The Labour curse strikes again

June 5th, 2014 at 12:27 pm by David Farrar

We’ve seen with manufacturing and immigration the curse in action. After a few months of them declaring something is a crisis, it improves massively. In fact immigration has improved so much they’re now claiming it is a reverse crisis with not enough people leaving which has turned Auckland into a crisis.

Well the curse has struck again. The Herald reports:

Auckland house sales, prices fall in May

I’m going to write to Labour and ask them to declare my love life a national crisis. That should result in a hugely improved winter for me :-)

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23 Responses to “The Labour curse strikes again”

  1. Yogibear (366 comments) says:

    @DPF – crisis or disaster?

    If the latter, natural or man-made?

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  2. toad (3,674 comments) says:

    I don’t think the headline accurately reflects the statistics. The average price dropped slightly in May from April, but the median price increased by 4% between April and May. Also, the average price has increased by 9% from that in May 2013.

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  3. ciaron (1,434 comments) says:

    I’m going to write to Labour and ask them to declare my love life a national crisis. That should result in a hugely improved winter for me

    I dunno, but I’m sure I heard Wendy Petrie say something along the lines of “I’d like to keep him in a box at the end of my bed” after interviewing you on something or other… :)

    [DPF: Almost right. She was one of the hosts, but the other was Paul Henry and it was Paul that made the comment!]

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  4. lastmanstanding (1,297 comments) says:

    Labour leader says Government to blame for wiping out billions of dollars of hardworking Aucklanders savings. Call son all Auckland home owners to vote for Labour at next election. Mr Cunliffe said only Labour lead Greens New Zealand First Internet Mana Government can restore the lost billions of dollars to hardworking Auckland votes.

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  5. Harriet (4,970 comments) says:

    “….After a few months of them declaring something is a crisis, it improves massively….”

    Unlike their polls…… they haven’t improved at all after the leadership crisis!

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  6. Yogibear (366 comments) says:

    Given that Labour-declared crises tend to result in unintended and sometimes comically perverse outcomes, you’d probably end up with Mona Dotcom’s number

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  7. Auberon (873 comments) says:

    Dear Labour, my family’s personal finances are in an absolute CRISIS. This is serious. An all of government response is urgently required…

    That should do the trick. In a week’s time I’ll be a multi-millionaire.

    In fact, with Labour’s track record I’ll probably make the Forbes list!

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  8. Sir Cullen's Sidekick (890 comments) says:

    Uncle DPF, I don’t think you have any crisis!!! Your stocks are flying high. As the Greens’ new poster boy and the imminent appointment as their Carbon Commissioner with a $2M budget to blow, what crisis?

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  9. thedavincimode (6,759 comments) says:

    The Labour curse strikes again

    Oops, sorry – my mistake. I thought this thread was going to be about Lord Cunliffe, home renovator of ‘The Leaves’, Marine Parade, Herne Bay.

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  10. mjw (396 comments) says:

    Congratulations to National for reducing the average Auckland house price to an affordable $702,966.

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  11. unaha-closp (1,165 comments) says:

    Len Brown succeeds again.

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  12. lastmanstanding (1,297 comments) says:

    mjw its called supply and demand. Get over its. Oh I forgot. You would rather live in a Labour/Greens command controlled economy where you would inhabit Apartment 1103 in Apartment Block 154 in the State price controlled housing development.

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  13. RRM (9,919 comments) says:

    I’m sure I heard Wendy Petrie say something along the lines of “I’d like to keep him in a box at the end of my bed”

    Euw. I hope she cleans it between uses… :eek:

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  14. alwyn (424 comments) says:

    “I’m going to write to Labour and ask them to declare my love life a national crisis.”

    I would be careful if I were you Mr Farrar. Your local MP might take this seriously and attempt to help you out.
    You do live in the Wellington Central electorate don’t you?
    Grant will be around imminently.

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  15. JamesBlake (62 comments) says:

    I’m not sure where this article proves there is no crisis. Less houses on the market and they are still far out of the reach of most Kiwi’s.
    Supply and demand is the basic controller of the market however there are many other factors involved and to think that those two simple ingredients are all that need to be accounted for is rediculous. After all governments are more than happy to let the reserve bank increase the cash rate and introduce lending restrictions to try and influence the market.

    As said when the average house price in Auckland is over $700K at the moment and you would need a $140K deposit to buy that house I would consider that a crisis.

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  16. ciaron (1,434 comments) says:

    DPF says [DPF: Almost right. She was one of the hosts, but the other was Paul Henry and it was Paul that made the comment!]

    I think I’d remember that, video please!

