Two more SHAs further strengthen supply of housing in AK

Two more SHAs further strengthen supply of housing in Auckland

Housing supply in Auckland will not be a significant 2017 election issue simply because a lot of the issues highlighted and debated over the past few years will be well addressed or advanced by then, says Auckland property financier James Kellow – Director of New Zealand Mortgages & Securities.

Mr Kellow’s comments follow the recent Ministerial announcement confirming another two Auckland Special Housing Areas in Glenbrook and Drury which are expected to deliver an additional 1,800 dwellings in the coming years.

“One of the big things that’s making a major difference are the Special Housing Areas (SHAs). A staggering 86 SHAs have now been approved in Auckland, with more on the way as the council and developers continue to consider more locations as suitable for SHAs.

“The forthcoming earthworks season starts on 1 October and I predict it will be the busiest in terms of actual sections created.

“The Housing Accords & Special Housing Areas Act 2013 was always going to take a year or two to deliver some tangible results given the fact that the subdivisions still needed to be designed and approved, the bulk infrastructure provided, and the houses consented and built. However we’re away now and over the next 18 months we will see bricks and mortar sprouting like grass.”
“We’ve recently seen some real action with a doubling in the annualised number of new building consents issued in Auckland since 2011. What’s more apartment units are making up a large proportion of new building consents – something we haven’t seen for since 2007.”

Mr Kellow notes that the Auckland Housing Accord set a target of 39,000 new sections and dwelling to be consented over three years. Around the mid-point at 31 March 2015, 16,734 sections and dwellings had been consented, with officials confident the three-year target will be reached.

“The current Government hasn’t necessarily got all the answers and at times the Auckland Council has not handled the issue perfectly, but with SHA and apartment construction now starting, the Auckland housing problem is being addressed. The more recent decision to open up of surplus government and Auckland Council-owned land for housing will also help.

“When you stand back and consider the collective measures from the Government, Auckland Council, the IRD and the Reserve Bank taking effect and delivering results over the next two years, it’s very hard to believe that ongoing talk of an Auckland housing crisis is credibly going to resonate with voters come 2017,” says Mr Kellow.

ENDS

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