We now have had 3 tranches of the government Special Housing Areas announced over the past year. The first tranche in October 2013, second in December 2013 and the third in May 2014. In brief these are defined areas that allow developments to be fast tracked through special consenting procedures, and the zones and rules from the Proposed Unitary Plan are applied. So far there are 63 individual SHA’s, collectively allowing 33,486 houses. The latest monitoring report shows that 18 of these developments have received a Resource Consent, 4 more applying for a Resource Consent, and another 36 at various pre-application stages.
However the location and typology of these houses really matters for a variety of reasons. While fringe housing may appear cheaper, once transport costs are taken into account this is not always the case. Housing in existing areas also utilise existing infrastructure and public transport, while this must be added from scratch in fringe areas. Then of course there is market demand and changing trends, over the last few years prices have appreciated most rapidly in the inner suburbs, though this is now starting to spill out all over the isthmus.
Therefore I have looked at the SHA’s using several different measures. Firstly a classification that looks at the type of development land. ‘Brownfield’ means inside the existing built up area. “Greenfield – within the MUL” are developments that are within the Auckland Regional Council’s urban limits. They are new developments from bare land, however will adjoin the existing urban area. Importantly these areas have undergone substantial planning, such as for infrastructure, as there has been an expectation that these sites will be developed within the near future. “Greenfield – outside the MUL” is land that is within the Rural Urban boundary in the Unitary Plan, however outside the MUL. The only planning that has gone on in these areas would be broad brush work during drafting of the Unitary Plan.
|Greenfield- within MUL||10,411||31.1%|
|Greenfield – outside MUL||9,814||29.3%|
The Auckland Plan set a goal of up to 70% of development to be infill, and up to 40% greenfield. However crucially the plan set the current MUL as the boundary from which to measure from, so these greenfield developments are counted as infill! Therefore this is spot on with the Auckland Plan target, though not really the long term intent of where growth should be.
Within the Brownfield developments, these can be further classified into Strategic, Housing NZ led, and private or community led. Strategic areas were identified only in the 3rd tranche. These were wider scale areas that did not have any specific developer interest, however were identified by the council as being well suited for future development and having good existing infrastructure. A large amount of the SHA’s identified in the 2nd and 3rd tranches were led by Housing NZ, which were redevelopments of areas of state housing into higher intensity. However this only leave 3037 developments led by the private sector inside the existing urban area, which is only 9% of the total.
It is useful to look at the general geographic area of each of the SHA’s, so to do this I have looked at which former council area they would have fallen in.
This shows up some interesting aspects about the locations of the SHA’s. Very few are in North Shore City, while over a quarter of them are in Waitakere. Also only 16% are in the former Auckland City area which seems to be have the highest housing demand. This area also has the best access to jobs and tertiary education so increasing housing here needs to be a high priority.
Within the Greenfield developments I have looked further into the locations, and classified into general geographic areas.
|North-West (ie Kumeu, Westgate, Hobsonville)||8,950||44.3%|
|North (north of Albany)||876||4.3%|
|Southern Corridor (Takanini, Papakura, Pukekohe)||4,834||23.9%|
Once again the large number of developments in the North-West really stands out, while there is only a small number to the north of the city. While this does not cover all the development underway, is does give a good idea where major development will occur over the next 5 years and more.
Another tranche of SHA’s are currently under consideration by the Council’s Housing Project Office, with the timeline as follows.
While their is no opportunity for direct public input, both local board members and councillors have substantial say over which areas get approved. Local board members are able to scrutinize local projects, and all SHA’s have to pass votes in the Auckland Development Committee and the Governing Body.
Looking at the numbers above there seem to be enough sections approved outside the MUL for the time being, but not nearly enough in areas of high demand. Therefore it would be great to see the 4th tranche being focussed on existing urban areas, with nothing outside the MUL.
The locations of these developments should help shape where infrastructure and transport investment is focussed coming into the next Long Term Plan. Areas of little growth should see projects move down the priority list, and sometimes disappear from the 10 year plan altogether. The speed of development in land outside the MUL is likely to cause the council and other infrastructure providers some issues. The effects of these SHA’s will be the subject of my next post.