Unpacking This Revival:
Housing Minister Phil Twyford is reviving a National-led initiative to provide thousands of new dwellings in Whenuapai and Redhills. The initial plan introduced under the National government last year set a $300 million dollar budget to provide services for 10,500 homes – at roughly $28571 per home. This was revised by Twyford and Auckland mayor Phil Goff who recently announced services for 7000 new homes with a slightly higher budget of $339.2 million dollars. It should be noted both initiatives aren’t under supply-side interventions like KiwiBuild, instead they attempt to provide the necessary infrastructure to support growth in the areas.
Under the new plan, central government will loan the council $339.2 million dollars from the Housing Infrastructure Fund (HIF) with ten years being interest-free. This equates to $48457 per house, on a comparable basis this is an increase of 70% from National’s scheme. Infrastructure that will be provided in response to this grant includes wastewater mains, pump stations and stormwater management. Arterial road improvements and bus/cycle lanes will also be supported.
Controversy:
While critics compare the previous National-led scheme, it’s lower budget and higher delivery, Phil Twyford criticised the previous government’s ‘wishful thinking’. A report to the council’s governing body last year in April criticised the previous scheme in terms of promoting development in the wider area that the council couldn’t afford.
“So last year’s $300m package has become $339.2m and last year’s 10,500 houses have become 7000.” – NZ Herald
While the debate between different governmental policies has taken centre stage, others are critical of housing provision in this area regardless of any scheme that may be in place. Apartment developer Mark Todd criticised greenfield development that typically occurs in these areas, stating that “most Aucklanders don’t really want to live out in these far-flung zones.”
Concluding With The Facts:
The image below depicts a multi-unit commercial town centre development in Whenuapai that was recently consented in June. Colliers International site sales broker Josh Coburn described Auckland’s northwest as “the fastest growing region in New Zealand.” Coburn explained Whenuapai’s proximity to the western arterial route which provides “excellent accessibility to the north and south” as a contributing factor. The Northwest is perceived by many, including Coburn, as a potential haven for lifestyle, recreation and housing. However, apartment developers like Mark Todd remain critical of greenfield enabling tactics. This suggests that regardless of government policy/funding provisions, there will be a general push for development in the area. The fact this was pursued by both Labour and National only reinforces this.
One of Whenuapai’ many greenfield sites shown in the below image sits comfortably within the Unitary Plan’s ‘Future Urban Zone’, it comprises 43ha of land. This land went on sale in February. Such growth will exaggerate the need for government funding in the provision of services.
We’d love to hear your opinions, do you guys think government policy should further enable development on rural grazing land like this? Please engage with us in the comment box below. For those of you who are interested in the realm of housing we’d invite you to check out our articles on KiwiBuild and Wellington’s housing crisis.