Fewer than half of Kiwibuild houses have sold

It takes special ability to stuff up both the supply and demand side of something, but Labour have managed it with Kiwibuild.

Not only are they 80% short of their election promise target, but the few houses they have funded are not selling.

Kirsty Johnston reports:

Out of the 271 homes offered for sale since the scheme made its first offer to market in September last year, 158 are currently up for grabs.
Of those unsold, 55 are in Christchurch – where just two homes have sold so far, and four have had to be bought back from developers because of the lack of sales.

So only 42% of Kiwibuild houses have even sold. Remember the Government telling us tens of thousands of people were queued up to buy them.

Economist Cameron Bagrie said the data illustrated the fundamental problem with the policy’s execution – that it was done poorly.
“There’s product on the market that there’s not demand for. If the product is on the market at the right price, it will move. If it was quality product at the right price, then it would shift. And what you’re seeing is the reserve,” he said.
“If you look at what the Government was trying to achieve in response to affordable housing, this isn’t the response. It’s a poor policy and it’s been poorly executed. KiwiBuild is a dog with fleas. 

A dog with fleas – great analogy.