KEY POINTS:
Speculators are hunting Auckland's urban fringes for landbanking deals. Like bounty-hunters riding the boundaries, groups of millionaires and wealthy migrants are looking to lock away land on the city's rural outskirts for big gains.
In one case, landbankers are being enticed to buy a large block of Papakura land being marketed as "strategic".
The rambling rural block on Auckland's outskirts lies on the rural side of the metropolitan urban limit that ringfences the city from the countryside.
"Rarely does a significant land holding of 35ha which borders an industrial estate become available for sale," said agent Shane Snijder of Bayleys, who is selling the land owned by two brothers. A third brother is selling an adjoining 15ha.
Tenders closed on Wednesday.
"Don't miss this land bank opportunity," Mr Snijder said in advertising the property.
Rex Gazzard of Bayleys Papakura said landbanking was rampant around Auckland's outskirts and savvy investors could easily double their money in a couple of years if they bought the right blocks.
This week's parliamentary inquiry into housing affordability heard a clamour of submissions pleading for urban limits to be lifted and more sections freed up for subdivision around the fast-growing Auckland.
Demographia, which publishes an annual housing affordability survey, the Property Council, which represents investors, and the Master Builders Federation all called for urban boundaries to be lifted.
Some criticised the Auckland Regional Council for restricting land supply.
Because land is the single most expensive component in housing, they all argued that freeing up more sections would help ease the country's housing crisis.
But the ARC's submission counterattacked, hitting out at those wanting Auckland to sprawl into rural-zoned areas.
The city had more than enough urban land and sensitive rural and coastal areas must be protected, it said.
Mr Gazzard said landbankers knew it was possible to make a fortune by buying strategic blocks on Auckland's perimeter.
Wealthy migrants from China, Taiwan and Korea were particularly active, hunting for those opportunities, he said.
"But they don't like tenders. They prefer to negotiate one-to-one rather than compete against others," Mr Gazzard said.
Wealthy investors such as millionaire Hugh Green, on the National Business Review Rich List at $190 million, own more than 1000ha around Auckland's outskirts but he bought it as farmland three decades ago.
Mr Gazzard said rural land on the city's southern outskirts went for around $16,000 a hectare but land-bankers were offering double or more in many cases because they knew the potential gains were huge.
Wealthy South Aucklanders - particularly the Urquhart and Yates families - held strategic blocks but these families were third and fourth-generation land owners, he said.
Pukekohe farmers could also be regarded as landbankers.
"Farmers are landbankers in a way," Mr Gazzard said.
Rick Martin, the North Shore developer and property owner, said he could not afford to landbank because land prices and interest rates were so high.
Martin has large holdings at Albany, Silverdale and Waimauku.
GIVE ME LAND
* Auckland has 559sq km or 55,933ha of land within its metropolitan urban limits.
* Auckland Regional Council says this is enough for 16 to 25 years of demand.
* It estimates 44 years of capacity outside the limits to meet demand for rural lifestyle lots.
* Since 2001, consents were granted for 52,000 new houses within the city's limits.
* That was 60 per cent up on the number of new housing consents from 1991 to 1996.
* Wealthy landbankers are scouting the city's fringes to buy blocks for big profits.
* They are counting on councils expanding the limits and re-zoning the land for houses.
