why is auckland residential property so expensive ?

 Auckland is the largest and most populous city in New Zealand, and like many other metropolitan areas around the world, it is facing a housing affordability crisis. The price of residential property in Auckland has skyrocketed in recent years, making it one of the most expensive cities in the world to live in. In this blog post, we will explore some of the reasons why Auckland residential property is so expensive.

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Supply and demand

One of the primary reasons why Auckland residential property is so expensive is due to the laws of supply and demand. Auckland is a rapidly growing city with a limited supply of land available for development, which means that demand for housing far outweighs supply. According to recent reports, the city is short of approximately 45,000 homes to meet current demand, and this shortage is only projected to grow over the next decade. This high demand coupled with a limited supply of homes has led to an increase in property prices.

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Urban planning

Another factor contributing to the high cost of Auckland residential property is urban planning. Over the years, Auckland has been plagued by poor urban planning, which has led to inefficient use of land and a lack of affordable housing options. The city has a large urban sprawl, with much of its development taking place on the outskirts of the city, far away from employment and transportation hubs. This has resulted in a heavy reliance on cars and increased traffic congestion, which further exacerbates the problem of affordability.

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Foreign investment

Foreign investment is another factor that has contributed to the high cost of Auckland residential property. New Zealand is a desirable destination for foreign investors due to its political stability, low corruption levels, and high standard of living. This has led to a large influx of foreign investment into the country, which has driven up property prices. In particular, Chinese investors have been a major force in the Auckland property market in recent years, with many purchasing properties as investments or as second homes.

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Low-interest rates

Low-interest rates have also contributed to the high cost of Auckland residential property. With interest rates at record lows, borrowing money to buy property has become more affordable, which has driven up demand for housing. This increased demand has put upward pressure on property prices, making it harder for first-time buyers to enter the market.


Government policies

Government policies have also played a role in the high cost of Auckland residential property. For example, the government has implemented policies that make it easier for foreign investors to purchase property in New Zealand, which has driven up demand and prices. Additionally, the government has been slow to address the housing affordability crisis, which has allowed the problem to escalate.


In conclusion, there are a number of factors that have contributed to the high cost of Auckland residential property, including supply and demand, urban planning, foreign investment, low-interest rates, and government policies. To address the housing affordability crisis in Auckland, there needs to be a concerted effort to increase the supply of affordable housing, improve urban planning, and address the issue of foreign investment in the property market. Only then will Auckland residents be able to find homes that are both affordable and sustainable in the long term.

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