Infometrics expects big jump in high density housing once Auckland's Unitary Plan is finalised, which could push prices down by 11%
Economic consultancy Infometrics is predicting that the number of new homes being built will increase by 39% over the next two years and and house prices could fall by 11% once the new supply kicks in.
Infometrics chief forecaster Gareth Kiernan is predicting new dwelling consents to hit 40,044 a year in the two years to June 2018, up from 28,387 in the 12 months to May this year.
Much of the increase is expected to occur in Auckland, where Kiernan is predicting consents to increase to about 14,000 new homes a year, compared to 9434 in the 12 months to May this year.
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Infometrics is predicting house prices to drop 11% over the two years to September 2019 as the extra supply starts to kick in.
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