• A wave of housing building will not lower Auckland house prices; in fact it will actually keep them from falling.

That’s the view of Westpac acting chief economist Michael Gordon, who says far from causing house prices to crash, new houses were needed just to “justify the prices that people are already paying for land”.

Gordon said Auckland land prices had factored in the possibility that apartments and denser housing – “intensification” – would soon be allowed in some areas.

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Westpac acting chief economist Michael Gordon: land values so high that they now need to be justified.

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