Developers oppose anti-greenfields Auckland housing plans, council defends

Fulton Hogan is concerned about its plans for Milldale, north of Auckland. Photo / Greg Bowker

Developers are complaining about a move to squeeze most new Auckland housing into existing suburbs in the next 27 years but Auckland Council says climate change, protecting the natural environment and a Government push are prompting it.

Graeme Causer, chief executive of land for Fulton Hogan, says multi-billion dollar residential plans could be jeopardised by a rule change to squeeze most new housing into existing suburbs instead of building on greenfield sites or those not previously developed.

He spoke for Future Auckland, which is a “concerned collective” of businesses and lobbyists: Stonewood Homes, Jennian Homes, Cabra Land & Property Development, Signature Homes, the NZ Initiative, Neil Group, Woods, Universal, Hunter, Generation Homes, JG Civil, Sensation Development, Highmark Homes, Hibiscus Contractors, Laura Homes, Renewal Construction, Jalcon Homes, Fowler Homes, JVJ homes, Kiwinest, Platinum Homes, Dines, WLY Homes, Modner Environments, North Bright Homes, Mr. Build Homes, Alba Homes, Millstone Residential, Brandmad, Malco, RAL Homes and HHC Homes.

But nothing is yet decided by the council which has invited submissions on the scheme, open till early next month.

Causer says the change could push up new house prices because developers would need to pay more for land if they could only build homes in brownfields areas of existing suburbs.

“This will change the face of existing Auckland suburbs because residential intensification will only be allowed to occur in areas with existing development. Yet most people don’t know what’s going on and we only have till July 4 to respond to this via submissions,” he complained.

The council says its future development strategy “sets out the big picture vision for how and where we should grow over the next 30 years to achieve the best outcomes for Tāmaki Makaurau”. It cited the Government’s new law to demand more housing intensification as well as climate change as drivers.

Graeme Causer of Fulton Hogan: raised concern about the planning change. Photo / Supplied

“There are many ways cities can grow. We propose that most new housing and business development be in the existing city near town centres, good public transport services and jobs, rather than spread out across the region. We also propose to have less growth at the edge of the city. Focusing growth in our existing urban areas, rather than more growth on the edges, results in improvements to the environment, the economy, and people’s wellbeing,” the council says.

Submission can be made from today to July 4.

But Causer of the Christchurch and Auckland developer says this timeframe doesn’t allow for a full formal submission process where parties can be heard.

He and the others in Future Auckland think such an important change should go to full hearings.

“The really concerning thing is the council is proposing not to have hearings on this intensification policy. There are only four weeks for submissions on the biggest alteration to housing policy in 30 years that I have seen. The policy will seriously affect all existing suburbs and prospective house buyers in Auckland.”

He is particularly worried about how the change could affect three areas of Auckland: Milldale, Silverdale and Drury where Fulton Hogan has big projects on.

“Plans for thousands of new homes at Milldale on the city’s northern outskirts will be scuppered. We won’t be able to build what we have planned there until after 2050 under the scheme as it is now. But we’ve already built the infrastructure there including sewers, bridges, bus lanes and roads as well as water and power supply,” Causer said.

Plans for Silverdale West were also now in doubt yet several billion dollars worth of work was planned there by Fulton Hogan, Fletcher Building and others.

“The idea about developing that area was to get employment into Silverdale to reduce traffic movements across Auckland. But now, that won’t occur if this plan goes ahead,” Causer said.

Fulton Hogan also has big plans for Drury but Causer said he didn’t know how those would be affected.

The Drury-Ōpaheke area is expected to see 22,000 new houses over the next 30 years, which Auckland Council said will require it to invest in everything from new roading and community facilities and parks.

“Council seems to be doing whatever they can - like they have the right to direct every development into existing suburbs and have no greenfields to supplement it. You won’t get the volume of houses built that Auckland requires if we’re restricted to building in brownfield areas alone.

“The prices will be higher because we’ll have to pay more for the land. Also, the infrastructure will need to be upgraded, like resizing sewer lines. That will ultimately cost the council more money.”

On May 5, the council’s Planning, Environment and Parks Committee approved the draft future development strategy document going out for consultation. Once feedback is received, the plan will go under consideration from July to August. Submissions from the public, business and local boards will influence whether there are any changes.

According to the project timeline, that same committee expects to adopt the final document later this year.

“We want your feedback on our approach to how and where Auckland should grow and change,” the strategy document says.

“The population is expected to continue to grow by around 520,800 people to a total of 2,230,800 and will require around 200,000 additional homes. However, this is a time of many uncertainties: climate change, weather events, environmental degradation, the impacts of the Covid–19 pandemic and future major infrastructure projects,” the consultation document says.

These uncertainties are challenging society to examine how we live and grow. Then there is the central Government driven legislative programme, particularly through the National Policy Statement on Urban Development 2020, Medium Density Residential Standards and environmental and climate legislation.

“To make sure that we build on its strengths and deal with this significant uncertainty, we need to plan for how and where Tāmaki Makaurau will grow. This is the role of the Future Development Strategy. It replaces the Development Strategy 2018 and the Future Urban Land Supply Strategy 2017,” the council said.

Historically, more than 80 per cent of growth has happened within existing urban areas, mostly through intensification. Looking ahead, most growth will be accommodated within existing urban areas, the council said.