Navigating New Developments in New Zealand’s Housing Sector: What Property Managers Need to Know
23 August 2024
In 2023, the National Party made a bold promise to tackle New Zealand’s housing crisis. Their commitment to reforming housing policies and zoning laws aimed to address the pressing need for more affordable housing. As the landscape of property management evolves, it’s crucial to stay informed about these changes and their implications. Here’s a summary of recent developments in the housing sector and what they mean for property owners and managers.
National Party’s Housing Plan: A Snapshot
In their 2023 campaign, the National Party pledged to reverse some of the zoning reforms introduced by the Labour government. These reforms were designed to increase the supply of affordable housing by relaxing planning rules and expanding zoning permissions. The National Party’s plan sought to address concerns about the pace and scale of new developments under the existing framework.
Government’s Response: New Planning Changes
In response to the National Party’s push, significant changes have been announced in the housing sector. Housing Minister Chris Bishop recently unveiled a series of new planning measures aimed at boosting housing growth across New Zealand. These changes include:
- Establishment of Housing Growth Targets: New targets for Tier 1 and 2 councils to meet specific housing growth goals.
- Expansion of Urban Areas: New rules allowing cities to extend further into surrounding areas.
- Strengthening Intensification Provisions: Enhancements to the National Policy Statement on Urban Development (NPS-UD) to support more intensive development.
- Promotion of Mixed-Use Developments: New regulations requiring councils to facilitate mixed-use developments in urban areas.
- Removal of Minimum Requirements: ending of minimum floor area and balcony requirements for apartments.
- Optional MDRS for Councils: New provisions making the Medium Density Residential Standards (MDRS) optional for councils.
These changes are designed to free up land for development, remove unnecessary planning barriers, and ensure abundant development opportunities. The goal is to make it easier to build new homes and address the housing shortage more effectively.
Impact on Property Development
The recent shift in planning rules and zoning reforms has had a tangible impact on the property market. The relaxation of these regulations has led to an increase in new housing projects, with developers eager to capitalise on the new opportunities. This influx of development is expected to improve the availability of housing and offer more options for potential homeowners.
However, these changes also come with challenges. Property owners and developers must navigate the new regulations, which may alter the dynamics of land use and project planning. The adjustments in zoning laws could influence property values, development timelines, and investment strategies.
What This Means for Property Management
As property management experts, Vertigro is well-positioned to help clients navigate these changes. Understanding the evolving landscape of zoning reforms and housing policies is crucial for effective property management. Whether you’re a property owner, developer, or investor, staying informed and adaptable is key to leveraging new opportunities and addressing potential challenges.
At Vertigro, we pride ourselves on being at the forefront of property management knowledge. Our team is equipped to provide valuable insights and guidance as the housing sector continues to evolve.
For more information on how these developments might affect your property management strategy, feel free to reach out to our team of experts.