Property prices a hot-button issue in NZ election

Wellington

WHEN Olivia Hollywood began hunting for her first house in Wellington early last year, she was optimistic that NZ$500,000 (S$491,000) would get her on the property ladder.

After eight months attending packed viewings and watching homes auctioned at vastly inflated prices, Ms Hollywood and her partner abandoned their search. Since then, average prices in the Wellington area have gained another 13 per cent to exceed NZ$607,000. The couple is among thousands of Kiwis for whom home ownership is looking increasingly distant.

"It was frustrating for us because we did expect it was going to be quite easy," said Ms Hollywood, 24. "We decided it was just too crazy for us and we'd rather sit tight for a couple of years and save up a bit more." As ownership falls to the lowest since 1951, housing affordability is firing up voters ahead of New Zealand's general election on September 23. The government is under attack for failing to respond to price surges that have forced many to ditch their property dreams.…