Twyford Phil: Oral Questions — Questions to MinistersText is incorporated into the Bound VolumeTwyford Phil: Oral Questions — Questions to Ministers[Sitting date: 20 October 2015. Volume:709;Page:7340. Text is incorporated into the Bound Volume.]6.PHIL TWYFORD (Labour—Te Atatū) to the Minister for Building and Housing: Is the reason he does not support banning non-resident foreign buyers from purchasing existing homes that he agrees with the Prime Minister that the Australian Government’s housing policy has been “spectacularly unsuccessful”?Hon Dr NICK SMITH (Minister for Building and Housing): The reason the Government does not support bans on foreign buyers is that they are shown not to work. As the Prime Minister said the policy has been spectacularly unsuccessful in Australia. House prices in Australia’s major cities are even higher than in Auckland and have been rising rapidly. The average price of a house in Sydney is currently $930000 as compared with Auckland’s $741000 prices in Sydney have gone up by 9 percent in the last quarter and homeownership rates in every state and city of Australia have declined over the last census. I also note that those who are advocating banning non-resident foreign buyers propose exempting Australians and instead focusing on those with Chinese-sounding names. This sort of inconsistent policy is more about racial politics than helping homeowners.Phil Twyford: Does he stand by his own statement in the House last week that “The Australian policy has not worked because the prices of homes in Australia have gone up by more and are less affordable than what they are in New Zealand.”; if so how much faster have Australian prices increased in the last year than New Zealand prices?Hon Dr NICK SMITH: The specific information I do have is that house prices in Sydney over the last quarter have gone up by 9 percent. The current price of an average home in Sydney is $930000. That is about 20 percent higher than the price in Auckland. I also note that in every city in Australia and in every state homeownership rates have declined over the last census and so I would not suggest that Australia has the answer to New Zealand’s housing challenges.Phil Twyford: Can he confirm that CoreLogic Australia’s data shows that Sydney was the Australian city with the fastest house price growth in the last year at 16.7 percent yet Auckland house prices in the same period went up 22.6 percent meaning that Auckland house prices were going up 35 percent faster than Sydney’s?Hon Dr NICK SMITH: No I cannot confirm that because I regularly find that that member’s numbers are as dodgy as his Chinese-sounding names surveys—Mr SPEAKER: Order! That answer will not help the order of this House.David Seymour: Does the Minister think it is sensible to expect that bringing the same inflow of capital to the same supply-constrained market through a narrower channel being only new builds would have any effect on the price in the long term?Hon Dr NICK SMITH: No I do not think it would and I would draw the member’s attention to the experience in Christchurch. Christchurch had very high house price inflation; it went over 15 percent. We have been able to treble the rate of new house builds in Christchurch. Over the last year house prices in Christchurch have risen by only 2 percent and rents have actually dropped by 8 percent in Christchurch. What that shows is that supply is the most important focus and that is why this Government in Auckland is putting the emphasis on growing supply as quickly as possible.Phil Twyford: Can he confirm that house prices in New Zealand’s main urban centres went up 40 percent faster than in Australia’s main urban centres in the last year and that the median price in Auckland is now only $68000 less than Sydney’s median even though New Zealand incomes are much lower?Hon Dr NICK SMITH: No I cannot confirm those numbers. As I said earlier I find that member’s numbers as dodgy as his Chinese-sounding names surveys which are not particularly reliable. I would also note that since we have been in Government an increasing number of New Zealanders are choosing to move from Australia to New Zealand because our incomes are doing better and New Zealanders see a better prospect for their future in New Zealand under a John Key Government than they ever did when the previous Government ran the place.Rt Hon Winston Peters: I raise a point of order Mr Speaker. The Minister in answer said he could not confirm the figures. All the rest was a political tirade and he should have been stopped.Mr SPEAKER: I did consider indeed intervening but the level of interjection that was coming from my immediate left was I thought enough for the Minister to have the opportunity to respond to that.Joanne Hayes: In what ways are New Zealand first-home buyers at an advantage over those in Australia and what steps has the Government taken to further help this group?Hon Dr NICK SMITH: New Zealand first-home buyers are able to access their KiwiSaver funds for putting a deposit on a house. Our HomeStart package which took effect on 1 April expands the funds that can be withdrawn and increases those grants and subsequently there has been a record uptake of those schemes. I note that Australia does not allow access to superannuation funds for first-home buyers and I think that puts young New Zealand families at a significant advantage in meeting their aspirations of owning their own home.Phil Twyford: Did he deliberately mislead the House by claiming that Auckland house prices have not gone up as fast as those in Sydney or that New Zealand house prices have not gone up as fast as those in Australia or did he simply not check his facts?Hon Dr NICK SMITH: Let me give the member the exact figures. The average price of a home in Sydney—the latest data—is $930000. The average price of a house in Auckland is $741000—i.e. houses in Sydney are more expensive than in Auckland. If we look at the latest data on increases the latest quarterly data shows that—[Interruption]Mr SPEAKER: Order! There is little point in answering the member’s question when the member is not prepared to listen to the answer. Question No. 7 Alfred Ngaro. [Interruption] Order! The member Phil Twyford will stand and withdraw and apologise for that interjection.Phil Twyford: I withdraw and apologise.