New Zealand's Treasury secretary Gabriel Makhlouf is rejecting a capital gains tax to reduce demand in the Auckland housing market, saying it's a supply-side problem.

“We need to build more houses to meet the need we’ve got,” he said on TV3’s The Nation programme. This week Real Estate Institute figures showed Auckland’s median house price jumped 13 per cent to $720,000 during the past year. Excluding Auckland, the national median price increased just 1.4 per…