Property bosses draw up wishlist

Industry wants RMA reform, extension of Special Housing Areas, affordable homes and perhaps capital gains tax.

Property and construction bosses want the Government to reform the Resource Management Act, an extension of Special Housing Areas, the creation of more affordable housing in Auckland and Christchurch and perhaps the introduction of some form of capital gains tax.

Philip King, Fletcher Building's group general manager of investor relations and capital markets, said business had renewed confidence.

"We are pleased that the election has produced a clear cut result which will provide the business community with the certainty it needs around economic policy and direction for the next three years," King said.

Peter Thompson, Barfoot & Thompson managing director, said he was not overly concerned about overseas buyers but if there was to be any policy put in place from the new Government to discourage them, a capital gains tax (CGT) might work.

"We do need to protect our land and we do that already via the Overseas Investment Office and that's working and maybe that needs to be looked at a bit more and tightened up a fraction," he said.

"Do we need a CGT on overseas buyers if they're not living in New Zealand? I don't want to see any taxes go on but if there's one, maybe that's one way of starting."

National rejected a capital gains tax, which Labour campaigned hard on, although the topic was centre stage at the Herald's Mood of the Boardroom breakfast in Auckland this month when nearly 54 per cent of respondents saw merit in the tax.

Campbell Barbour, NZ Retail Property Group general manager, wants to begin building apartment towers up to eight levels around the Milford Mall, after the Environment Court heard the matter, and said resource consents were now being sought.

He also wants RMA reform.

"We would like to start in 2015," he said of Milford.

Reform could help such big projects. But Barbour is also concerned about lack of cohesion between Auckland Council-controlled organisations and the split between water, planning and transport chiefs.

"They all look at projects differently," he said, saying how that added to delays and costs.

Property Council chief executive Connal Townsend said National's strong mandate gave the multi-billion dollar industry grounds for more hope, confidence, investment and momentum.

RMA reform, the extension of Special Housing Areas and development contributions were top of his mind.

"We know precisely what they intend to do on the RMA," Townsend said, citing a discussion paper released last year and speculating on the value of rolling together aspects of the Auckland Housing Accord with the RMA. Changes could bring more affordable houses to Auckland and Christchurch.

Auckland housing developer Mark Hackshaw wants the Government to control local body charges and expressed desperation about massive cost rises creating residential subdivisions.

Ten years ago, reserve contributions to the council and water charges were $5050 per residential lot, he said, covering development contributions including roading and reserves, as well as sewage and stormwater charges.

"Now, it's $30,000-plus per lot. Surveyors' costs have increased, engineers' costs are up, it's a $15,000 minimum to the council [development contributions] and $15,000 for water charges minimum," he said.

"If National were serious about more affordable housing, they would look closely at getting councils to control their charges. They've gone overboard because they're worried about their backsides and litigation."

Post-election property issues

• Foreign real estate buyers
• Resource Management Act reform
• Housing affordability
• Capital gains tax.