It calls on government to rethink law amendment
Despite the New Zealand government’s efforts to cool down the housing market, ACT New Zealand (ACT) expects to “see the housing market continue to go crazy.”
ACT Deputy Leader and Housing spokesperson Brooke van Velden said the political party expects a “crazy” future for the housing market, mainly due to over 100,000 new residents potentially joining the first-home buyer market and thousands of immigrants on temporary work visas fast-tracked for residency after a major immigration policy announcement by Kris Faafoi.
“While it’s great news for people who’ve chosen to make New Zealand home, and local businesses, it will increase pressure on the housing market,” van Velden said.
“More people will be competing to purchase homes at a time when there is record low housing stock,” she continued. “I’ve heard that mortgage brokers are being flooded with emails and phone calls from people on work visas asking how they can purchase a property once their residency application is approved.
“Until migrants have residency, they are unable to own property.”
Read more: ACT welcomes National Party’s acknowledgment of housing crisis
While the New Zealand border has been shut, house prices have skyrocketed – with the average house price exceeding $1 million and increasing by 27% since September 2020 when migration was at an all-time low, according to ACT.
Now, the party expects prices to skyrocket.
ACT is calling on Housing Minister Megan Woods to answer what preparation or advice she sought before the decision on the immigration policy was made.
“The government should have been asking four years ago, ‘how do we create an environment for investment and development?’ so that more homes would be available to New Zealand citizens and residents to buy. By failing to ask the right question, it has failed to deliver on the very thing New Zealand needs it to – meaningful change so New Zealanders can build more homes,” van Velden said.
