The New Zealand Property Council has waded into the debate about the unaffordability of housing in Auckland, saying apartments are pre-selling in the city for more than $NZ800,000 ($A752,000) each.
Council chief executive Connal Townsend says such apartments are out of financial reach for many Kiwis.
The council highlighted the issue of the unaffordability of housing in New Zealand’s largest city as it emerged singer Lorde paid $NZ2.84 million for her first home last year, a 182sq m villa on a 447sq m section in inner Auckland.
She’s expected to move in this year after renovations, the NZ Herald reports.
The NZ Herald also reports UK rich lister Jamie Palumbo, a member of the House of Lords and founder of the Ministry of Sound, has New Zealand government permission to buy a waterfront property on Waiheke Island near Auckland for $NZ7.3 million.
The council says owning a house in Auckland is becoming unattainable for the average family.
It says New Zealand is the most expensive housing market in the world on a price-to-income basis, according to ratings agency Fitch, and it’s concerning.
“We have a planning system in crisis with excessive restrictions on development which are hampering delivery efforts,” Mr Townsend says.
“Add to that burdening regulations and a construction sector unable to meet new housing demand, and we are fast approaching the point of no return.”
He says apartments in Auckland are currently pre-selling at more than $NZ800,000 each.
“Considering the Reserve Bank lending rules for mortgages, these apartments are out of financial reach for many Kiwis.”
Still, Fitch said the pace of house-price growth should decelerate in Australia and New Zealand this year.