The OECD’s latest report on New Zealand shows the danger to the rest of the economy from constricted land supply in Auckland, says BusinessNZ.
Chief Executive Phil O’Reilly said Auckland’s rising house prices were constraining the Reserve Bank’s ability to reduce interest rates and tomorrow the Reserve Bank would most likely keep the OCR on hold rather than drop it, largely because of inflationary pressures in Auckland.
He said there was no doubt inadequate land supply for housing in Auckland was a key factor, and this had to be addressed.
“It is essential that Auckland residential areas are allowed to expand both upwards and outwards. The current constrictive Metropolitan Urban Limit needs to be loosened, and planning and consenting functions made fit for purpose.”
Contact Phil O’Reilly 04 4966552 or Kathryn Asare 021 555 744
Email:
