As New Zealand grapples with its most significant housing challenges in decades, the Government’s Going for Housing Growth (GfHG) strategy has the potential to deliver transformative changes to land availability, infrastructure development, and affordable housing supply, Bayleys executives say.
Where reforms aim to quickly and efficiently boost New Zealand’s capacity for sustainable growth, Housing and Infrastructure Minister Chris Bishop says the GfHG strategy is pivotal in tackling New Zealand’s urgent housing supply and affordability challenges.
He says that a focus on land supply is at the heart of the GfHG programme. The country’s housing and affordability issues are tied closely to the high cost of land, driven by restrictive zoning and planning regulations that have throttled urban growth. By removing barriers to land development and introducing higher growth targets for key regions, GfHG is poised to unlock new opportunities for developers.
Bishop notes that removing unnecessary barriers, such as minimum apartment sizes, will significantly reduce housing costs. “Our cities should reflect how people want to live,” he states, advocating for creative, mixed-use urban projects.
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Intensification along strategic public transport corridors is another critical aspect of the GfHG strategy. By enabling housing development around transit routes, the Government seeks to enhance accessibility and convenience for residents, aligning infrastructure investments with housing growth targets.
However, land availability alone is insufficient. Infrastructure must keep pace with new developments to ensure sustainable growth. Bishop says GfHG addresses this by aligning infrastructure investments with national housing goals, facilitating faster rollout of essential services such as roads, water and utilities.
“We can’t let infrastructure funding hold back growth,” he asserts, highlighting the necessity of collaboration between developers and local authorities to streamline processes.
Bayleys corporate projects and development land sales director Gerald Rundle underscores the potential impact of these reforms. He believes that easing restrictions on greenfield development will re-engage residential developers to unlock affordable housing opportunities, particularly in high-demand regions like Auckland and Hamilton.
“This is key to meeting the increasing demand for housing,” Rundle explains, pointing to the untapped potential of outer urban suburbs.
“However, the ability to unlock greenfield development hinges on infrastructure. Without it, even the most promising land can’t fulfil its potential.
“Historically, the limited availability of appropriately zoned land, combined with restrictive council policies, creates significant barriers. On top of that, uncertainty surrounding urban zoning and infrastructure provision adds layers of complexities, delays and costs to development projects – costs that are inevitably reflected in the final price of new homes.
“Infrastructure funding mechanisms under GfHG are a hopeful step in the right direction. The Government aims to work more closely with councils to ensure the infrastructure for new homes is in place before development begins, which could be a turning point for greenfield development,” he says.
Bayleys projects national director Suzie Wigglesworth agrees, highlighting the GfHG’s focus on reducing red tape and streamlining the development process. “By simplifying the planning framework, GfHG is making it easier for developers to launch projects, which is critical for addressing the supply gap,” she explains.
“With construction costs stabilising and financing becoming more accessible, the environment for residential development is poised for significant improvement.”
Looking ahead, Wigglesworth envisions a dynamic housing market driven by these reforms. “If implemented effectively, we’ll see a new era of growth for the residential development sector,” she says, emphasising the importance of infill housing in urban areas.
“As New Zealand strives to meet the housing needs of its growing population, Bayleys stands ready to support developers and stakeholders in navigating this evolving landscape, ensuring a brighter future for homeowners nationwide.”
- Supplied by Bayleys
