Thousands of new homes to ease housing supply
The market will note thousands of new houses are being built in Auckland in the next five to seven years, according to Finance Minister Bill English.
He's betting new supply is the answer to the problem of a hot Auckland housing market.
"In the next 12 months the government will be procuring the capacity to develop thousands of houses," he told TVNZ's Q&A program today.
He says that for the last 15 to 20 years planners in Auckland stopped the city growing "up and out".
The government is working flat out on "the supply side" and it's making progress, he says.
The next steps are to go to market for procurement of the government-owned land so up to 8000 houses can be built in Tamaki.
The government will also develop a pipeline of other large procurements "so the market can see the government building thousands of houses in Auckland out over the next five to seven years", he said.
The Government and council-owned Tamaki Redevelopment Corp is overseeing existing state houses in the area and developments of both social and private housing via partnerships.
New lending restrictions kick in for Auckland residential property investors on November 1.
Under the new loan-to-value ratio rules borrowers will generally need a 30 percent deposit for a mortgage loan secured against Auckland rental property.