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Insight, news and updates from Alliott NZ Chartered Accountants, Auckland New Zealand. The views expressed here are the views of the author and should be discussed in further detail should an article be relevant to your individual circumstances.

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Investing your money - Property & those Auckland house prices

Written by David Burt - Investment Specialist on March 20th, 2015.      0 comments

The facts are reasonably clear, but the causes behind the relentless rise of Auckland's house prices are less so.
 

Don't believe everything you read in the papers

If the media are to be believed, it is lack of supply that is driving prices up.  But this masks the real issue, and rather cleverly because there is some truth in the “we’re building too few houses” theory.
 
What drives up the price of anything in any market is: more money chasing each unit of the target (good, service, whatever).  Merely building fewer houses than an increasing population wants will not, in and of itself, drive up prices a single dollar.  It is the number of dollars chasing houses that is the key.