The Government is rejecting claims Auckland's housing market is so out of control that it's now more expensive than one of Australia's most expensive cities.
Financial services company UBS has provided figures to Labour showing an average Auckland house sold for $A13,000 more than an average house in Melbourne in the December quarter.
Labour's housing spokesperson Phil Twyford says it proves Auckland's house prices are getting out of control and that the Government needs to take some action.
"Tinkering with the RMA and planning rules is not going to cut the mustard, and Labour believes that the housing crisis, particularly in Auckland, requires the kind of bold action that we are proposing by building ten thousand affordable starter homes every year and taxing speculators through a capital gains tax that would exclude the family home."
However Housing Minister Nick Smith says overall, houses cost more in Australia than they do in New Zealand.
D Smith said it was arbitrary to single out Melbourne for comparison, because prices in Sydney are substantially higher.
"I think you also need to weigh into the broader picture of what's going on, and that is the New Zealand economy is doing very well, the Australia economy is having its challenges - that's changing the exchange rate."
