Industry professionals discuss property

Whether it is an obscure technical issue only specialists understand or a housing concern that affects everyone, if you care about it and ask, YIJU New Zealand will find professionals to give you clear, thorough answers!

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With the introduction of the Medium Density Residential Standards, MDRS, do you have plenty of questions?

 

Although the new MDRS legislation will not take effect until next year, can existing designs draw on it in negotiations with councils? How have the design requirements for different types of housing changed? Once the MDRS legislation takes effect, will homes designed to meet its requirements no longer need resource consent? Could removing recession plane requirements cause disputes? Can building materials keep pace with the new construction requirements and demand? Can government decision-makers set aside the views of administrative departments and directly formulate professional regulations of such significance? YIJU New Zealand and the New Zealand Chinese Building Industry Association (NZCBIA) are jointly hosting a webinar, inviting leading figures from the construction industry to explain every aspect of the new legislation.

Specialist field: Property and construction

Professional: Frank Xu

Deputy General Manager, Shundi Group; President, New Zealand Chinese Building Industry Association

Q: With New Zealand's construction industry already facing labour shortages, building material shortages and insufficient government infrastructure funding, what broader effects will the government's sudden introduction of this radical housing policy have on the industry?

 

A: Prolonged lockdowns and border closures will negatively affect New Zealand's economy. We are also seeing far too much bad news: persistently rising inflation, global raw material shortages, soaring energy and shipping costs, and higher interest rates following increases in the OCR.

 

The MDRS legislation is the fourth new policy closely connected with construction introduced by the government since the Delta outbreak, following the immigration 'amnesty', tax deductions for new builds and the shared-equity purchase scheme for first-home buyers. I believe these are the only positive stimulus measures the government can take to ensure New Zealand's economy continues to develop healthily during the pandemic. They are also intended to help address New Zealand's housing shortage to some extent.

 

Q: What negative effects could this new legislation have?

 

A: Those living in luxury coastal homes may need to take note: your neighbour can now build a three-storey home without your written consent, even if it blocks your view. Labour and building material shortages may also worsen, affecting a wider area for longer. If you want to subdivide land, you may find planners are already booked through to 2023. Local infrastructure will also face enormous pressure. We already see many parts of Auckland where parking is impossible, and congestion will get worse.

 

I would like to urge all Chinese developers to place greater emphasis on quality and social responsibility when planning developments, whatever the policy allows. That way, our living environment can improve rather than deteriorate.

 

Specialist field: Law

Professional: Raymond Huo

Director, ChanceryGreen; former chair of Parliament's Justice Committee

 

Q: How should we interpret the Housing Supply Bill jointly proposed by the two parties, from a legal perspective and in terms of parliamentary processes?

 

Raymond：Many people may think the policy announced by the two parties stands alone. In fact, it supplements the familiar Auckland Unitary Plan and the National Policy Statement on Urban Development, NPS-UD, introducing a new concept called the Medium Density Residential Standards (MDRS).

 

Another misconception is that a new policy takes effect as soon as it is announced. Generally, a new bill must be introduced to Parliament and pass its first, second and third readings before it can be implemented. Although the MDRS legislation passed its third reading on 14 December, implementation is still some way off: Auckland and tier-one cities will begin implementing it in August 2022, while other areas may start in August 2023.

 

Another change deserves particular attention: 'Demand' has been removed from the third point of the NPS-UD. This means that when choosing a development site, only accessibility to community infrastructure centres is required.

Specialist field: Planning

Professional: Katherine Hu

Planner, Hamilton City Council

 

Q: When will the new policy have legal effect? How does it differ from the NPS-UD? What is the timetable for the new legislation?

 

Katherine：In theory, the plan changes required by the new legislation must go through three stages:

 

Stage one, from now until August 2022: evidence preparation, options assessment, engagement and plan drafting, through to notification;

Stage two, 2022–2023: submissions, hearings and decisions;

Stage three, 2024: appeals, mediation and court proceedings;

 

I believe the MDRS legislation differs from the NPS-UD in the following policy areas: well-functioning urban environments (policy 1), intensification (policy 3), non-compliant development (policy 8) and the removal of parking spaces (policy 11). The new legislation has not yet formally passed. Councils need to undertake detailed assessments and amend their plans to implement these policies, and councils in different areas will have different implementation timeframes. Policy 11 has a shorter timeframe and will have legal effect sooner. Introducing the MDRS legislation is also unlikely to fundamentally change the permitted baseline for residential land and land zoned for residential use.

 

Q: Will connections to public water pipes also no longer require neighbours' written consent?

 

Katherine：Even if the new legislation means building a home no longer requires resource consent (RC), connecting to public water pipes will still require neighbours' agreement, because the connection requires building consent (BC), rather than resource consent.

Specialist field: Planning

Professional: John Yan

Planning Team Leader, Envivo design consultancy

 

Specialist field: Planning

Professional: Kanye Kang

Senior Planner and Head of Design, Dreamhome Design Ltd

Q: How should development in Auckland's Single House Zone be planned? Will resource consent no longer be required?

