Prime Minister John Key has rejected suggestions that a delay in approving Auckland’s unitary plan is driving up house prices.
He told a post-cabinet press conference today that house prices had only recently become a concern to central Government.
The Reserve Bank warned last week it would move to raise the official cash rate if momentum continued in Auckland’s house prices.
Key said it was not up to Government to intervene in monetary policy but Government was focused on the issue of rising house prices and was looking for solutions.
Key said even if the draft Auckland plan was approved immediately, there would still be a delay before new housing supply became available.
The plan allows for much more intensification in Auckland but is not set to be ratified for another three years, to allow for more consultation.
By comparison, a plan to overhaul Sydney's Darling Harbour, with 1400 new apartments, was lodged with the Government this month. All of the building is expected to be complete by 2016.