New urban limits to influence housing affordability

A new discussion document from one of Auckland’s most influential economic groups wants a review of urban limits and a change from rates driven funding for infrastructure to help the region cope with the demands of its population growth.

Wednesday, September 26th 2007, 3:49PM

by The Landlord

These are two of the key recommendations in a discussion paper – Initiatives for Auckland – just released by the Property Council of New Zealand.

“Overseas results show that taking a flexible approach to city limits can have a major impact on affordability issues and this is something the Auckland region must look at,” says Connal Townsend, the Property Council’s chief executive.

The discussion document also highlights “unsustainable” use of property rates to fund major infrastructure projects, with the Property Council recommending debt-funded infrastructure projects to spread the costs over future generations that will also benefit from new infrastructure.

The Property Council, whose members own and manage $14 billion of assets in Auckland, is at the sharp end of business when it comes to dealing with the region’s numerous councils and their differing compliance regimes.

“We believe creating one council and a one stop regional shop for building and resource consents would save time delays and compliance costs – costs which frequently end up being passed on to the consumers,” says Townsend.

“One regional governance body and 20 community councils, with the existing city and district councils integrated into the new structure, would eliminate much of that cost.”

The Property Council also recommends a similar regional approach to standardising rates across the Auckland region.

A single, vertically integrated water service and integration of the plethora of transport agencies into one regional organisation are other key recommendations.

With Auckland’s population set to grow at double the national rate over the next 20 years, the Property Council says there needs to be a balance between growth in the suburbs, which may mean cheaper house prices, and the provision of costly new infrastructure and the related issue of increased traffic.

“Available research shows it makes commercial sense to invest in higher density developments and we should be making sure town centres are an attractive and exciting place where people want to live,” says Townsend.

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