Author:Harshal Chitale, Auckland Council Chief Economist
Source:Auckland Council Chief Economist
High land value areas are those that are the most desirable; land values rise because they hold greater amenity.
Areas with high existing land values tended to receive less new housing capacity through the Unitary Plan process.
This relative shortage of new capacity in high value areas meant that the few properties that were upzoned in those areas received higher property value increases.
Ironically, these higher premiums to upzoned properties in existing high value areas make commercially feasible development harder there.
Auckland’s population has increased sharply over the last five years. Over the next 30 years, it is projected that we will need to accommodate up to a million more people within the region’s boundaries.
The Unitary Plan was a key response to this need. This land use regulation rulebook significantly expanded the building potential on land parcels across the region (“upzoning”). ...
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