All speakers look to the net migration of Kiwis to and from Australia as a major driver of housing demand.
Dr Nick Smith, the Minister for Building & Construction, stated that the net number of people coming to NZ has increased from 12,000 four years ago to 70,000 today – and 80% of that is citizens returning form Oz.
The general view of the conference was that Australia has major economic woes and that trend of returning Kiwis will continue.
To show how much housing prices have grown, in the past 25 years CPI has increased by 71%, construction costs by 73% and housing prices 350%. A block of land (or ‘section’) in Auckland has gone for $100,000 to $450,000.
To take the pressure off, the government is stepping in, particularly in Auckland, and enforcing sufficient releases of land to “create a 20% oversupply”.
The Government is also forcing government bodies to release its land holdings which the Government will develop in partnership with the private sector. From the Minister: “Partnering with the retirement village sector – the door is wide open”.
Auckland CBD construction is also booming. There are currently 70 cranes towering over the city.