Scoop has an Ethical Paywall
Work smarter with a Pro licence Learn More

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

 

Planning Regulations and Costs

Planning Regulations and Costs

Yesterday, Grant Spencer, the Deputy Governor of the Reserve Bank of New Zealand made a speech about reducing housing imbalances. His speech quoted a working paper by Motu Economic and Public Policy Research - a not-for-profit, non-partisan research institute - titled Impacts of Planning Rules, Regulations, Uncertainty and Delay on Residential Property Development. The paper was funded by The Treasury and the Ministry of Business, Innovation and Employment.

In writing the paper, Dr Grimes and his co-author, Ian Mitchell, talked to developers about the costs imposed by regulation and regulation-related uncertainty in Auckland.

Excluding the cost of Watercare and reserve and development contributions, the study found that the typical cost range of the total impact of regulations in Auckland varied between $32,500 and $60,000 per dwelling in a subdivision. In terms of affordable apartments, the impact on total cost typically was estimated to range between $65,000 and $110,000 per apartment, assuming the total internal floor area remains the same and no deck is built.

“This study wasn’t a cost-benefit analysis of council planning approaches. Instead it documents developers’ perceptions of the costs of the rules and regulations. The aim of the paper was to provide a basis for benefits to be compared,” said Dr Grimes.

“Regulators should consider the costs and benefits of new and existing regulations, but in this case that doesn’t appear to have happened. Our paper was really the first step and Auckland Council is now examining the benefits and costs of regulations and planning rules[1] that affect residential property development.”

ENDS

Advertisement - scroll to continue reading

Are you getting our free newsletter?

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.

© Scoop Media

Advertisement - scroll to continue reading
 
 
 
Business Headlines | Sci-Tech Headlines

 
GenPro: General Practices Begin Issuing Clause 14 Notices

GenPro has been copied into a rising number of Clause 14 notices issued since the NZNO lodged its Primary Practice Pay Equity Claim against General Practice employers in December 2023.More

SPADA: Screen Industry Unites For Streaming Platform Regulation & Intellectual Property Protections

In an unprecedented international collaboration, representatives of screen producing organisations from around the world have released a joint statement.More

 
 
 
 
 
 
 
 
 
 
 
 

Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.