LANDBANKING OR LACK OF GOVERNMENT INITIATIVE

The front page story that appeared on today’s DomPost (28 March 2017) highlighted the city’s escalating housing crisis.

I had the privilege of being part of four open homes in the Northern Suburb last Sunday and observe prospective buyers in their quest to find that perfect house.

There is still a huge demand for houses in Wellington and one of the pertinent observations I made during the open homes was how the prices have appreciated exponentially even in the most unlikely location.

A three-bedroom house in the Northern Suburb that could go for $400,000 is now going for $500,000, an excess of $100,000.

Often house prices are fuelled by supply and demand. As is the case, a private developer does not have the funding capacity to build houses in large volume. So to make housing more affordable and to address the housing crisis, we require major investment and intervention by the government to fund infrastructure and development of houses.

You can’t expect a private developer to sell a piece of land now only to discover later that he could have sold it for a higher value nine months down the road. Most private developers would be looking at a higher profit margin so there’s no point in placing the blame on them.

I hope the Mayor and the council would also look into reviewing the consenting process and explore ways to expedite the process.

My personal experience last year with the council left me waiting for more than 60 days for my consenting process to be approved instead of the usual 20 working days. The consent was not for the “Taj Mahal”, just a normal house in the Northern Suburb.

In my personal opinion the housing crisis is the result of failed government policies and a local council that lacks direction and expertise in resolving this crisis that’s been festering for too long.