Land-banking ads ‘shameless’

Hundreds of properties advertised on Trade Me as land-banking opportunities are an example of a practice as old as cities themselves, Housing Minister Nick Smith says.

More than 200 properties are being advertised as land-banking chances, with many referencing intensification allowed under the Unitary Plan as a selling point.

The new rulebook to squeeze in a million more residents by 2041 — which tells people what can be built, where and how high buildings can go — was passed this month.

Real estate agents say land in areas marked for upscaling could gain in value considerably.

Labour leader Andrew Little says the “shameless” ads show the need for a crackdown on speculators. He pointed to 1.9ha in Papakura being listed as an “opportunity to own this land bank”. It sought $4.5 million but was sold just 12 months ago for $2.56m. The ad noted the property was “future urban” in the Unitary Plan, “making this an excellent investment for your future”.

Confronted with some of the ads yesterday, Smith said they did not show anything particularly new.

“Interestingly, I picked up an article from the 1880s in Nelson, [about] people speculatively buying up land on the fringe of the town with the hope that it was one day going to be urban and increase in value.

“If we have a well supplied market like Christchurch . . . there is little economic incentive to land bank.”

— Nicholas Jones