New Zealand Housing Market Most at Risk of Bust, Goldman Says

Bill English said the announcement will essentially outline the next stage of the Government's plans for the government-owned housing estate.

The programme represents a direct political as well as policy response both to the government's growing vulnerability to a backlash over Auckland house price inflation and shortages in the booming city, and the Labour Party's promise to build 100,000 new affordable homes over 10 years.

The Government is set to announce plans to build more housing on existing state housing sites.

The Government today has announced a Crown land and building programme that will see tens of thousands of new houses built in Auckland over the next decade.

Phase one will be built over four years and will include 4700 social houses and 2300 affordable homes, requiring the demolition of 3000 existing properties.

The report looks at housing markets in the G-10 countries - those with the 10 most-traded currencies in the world - and finds they are most elevated in small, open economies such as New Zealand, where house prices have rocketed in recent years.

The announcements coincide with a report from investment bank Goldman Sachs warning that Auckland's housing market has reached "bubble" status with properties over-valued by some 40 percent, and a risk of prices falling in the next two years.

But Mr Little has also defended his policy against the comparisons.

Part of the 10 km-long track was closed for some months after a major slip a year ago took out a bridge and caused substantial damage at the track's eastern end.

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Comey, for instance, was a former United States Attorney in Manhattan before being appointed deputy attorney general by George W. Trump confidants say Bannon has been marginalized on major decisions, including Comey's firing, after clashing with Kushner.

Numerous old houses were more than 40 years old or had too many bedrooms, Adams said.

Housing New Zealand would retain dividends and proceeds from state house transfers to help fund the programme.

"This programme will make a significant difference to the whole Auckland market", said Adams.

Labour leader Andrew Little said the National-led Government was finally admitting there was a housing crisis in New Zealand.

It'll mean 8300 run down houses will be replaced with 34,000 homes.

"National has missed an opportunity to really prioritise getting every Aucklander into a warm, dry home of their own", says Green Party Co-Leader James Shaw.

She said the houses would be for the most vulnerable families and for first-home buyers as well as the wider market. "It's time for Labour's plan", says Little.

The first phase of the building programme would cost $2.23 billion, of which $1.1 billion would come from borrowing and the rest from Housing NZ's balance sheet.

"This is an embarrassment actually".

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