'Get bargains near special housing areas'

Investors should snap up properties around the newly-announced special housing areas, one property commentator says.

Monday, September 15th 2014, 12:00AM

by The Landlord

A fourth tranche of 17 Special Housing Areas (SHAs) that would yield more than 8000 additional new homes across Auckland was announced on Friday by Housing Minister Nick Smith and Auckland Mayor Len Brown.

Smith said that brought the total number of SHAs in Auckland to 80, with the potential for up to 41,500 homes.

Qualifying developments in these areas can be streamlined and fast-tracked.

A big site at Papakura is among the latest SHAs.

About 350 homes could be built on the 100ha of land, including the former Papakura Golf Course.

Property commentator Olly Newland said if brand-new properties were going to be built, they would sell for a top price. “Anything next door is going to go for a similar price. Investors should use their long-term thinking and buy near these new high-density areas. Maybe the council should have kept quieter.”

He said brand-new homes were always more expensive than second-hand ones next door, because of the 15% GST added.

"The Special Housing Areas are making a real difference to the number of homes developers are building and planning to build at a range of different price points," Brown said.

"The council is seeing an exciting pipeline of construction activity which will result in quality residential neighbourhoods in 2015 and beyond. The Auckland Housing Accord is really starting to have a positive effect on the provision of new homes in Auckland, with almost 81,000 new dwellings and sections in the pipeline throughout Auckland over the next 12 years."

He said the success of the SHAs was obvious in the building consent figures - 7119 consents were issued in Auckland in the year to July, a growth rate of 30%.

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