Aucklanders are opting for 80 per cent-plus mortgages, and build homes on the city fringe in the south and west.

Industry officials cite a Reserve Bank relaxation on mortgage lending as a reason for a big pickup, and particularly last years removal of loan-to-value restrictions on new house construction.

QV valuer Bruce Wiggins said people with less than 20 per cent deposits were looking at new subdivisions south or west around Weymouth, Hobsonville, Takanini and Papakura. Although borrowing so much and building could be risky, buyers were forced into it.

Certified Builders chief executive Grant Florence said the price gap between existing and newly built homes was narrowing, so more young people saw construction as an option. More were moving towards Auckland's outskirts where land was cheaper.

Full story and source: NZ Herald