Unitary Plan proving profitable for some
Auckland’s new unitary plan is already paying dividends for some homeowners.
New data from Homes.co.nz shows areas that are marked to become high-density zones under the new plan are selling at a clear price premium as developers eye up their subdivision potential.
The plan was signed off last year, although it was not until February that the High Court ruled in favour of some of the plan’s new high-density zones.
Property website Homes.co.nz shows the changes are already having an impact.
More than half the properties sold within the new highdensity zones have changed hands for more than one-anda-half times their CVs.
Only 31.7 per cent of properties in ‘‘single-house’’ zones are getting that premium.
‘‘It’s becoming clear that the Unitary Plan is having a significant impact on the wealth of those lucky enough to own a sub-dividable property in a high-density zone,’’ Homes.co.nz spokesman Jeremy O’Hanlon said.
He said buyers who did not have plans to subdivide should be wary about buying places in higher-density areas because they would pay a premium.
He said Homes.co.nz was adding unitary plan infor- mation to its property listings.
ASB chief economist Nick Tuffley said the plan changes would put a floor under the persquare-metre cost of land in Auckland.
‘‘But at the same time it does encourage that land to be used more efficiently,’’ Tuffley said.
Without greater density, the cost of inner-city land would increase anyway as people sought property close to the city, he said.
‘‘Freeing up land and making sure there is adequate infrastructure [to build] helps take away price tension that has been there for quite some time.’’
Gareth Kiernan, chief forecaster at Infometrics, said the plan changes were necessary for the city.
‘‘Land prices were already getting too high to enable people to own traditional-sized sections,’’ Kiernan said.
‘‘The changes in the Unitary Plan have been a necessary step along the way and should result in lower property-price-toincome ratios, albeit recognising that the reduced average amount of land per dwelling could effectively be interpreted as a reduction in ‘quality’.
ASB chief economist Nick Tuffley says the plan changes will put a floor under the per-square-metre cost of land in Auckland.