardern says she wants to ensure first home buyers can get into the market after it was revealed this morning that house prices have increased nearly 20 percent.
House prices have increased 19.8 percent year-on-year with the median now at $725,000.
Ardern this afternoon said figures show an increase in first-time buyers in the market since 2017, but that investors in the market had remained the same.
“Obviously we want to ensure our first home buyers can get into the market that is something that is top of mind for us…”
“It just cannot keep increasing at the rate that is,” she said about the rising prices.
And the Greens also realise this but want the Government to go further. From Craig McCulloch at Radio New Zealand:
Greens co-leader James Shaw has lashed out at Labour over rising house prices, labelling it “irresponsible” for refusing to entertain a tax on capital gains.
Labour leveraged the housing crisis to great effect while in opposition, but prices have continued to soar since it took power.
In the past year alone, New Zealand’s median house price has rocketed, climbing almost 20 percent to reach a record high $725,000.
Speaking to RNZ, Shaw said the steep climb was being driven by the Covid-19 response and yet Labour had not done anything to mitigate it.
“It incenses me,” Shaw said.
“You’re getting these massive capital gains occurring as a result of the stimulus package and yet there’s no action from government to try recover any of that or to mitigate it in any way.”
This requires urgent action. Dare I say it but Labour needs to reconsider the introduction of a capital gains tax. LVRs for everyone but first home buyers need to be introduced. And favourable tax treatment needs to be further reviewed.
And get on and build new houses. Lots and lots of new houses, good quality affordable houses that people can raise families in, just like in the good old days.
Otherwise we are going to further enrich Australian banks and their shareholders by borrowing more and more money from them to buy the same houses from each other at higher and higher costs. And we will be an interest rate increase away from devastation for the young who have had to borrow large amounts to buy modest houses in a white hot housing market. And live in a country where there will be a clear class distinction between those who own land and those who do not.