Consider economic reality of development, Property Council says

It has made a submission on the Productivity Commission’s inquiry into using land for housing.

Chief executive Connal Townsend said requirements in district, regional and unitary plans were being drafted in isolation.

“The lack of regard to how the cumulative impacts of rules and requirements affect development is inadequate, particularly in parts of the country with a housing under-supply. These plans have the ability to send powerful investment signals to the industry. If requirements and zoning fail to send a reliable, strong signal out to the market, they simply won’t attract the levels of development needed to address supply issues.”

He said council decision-makers must understand and consider how their decisions and requirements affected development and its economic feasibility.

“The Government and local authorities need real commitment to achieve this, including legislative change and culture change. Inefficiencies and delays will continue if whole councils and CCOs are not committed to enabling and increasing housing supply.”

Townsend said planning and consenting processes in many parts of the country were too prescriptive and were increasing costs. "This is most obvious in Auckland, where there is an acute housing crisis."

He pointed to the Proposed Auckland Unitary Plan, which requires developers to provide homes that meet Homestar ratings and strict urban design controls, which would work against the levels of development needed to match population growth. "The cumulative impact does not encourage dense development and more affordable houses. The PAUP and other plans throughout the country need to encourage intensification through planning rules or else make more greenfields land available.”