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  17. lastmanstanding (1,297 comments) says:

    See article in todays Daily Mail. Have a look at Sydney house prices. Auckland is just one of many large cities with rising house prices well ahead of the rest of the country. Supply and demand and people wanting to move to the Big Smoke. Nothing that Gumints can stop unless they build a wall around the City and shoot new comers on sight.

    http://www.dailymail.co.uk/news/article-2648961/Britains-two-tier-property-market-London-prices-pre-slump-peak-double-rest-country.html

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  18. JamesBlake (62 comments) says:

    Of course when it is calculated against the average wage NZ and in particular Auckland has one of the higest costs for housing. I would also argue that just because the issue exists else where doesn’t mean we can say it doesn’t exist here.

    Government can do plenty. They can introduce disinsentives to invest in property. Be this via a capital gains tax or rent controls. It can also remove rent subsidies which allow for higher rents to be charged which in turn increase rates of return and therefore property values.

    Auckland compared to London and Sydeny had a low density and high sprawl. It could also reduce prices by increasing density which this government is currently doing to some degree.

    Very high house prices are bad for two reasons. Firstly it means people are virtually excluded from entering the market unless on a high wage setting up a road block. Also the increased prices result in increased rents as landlords have to try and make some form of profit (Auckland being one of the lowest return area’s of the contry).

    When this is in the city that is home to a large proportion of the countries population it is right to call it a crisis. To throw your hands up and say Gumints can’t do nofing hardley changes that fact. Other wise you would be calling for legalising all forms of illicit drugs and removing the speed limit cause in the end no mater what Gumit does losers will still smoke P and idiots will still kill each other at high speed on our roads.

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  19. Sarkozygroupie (207 comments) says:

    DPF,

    Surely there must have been some nice warm furry girl yaks to cuddle up to on that mountain you climbed recently?

    [DPF: They're called naks and it was far too cold for that!]

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  20. goldnkiwi (1,304 comments) says:

    lastmanstanding (1,175 comments) says:

    June 5th, 2014 at 2:44 pm

    Agreed but you would have to define ‘newcomer’ my mother was Auckland born and as such if I wanted to live there I would claim citizenship on that basis.:) It is an independent country with its own laws isn’t it?

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  21. tom hunter (4,838 comments) says:

    Auckland compared to London and Sydeny had a low density and high sprawl.

    Not quite. Certainly London has a higher density but when it comes to comparing Auckland to our neighbours in Australia, or to North American cities, places that have been built up over the same time periods it’s just not true that Auckland’s sprawl/density is greater. In fact if you look at the following graph from Demographia, you’ll see that Auckland’s density among North American and Australian cities is exceeded only by Toronto. It may seem surprising that “classic” big cities like New York and my old hometown of Chicago have a lower density than Auckland, but that’s a matter of thinking that things like an urban boundary are meaningful anymore. They’re not, as you can tell by walking from one side of North Austin Boulevard (Oak Park) to the other side (Chicago), it’s the physical sprawl that counts.

    It could also reduce prices by increasing density which this government is currently doing to some degree.

    The next logical leap, and again the truth is the exact opposite. You want to see cheap housing, go to Houston. You want to see expensive, gentrified Bantustans, go to the Uptown, Oakdale and Andersonville districts in Chicago. The latter are denser – and super expensive.

    They can introduce disinsentives to invest in property. Be this via a capital gains tax or rent controls.

    Can you not see that introducing a disincentive to invest in property will actually reduce the amount of house building, making the problem worse? The demand won’t change but the supply can’t meet it any longer. In fact that’s part of the reason Auckland prices are so bad, the supply has been artificially constrained by planners and regulators whose collective actions greatly increase the cost of building new houses, especially in the areas where people want to live.

    As far as Capital Gains Taxes are concerned they did not stop, or even slow, the housing price bubbles in Europe and the US where they exist. As for rent controls, see any comedy set in New York for the stupid consequences that flow from such an idea. There’s good reasons why other major cities have not followed New York’s example – in fact large parts of New York don’t.

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  22. hj (7,011 comments) says:

    But Glaeser notes that there are problems with Houston’s sprawl: It takes a large amount of energy to make the area’s humid, hot climate comfortable, and the city is built around the use of cars.
    “Houston is among the five worst American metropolitan areas, in terms of its carbon emissions,” he says.
    And he acknowledges that for people who are concerned with environmental issues, Houston presents a picture that is beyond dismaying.
    “I think horrendous wouldn’t be too strong a word,” Glaeser says.

    http://www.npr.org/templates/story/story.php?storyId=112896915

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  23. hj (7,011 comments) says:

    On balance, the available evidence suggests that migration, in conjunction with sluggish supply of new housing and associated land use restrictions, may
    139
    have had a significant effect on house prices in New Zealand.
    ……
    http://www.treasury.govt.nz/publications/research-policy/wp/2014/14-10
    Migration and Macroeconomic
    Performance in New Zealand:
    Theory and Evidence
    Julie Fry
    New Zealand Treasury Working Paper 14/10
    [or you can believe :roll: our PM]

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