Bindi Norwell

PHOTO: Bindi Norwell, Chief Executive at REINZ 

The Real Estate Institute of New Zealand (REINZ) is today calling for the government to review the thresholds for the home start grant following the rapid pace at which house prices in New Zealand have grown.

In the last 12 months, median house prices across the country have risen by 20% which now means that only 33% of properties in New Zealand* are below the threshold to be eligible for the home start grant down from 40% in June.

Bindi Norwell, Chief Executive at REINZ says: “The Home Start grant is a great initiative from Kainga Ora and anything that helps first time buyers to get onto the property market is to be welcomed. However, with house prices having risen by 20% over the last year alone, and with median prices in Auckland hitting the $1 million mark for the first time, it’s our view that the caps should be reviewed in order to help first home buyers.

“The latest house price rises have meant that only 33% of properties sold are now below the threshold down from 40% just 4 months ago,” she continues.

“If you’re in Queenstown-Lakes, Porirua City or Wellington City, less than 10% of properties selling in the current market are below the local thresholds making it extremely difficult for first home buyers in these areas. It’s not much better in Auckland, Kapiti or Hamilton with 12%, 13% and 16% of properties respectively being eligible for a home start grant.

“If you’re in Christchurch City or Waimakariri District, then you’re in luck – as more than 50% of properties sold in those areas are eligible for a Home Start Grant,” she continues.

With the significant prices rises seen across most part of the country, REINZ would also like to see the RMA reform becomes a priority for the new government

“If we can put the ‘ambulance at the top of the cliff’ and address some of the wider barriers to being able to build at speed and scale, such as the RMA, then hopefully that will go some way to starting to solving the shortage of supply that we’ve had for a number of years now,” concludes Norwell.

 

Table 1: showing what percentage of houses in an area are eligible for the Home Start Grant (including existing properties and new builds – for the 12 months ending October 2020)

Area No Yes
Auckland 88% 12%
Queenstown-Lakes District 94% 6%
Christchurch City 48% 52%
Hamilton City 84% 16%
Kapiti Coast District 87% 13%
Lower Hutt City 86% 14%
Nelson City 76% 24%
Porirua City 93% 7%
Selwyn District 72% 28%
Tasman District 85% 15%
Tauranga City 92% 8%
Upper Hutt City 81% 19%
Waimakariri District 43% 57%
Wellington City 92% 8%
Western Bay of Plenty District 87% 13%
*Rest of NZ 67% 33%



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Table 2: showing what percentage of houses in an area are eligible for the Home Start Grant (including existing properties and new builds – for the 12 months ending June 2020)

Area No Yes
Auckland 86% 14%
Queenstown-Lakes District 91% 9%
Christchurch City 43% 57%
Hamilton City 76% 24%
Kapiti Coast District 82% 18%
Lower Hutt City 77% 23%
Nelson City 72% 28%
Porirua City 89% 11%
Selwyn District 70% 30%
Tasman District 83% 17%
Tauranga City 88% 12%
Upper Hutt City 77% 23%
Waimakariri District 38% 62%
Wellington City 90% 10%
Western Bay of Plenty District 80% 20%
Rest of NZ 60% 40%

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