Sunday Panel: Is a sharp fall in house prices needed to correct the market?

Author
Newstalk ZB,
Publish Date
Sun, 28 Mar 2021, 12:41PM
(Photo / Getty)
(Photo / Getty)

Sunday Panel: Is a sharp fall in house prices needed to correct the market?

Author
Newstalk ZB,
Publish Date
Sun, 28 Mar 2021, 12:41PM

The Government has unveiled its plan to try to fix New Zealand's housing crisis with specific assistance for first-home buyers.

The package, revealed by Prime Minister Jacinda Ardern, also includes $3.8 billion to boost the number of houses being built and other measures to make life harder for property speculators.

It comes as New Zealand property prices continue to hit record highs, outstripping pre-Covid levels by $130,000, OneRoof figures show.

The nationwide median property value was at January 30 was $750,000 - surging 13.8 per cent in the nine months since the Covid pandemic hit our shores.

However, the package has sparked backlash from all corners - with first-home buyers saying its not enough to get them on the ladder, while landlords are raging over what it means for them. 

There are calls for more drastic change - with one NZ Herald commentator saying that a sharp fall in house prices is needed

TVNZ political reporter Katie Bradford and Newstalk ZB and Gold host Andrew Dickens joined Francesca Rudkin to discuss why the package doesn't do a lot for most people, and how a fall in house prices could help the economy. 

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