The man at the helm of the Bank of New Zealand (BNZ), has said that he doesn’t believe the Auckland property market is entering a bubble, but has conceded that the country is facing a “real issue” around housing affordability

Speaking after the bank reported half-year profits of NZ$502million, Anthony Healy said an ongoing shortfall in housing supply combined with strong migration were the factors driving ever-increasing property prices.

“It’s hard to see a shock [price correction] when you’ve got probably ten, if not more years of additional construction that’s going to have to go on to try and get supply to catch up with demand,” he said.

Figures from real estate company Barfoot & Thompson show residential properties in Auckland sold at an average price of NZ$804,282 last month, up from NZ$776,729 in March.