 

John：The new policy will not greatly change planning in Auckland, but it will have a major impact elsewhere. Its purpose is to encourage medium-density housing development and address development land issues. The statement that 3 units can be built in the Single House Zone without resource consent can be understood as follows: up to 3 units can be built without RC, but these units will not have separate titles and cannot be sold individually. Anyone wanting to build more separately titled units will still need to apply for RC. The number is not limited to 3, provided the design meets the planning standards in the new rules.

 

I think there are two possible ways to open up detached-housing zones. First, Auckland may introduce numerous special planning overlays. Through plan changes and MDRS overlay requirements, traditional Single House and Mixed Housing Suburban zones, apart from flood and heritage areas, would gain new density allowances and development rights. The other possibility is an overarching Auckland-wide plan change that substantially increases density, although I think the first is more likely. I predict the market will demand better design. Planning rules may be relaxed, but basic design requirements will remain, making design quality more important.

 

Kanye: I also think John's first scenario is more likely: adding an overlay to low-density areas would increase the site coverage ratio from 35% to 50%. This would bring updated planning provisions for recession planes, outdoor living areas, outlook spaces, garden and landscaped areas, and impermeable surfaces. The second approach would be costly and time-consuming. Given councils' current circumstances and very slow approval processes, they are unlikely to choose it. Many people also ask me whether RC will no longer be required. In fact, there is little change: the legislation will only begin to have legal effect in Auckland next August, and it does not add a great deal to Auckland's Unitary Plan.

Specialist field: Planning

Professional: Lucy Ji

Independent Resource Management Planner, CLC Consulting Group Ltd

 

Q: How will the new legislation affect cities outside Auckland?

 

Lucy：Like many others, I do not think the new legislation will have a major impact on Auckland. We have all seen medium-density housing develop here; the difference is simply that medium-density areas will expand. For councils outside Auckland, however, the changes are substantial. They may feel new policies are arriving too frequently, with another introduced before they have fully understood the previous one. The legislation also divides New Zealand's cities into first and second tiers, providing a new direction for future development.

 

Specialist field: Architectural design

Professional: Dylan Huang

Founder, Archiland Auckland architectural design practice

 

Q: How will the new legislation affect architectural designers' work?

 

Dylan：As a designer who has designed many medium-density homes, I believe a designer's primary role is to weigh competing interests and balance developers' needs with those of residents. We must ensure sound design at the RC stage and technical soundness at the BC stage, while also balancing government approval authorities' building requirements against actual construction costs.

 

There is a misconception in construction at present: many people consider an engineer who charges little and whose work passes inspections easily a 'good engineer', while engineers who design rigorously and ensure building safety are disparagingly labelled 'conservative'. I would like to call on our Chinese construction industry colleagues to rekindle their commitment to craftsmanship and social responsibility.

 

Q: Can medium-density housing be built in flood-prone areas?

 

Dylan：In theory, yes, but it requires civil/hydraulic engineers' involvement; designers cannot decide this alone. The building's height and foundation type generally need to be determined according to the specific circumstances. For example, solid foundations may not be permitted in areas with severe flooding because they could divert floodwater onto neighbouring properties. Raised timber pile foundations that allow floodwater to pass beneath may be a better choice.

 

Specialist field: Architectural design

Professional: Noah Bian

Head of Design, Flourishing Property

 

Q: What design recommendations do you have for increasing building density in future?

 

Noah：As urban density increases, the distinctive identity of buildings will become more important. We also need accessible public green spaces and amenities for residents, encouraging sustainable travel. Architectural design should become more multifunctional, creating lively, appealing communities that offer convenient lifestyles and attract residents of different ages, incomes and cultural backgrounds. Sustainable design can draw on local environmental, social, economic and cultural factors, aiming to provide a safe, convenient wider environment that reduces hazards and opportunities for crime.

 

Interior design can integrate shared spaces such as living rooms, kitchens and dining areas, using large expanses of glass to connect indoors and outdoors. Smart home systems do not need to be incorporated at the design stage, because Aucklanders increasingly seek simpler living. Complex technical systems, including smart lighting, will become less popular. People realise high-tech products become obsolete quickly, so they are generally unwilling to pay for expensive high-tech home fittings.

 

Specialist field: Architectural design

Professional: Wang Bo

Director, architectural design firm Infusion Arch

Wang Bo: From a design perspective, I think we need to consider the functionality of future projects. Key considerations include how shared activity spaces will be used, electric vehicle and e-bike use, residents' garage requirements, rubbish disposal and recycling, and demand for home offices in the post-pandemic era.

 

Specialist field: Architectural design

Professional: Shawn Zhang

Design Manager, Huadu development company, Christchurch

 

Q: What problems and challenges are you currently encountering when seeking design approvals in Christchurch?

 

Shawn: For us in Christchurch, the hardest part of resource consent is urban design. Requirements in medium- and high-density zones are extremely demanding, and the assessment criteria are subjective, making communication with assessors difficult. As in Auckland and elsewhere, approvals are also very slow. This is because Christchurch outsources RC assessment decisions to third parties outside the council. BC requirements are also applied very strictly in Christchurch, mainly because of fire safety issues, and this is closely linked to the outsourcing of assessments.