Very few but the most property-savvy appreciate to what extent the upcoming wave of newly built residential properties is soon going to transform Auckland and New Zealand’s housing market.
That’s the opinion of Bayleys national director of residential projects, Suzie Wigglesworth. She is explaining why Bayleys has recently launched a dedicated New Build Team to support its existing Projects team (which caters for large-scale residential developments.)
“It’s become quite complex for the average person to keep abreast of all the changes happening in the market which are creating new opportunities,” Wigglesworth says.
“And going forward there is going to be whole raft of different people who are going to benefit from some specialist advice, not just the traditional developers. Owners considering selling their properties, less experienced Mum and Dad-type developers, traditional developers and builders and buyers considering buying off-the-plans need to understand the changing new build landscape.
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“There’s already been change in the new build residential property sector brought about by changing legislative and financial conditions, but massive future changes are on the horizon.
“Bayleys expanding its development arm with a dedicated New Build Team offering specific expertise in the small-to-medium residential development sector positions us to become the number one go-to for New Zealand’s new build residential property developments of any size. This includes us being able to advise people considering selling homes on good-sized sections in areas ripe for development, wanting to understand the true value of their land to a developer.”
A key driver of upcoming extensive new build changes to intensify housing and increase supply is the Resource Management Amendment Act 2021 which became law in December 2021. This requires the councils of rapidly growing cities – Auckland, Hamilton, Tauranga, Wellington and Christchurch – to apply new standards to enable more types of medium density residential housing.
“The new rules which are coming in will allow you, without any resource consent, to develop many sites by building up to three dwellings with a height level up to 11 metres as opposed to the standard 8 metres. This will see a lot of three-level townhouse-type product being built in many areas where this hasn’t previously been permitted.”
An artist's impression of Launch Bay Oval Houses, in Hobsonville Point, Auckland. The houses are being developed by Winton. Photo / Supplied
Also driving change is the National Policy Statement on Urban Development 2020, requiring larger councils to enable denser housing in the walkable distances in areas such as around city centres and rapid transit stops. For example, Auckland Council is required to enable buildings of six storeys or more within walkable catchments in and around the city centre and 10 large metropolitan centres and around rail network train stations and rapid busways stops.
Deadlines to implement changes vary by local authority. Auckland Council has already sought public feedback on its preliminary response to the NPS UD and RMA Amendment Act and will publicly notify resulting proposed Auckland Unitary Plan changes by this August. Then it’ll take more public submissions, which an independent hearing panel will consider before making recommendations to council on the necessary changes to the Auckland Unitary Plan by early 2024.
“We expect up to 100,000 new homes including apartments and townhouses to be built around New Zealand in the next five years,” Wigglesworth says.
She says investors are increasingly interested in new builds. This follows recent announcements exempting these from the removal of interest deductibility against rental income and from the 10-year bright-line test taxing profits when investors buy and sell a residence for income.
Bayleys New Build Team will leverage the company’s existing expertise in selling off-the-plans, creating feasibility studies, market analysis, pricing, design and trend forecasts and in creating ground-breaking marketing and advertise campaigns. To contact Bayleys’ New Build Team, email Suzie Wigglesworth at [email protected]
- Sponsored by Bayleys
