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Do you really know how to assess land in Auckland?

Government restrictions on foreign buyers and new rules for landlords have reduced the pool of overseas buyers and investors in Auckland’s property market, and Auckland house prices cooled noticeably in 2019. The REINZ HPI shows that in June, Auckland property prices fell 3.5% year on year, while the number of properties sold fell 3.2%, from 1,879 to 1,819. The housing shortage nevertheless persists. As Auckland Unitary Plan policies settle into place, more land is being directed towards medium- and high-density development.

Land development is a complex process that carries a degree of risk. With less land available in new development areas, more sites in established suburbs are coming onto the market.

 

For first-time developers, choosing land that is both straightforward to develop and holds its value is a major challenge. Even a small mistake can directly increase development costs and turn a project into a loss-making venture.

 

Choosing a “good” site is a particularly important prerequisite for development. What makes land “good”? How do you choose it? YIJU New Zealand asked Wayne, a planner at GUC Planning, to share some advice:

 

1. Build a foundation of professional knowledge

 

First, developers need a basic understanding of how the Auckland Unitary Plan defines the characteristics of the main residential zones, along with each zone’s restrictions on building height and the number of dwellings.

 

Auckland’s six main residential zones are:

Single Housing Zone — low density

Mixed Housing Suburban Zone — medium density

Mixed Housing Urban Zone — medium to high density

Townhouses and apartments — high density (Terrace and Apartment Zone)

Large Lot Zone — low density

Coastal and Settlement Zone — low density

 

2. Read the land through GeoMaps

 

GeoMaps, available on Auckland Council’s website, provides a wealth of important information about a site you are interested in, including:

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- Hydrology: check for nearby flood-prone areas, flood lines, and natural or artificial watercourses

- Topography: check the slope of the land; each contour line on the map represents a half-metre change in elevation

- Public infrastructure: check for nearby public stormwater and wastewater pipes

 

3. Visit the site

 

Alongside checking the condition of the house at an open home, it is very important to assess the land on site. Pay particular attention to:

  • The position of the existing house
  • Driveway width: a width of 3–3.5 m is crucial if you want to subdivide without moving the house
  • The location and shape of the site
  • The slope of the land and its water supply and drainage arrangements: check that the slope, stormwater outlets and wastewater outlets match the map
  • Trees outside the house: check for trees beyond the property boundary and assess their trunk thickness and size
  • The classification of the road outside: a main road or a quiet cul-de-sac
  • Neighbouring properties: the height and density of surrounding homes
  • Other features: check for manhole covers, telecommunications boxes, power poles or bus stops outside the property

  

4. Review the property documents

 

At an open home, the agent will usually provide 2 documents: the Record of Title and the Land Information Memorandum (LIM) report. Both are very important and need to be read carefully.

 

The Record of Title includes:

  • Easements: whether driveways, pipes or other facilities are shared with neighbours.
  • Covenants: whether any special requirements restrict development of the land. Notably, private covenants limiting building height are common in many bay areas.

 

The LIM report includes:

  • Potential hazards such as land contamination, unstable ground and flooding
  • Information on private stormwater and wastewater connections
  • Council rates and any arrears
  • Approved resource consent and building consent documents obtained through the formal application process
  • Records of legally issued New Zealand Code Compliance Certificates (CCC)

 

5. Seek the necessary professional advice

 

After following the 4 steps above and gaining a basic understanding of your preferred site, it is best to have a brief consultation with a professional to confirm your understanding. Consulting a local council planner or a private planning consultancy can usually help you achieve more with less effort.

 

 

About the author

Wayne Wang

Holds a bachelor’s degree in urban planning from the University of Auckland; a member of the New Zealand Planning Institute (NZPI) and its Auckland–North Island Branch committee; founder and director of GUC Planning.