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Home / New Zealand

Rural lifestyle land in plentiful supply, says ARC

By Wayne Thompson
22 Apr, 2007 05:00 PM4 mins to read

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Demographer David Lindsey says it will be many years before land subdivision potential is exhausted. Photo / Hawke's Bay Today

Demographer David Lindsey says it will be many years before land subdivision potential is exhausted. Photo / Hawke's Bay Today

KEY POINTS:

Despite the strong demand for lifestyle blocks around metropolitan Auckland, research shows there is the capacity for 28,000 titles - enough for 44 years' supply - without freeing up rural subdivision rules.

Defending pressure for relaxed policies on further countryside living zones, the Auckland Regional Council commissioned demographer
David Lindsey to find out the potential existing supply.

The result was reported on Friday to commissioners who are considering growth and rural issues as part of proposed plan changes to the district plans of seven councils.

Mr Lindsey said apart from rural towns, "a significant and latent stock of rural sites exists that could be developed or further subdivided".

At the present rates of uptake, about 650 lots a year, it would be many years before land subdivision potential was exhausted.

Mr Lindsey said his figures were conservative and were based on lots ranging from 8ha to 400sq m.

ARC policy implementation group manager Hugh Jarvis told commissioners there was a broad belt of countryside living around metropolitan Auckland. One reason it was focused there was to reduce the transport effects of countryside living compared with rural areas further away.

In the mid-1980s, district plans began to introduce provisions such as "bush lots" where a subdivision right was given in exchange for the permanent protection of native bush.

Such provisions were later expanded with other provisions aimed at environmental enhancement or more intensive farming.

Mr Jarvis said these provisions had led to a more extensive and dispersed countryside living.

"In my opinion, there is more than adequate opportunity for people to undertake that particular lifestyle choice."

Research by ARC transport analysis manager John Davies showed that households in the countryside living zones travelled about 43 per cent longer distances than those living in the urban area.

Mr Jarvis said given the transport effects as well as landscape effects it was "unnecessary and inappropriate" to add to that pool of lots by changing the present planning policy.

The commissioners will announce their decision in June.

The ARC claim was challenged by Brian Putt, of Metro Planning, who said the council was guessing about the demand.

"Once a countryside living opportunity appears, in the ground, it is sold in a flash."

Mr Putt said the council also misjudged the number of people who were self-employed and financially independent and so did not need to drive into the city for work each day.

He objected to people being directed to countryside living zones, often across land that was still good for grazing and growing grapes.

Such zones barred people from opportunities to live elsewhere and to use land that was unsuitable for farming but which had living attractions, such as being near the coast, or in the hills and offering wide views.

Mr Putt said a demographic change was seeing baby-boomers cash up their wealth and move out of Auckland to find a lifestyle choice unavailable to them here.

John Allen, of Allerby Real Estate in Kumeu, said despite zoning policies, it was rare for 4ha blocks without houses to come up for sale in the Kumeu, Huapai and Muriwai areas of Rodney. A strong demand existed for blocks to build on and sale listings showed no over-supply.

Mr Allen said "land banking" had locked up many blocks from the market. Their owners were waiting for big leaps in land values when their land would be rezoned for housing subdivisions.

Last month, Real Estate Institute figures for the region showed a record 186 lifestyle blocks sold at a median price of $749,500, compared with March last year (140, $696,500) and March 2005 (136, $592,000).

Mr Lindsey said most of the existing capacity for countryside living came from the 11,300 titles where homes had not been built but which could yield 17,500 homes under present subdivision rules.


Room To Move

* Total existing capacity: 28,800 titles/homes.
* Building consents issued annually: 650.
* Existing capacity: 44 years, providing for an extra 83,400 people.
* Land is being locked in "land banks" waiting for price increases.
* Baby-boomers are cashing up their wealth to move out of Auckland to lifestyle blocks.

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