Housing and the Auckland Unitary Plan

This Issue This is a part of the Tale of two cities feature

By - , Build 139

BRANZ research shows that demand for new homes in Auckland is about to double, which will stretch the industry’s capacity to cope. Builders should start preparing now for the opportunities ahead.

Figure 2: Breakdown of expected 85,000 new Auckland houses 2013–2021.
Figure 1: Total Auckland new dwelling consents for the next 8 years.
Figure 3: Building activity in Auckland.

THE REVISED VERSION OF THE UNITARY PLAN for Auckland was released on 30 September. It was substantially amended following public feedback on the March 2013 draft version. The main changes were a reduction in intensive house zoning in the established suburbs, particularly a reduction in densities and the number of storeys in the mixed housing zone.

Zoom in to spot opportunities

The plan is available on the Auckland Council website. Users can zoom in to quite fine detail encompassing just a few sections and overlay with aerial photos. This shows buildings already there and their location on the site. Section sizes and dimensions can be measured on the website and the capital value obtained.

This information, together with the zone allowed in the plan, provides a very useful tool for identifying development opportunities.

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Over 10,000 new houses a year

Currently, Auckland is building about 5,000 houses per year, but BRANZ forecasts average about 10,500 per year over the next 8 years to 2021 (see Figure 1). This will be a challenge for the industry, but numbers were above this level during the mid 2000s.

Figure 1: Total Auckland new dwelling consents for the next 8 years.
Figure 2: Breakdown of expected 85,000 new Auckland houses 2013–2021.

The Auckland Housing Accord forecasts a total of 39,000 houses in the next 3 years (see bars in Figure 1), but BRANZ believes it will be difficult for the industry to gear up quickly enough to produce this number. Instead, BRANZ forecasts a total of about 32,000 units in the next 3 years.

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What housing is in demand?

There is a rising trend in multi-units, and BRANZ projects these will make up 44% of all new dwelling units over the 8-year period (see Figures 1 and the detailed breakdown in Figure 2).

However, the largest demand is for detached houses on vacant sites and readyto- go greenfield – land with bulk services and some reticulation.

The next largest segment is terraced housing and apartments. This is up to 4-storey construction. These units are likely to appeal to two main groups:

  • Empty nesters who are looking to sell the family home and downscale but still remain in the same suburb if possible – their requirements are for quality finishes, garaging, 2 bedrooms and a study, low maintenance and to be near local services.
  • Singles and young couples looking for an entry purchase at the cheaper end of the market – terraced housing or larger-scale in town and metro centres.
Figure 3: Building activity in Auckland.

Mixed housing is in two parts – suburban and urban with 2-storey and 3-storey limits respectively.

The redeveloped metro, town and local centres are for intensified housing and various levels, 4 to 8 storeys or more, depending on location.

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Builders should be prepared

Many builders undertake alteration and addition work. At present in Auckland, there is slightly more of this work than new housing work (see Figure 3), but the growth opportunities over the next few years are in new housing, in particular, in multi-unit construction.

Builders may wish to consider scaling up to undertake this work because it does involve some capital outlay and appropriate arrangements with your bank manager.

Further details of these opportunities are in the BRANZ Study Report 295.

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For more

Download BRANZ Study Report 295 Auckland housing forecasts and the Unitary Plan for free at www.branz.co.nz, then Publications, Study Reports.

Download the PDF

More articles about these topics

Articles are correct at the time of publication but may have since become outdated.

Figure 2: Breakdown of expected 85,000 new Auckland houses 2013–2021.
Figure 1: Total Auckland new dwelling consents for the next 8 years.
Figure 3: Building activity in Auckland.

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