Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


New Zealand Lifestyle Blocks: Planners Sprawl in Overdrive

NZ LIFESTYLE BLOCKS:

PLANNERS SPRAWL IN OVERDRIVE

Hugh Pavletich

Performance Urban Planning

Christchurch

New Zealand

26 July 2014

It seems there is a massive boom in ultra-low density urban development, commonly referred to as lifestyle blocks, if The New Zealand Herald article by Nikki Preston … Ride-ons cut new figures in auctions is any guide. Ms Preston reports …

“Heavy-duty mowers are quickest growing sales item on Trade Me.”

“Forget Mustangs, fishing gear or big-screen TVs - ride-on mowers are becoming the ultimate boys' toy.”

“The grass-cutting machine is one the fastest-growing categories in sales on auction site Trade Me in the past year.”

“Spokesman Jeff Hunkin said online bidders had purchased about 4500 ride-on mowers over the past year compared to 3500 last year.”

" ‘We expect that to keep growing at about 25 per cent a year’ he said.”

“The biggest month-on-month sales increase over the past year was in March where Trade Me saw 62 per cent growth on the previous March.”

“The category is up 24 per cent in sales for the year ended June 2014, compared to the previous year.”

“Other categories averaged between 2 and 5 per cent growth a year.”

“He put the impressive growth for both new and second-hand ride-ons down to an increasing number of people owning lifestyle blocks with lawns large enough to warrant one.”

As explained back in 2007 within New Zealand Lifestyle Block Mythology , New Zealand has a land area of 268,680 square kilometres and (now) small population of 4.545 million .

New Zealand is much the same land area as the United Kingdom with its population 63.5 million ).

Today there is likely less than 1,900 square kilometres or about 0.70% of our total land area “serviced urban area”.

But there is more to it than that.

What are commonly referred to as lifestyle blocks are in reality “ultra-low density urban development”.

These lifestyle blocks are generally created as people … and families in particular … flee the urban planners artificially created excessive land values within the serviced urban areas.

Preference always trumps policy.

As eminent Hoover Institution economist Dr Thomas Sowell has made clear “We have spent the past few decades replacing what works with what feels good.”

In early 2012, Gerald Piddock of The NZ Farmer with Issues on both sides of the fence , reported on research by Robbie Andrew and John Dymond of Landcare Research. Mr Piddock reported …

“The work by Landcare researchers Robbie Andrew and John Dymond showed lifestyle block numbers now numbered 175,000, an increase of 75,000 over the past 13 years and covered an area of 873,000 hectares.”

“Lifestyle blocks occupied 148,000ha (17 per cent) of high-class land, which was defined as land that could be used intensively to produce a wide variety of crops. That is 10 per cent of New Zealand's total area of high-class land.”

The Trade Me report on the massive sales lift of ride-on mowers, suggest that the serviced urban flight to ultra-low density urban development / lifestyle blocks is accelerating.

While in Australia, due to urban planners meddling with housing markets … and too … policies such as negative gearing, Land Value Tax and others, there has also been an explosion in “bubble development” apartments.

The “Melbourne Mess” is illustrated within a recent MacroBusiness Australia article Victoria to legislate against shoe-box apartments .

The MacroBusiness Australia graphs (subscription wall Whats behind Australia's apartment shift ) illustrate the serious disruption to normal housing supply … as artificially inflated land values create a gross oversupply of apartment building and a gross under-supply of conventional (real demand) stand-alone affordable detached housing …

http://www.macrobusiness.com.au/2014/07/whats-behind-australias-apartment-shift/screenhunter_3343-jul-17-08-13/

http://www.macrobusiness.com.au/2014/07/whats-behind-australias-apartment-shift/screenhunter_3344-jul-17-08-16/

Ill-informed urban planners meddling in land supply and failing to ensure infrastructure is financed properly, unnecessarily impose huge costs on society.

In the case of New Zealand, about $NZ400 billion of excessive bubble housing market value, as explained within New Zealand’s Bubble Economy Is Vulnerable .

The situation is mirrored in Australia … but only worse … due to its more complex governance structure and additional policy distortions.

Alain Bertaud, former Principal Urban Planner with the World Bank, is on a three City lecture in New Zealand this week … with the support of The New Zealand Initiative; Price Waterhouse Cooper; New Zealand Institute of Economic Research; NZ Treasury; Victoria University of Wellington and others. …

New Zealand Initiative Events

Guest Lecture: Alain Bertaud - Markets, urban planning and local democracy - Tue 29 Jul, 1.30 p.m.-3.00 p.m. at Ground Floor, Reserve Bank Museum, 2 The Terrace — The Treasury - New Zealand

As part of a widespread community ( such as New Zealand Taxpayers' Union and many others ) and institutional initiatives in New Zealand (including but not limited to the recently released final Productivity Commission Regulatory institutions and practices report ), Mr Bertaud’s focus is to discuss the importance of inculcating simple and clearly understood performance measures and disciplines in to the Local Government sector.

ENDS


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Air NZ Wine Awards: Victory For Villa Maria As Pinot Noir Thrills

It was a night to remember as Villa Maria Estate picked up one of the highest accolades of the evening, the O-I New Zealand Reserve Wine of the Show Trophy, at the 28th Air New Zealand Wine Awards. The Villa Maria Single Vineyard Southern Clays Marlborough ... More>>

ALSO:

Future Brighter Money: RBNZ Releases New Bank Note Designs

New Zealand’s banknotes are getting brighter and better, with the Reserve Bank today unveiling more vibrant and secure banknote designs which will progressively enter circulation later next year. More>>

ALSO:

Commerce: Supermarket Inquiry Finds No Breaches By Countdown

The Commerce Commission inquiry into anti-competitive behaviour by Countdown supermarkets, alleged by former Labour Party MP Shane Jones, has found nothing to warrant prosecution, although it warns supermarkets to take care in the way they communicate... More>>

ALSO:

Crown Accounts: English Flags ‘Challenge’ To Budget Surplus

Finance Minister Bill English is warning next month’s half yearly fiscal and economic update from the Treasury may not forecast a budget surplus, saying that returning the government’s accounts to surplus in 2015 will be “a challenge”, given the decline in commodity prices and weak global inflation. More>>

ALSO:

March 2015: Netflix To Launch In Australia And New Zealand

World’s Leading Internet Television Network to Offer Original Series, Movies, Documentaries, Stand-Up Comedy Specials and TV Shows for Low Monthly Price More>>

ALSO:

Price Of Cheese (Is Up): Dairy Product Prices Fall To Five-Year Low

Dairy product prices fell in the latest GlobalDairyTrade auction to the lowest level in more than five years, led by declines in rennet casein and skim milk powder. More>>

ALSO:

Gordon Campbell: On The Australians Scoring Trade Points Against Us With The Chinese

It hasn’t been a great year for Trade Minister Tim Groser... To top it off, Australia has just signed a FTA with China that has far better provisions on dairy exports than what New Zealand currently enjoys in our own FTA with China. More>>

ALSO:

Iwi & Local Consultation: Oil And Gas Block Offer 2015 Begins

Energy and Resources Minister Simon Bridges today announced the start of the Block Offer 2015 process for awarding oil and gas exploration permits. More>>

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news