Satellite town residential development land for sale

Friday, 7 August 2015, 1:22 pm
Press Release: Bayleys

Satellite town residential development land placed on the market for sale

A large block of urban residential development land on the fringe of one of Auckland’s burgeoning northern rural satellite towns has been placed on the market for sale for the first time in 85 years.

The 87 hectare block borders Wellsford’s current urban boundary and contains multiple different land use designations. Under the Proposed Auckland Unitary Plan, some 78.59 hectares is zoned Rural Countryside Living, 7.82 hectares is zoned Future Urban, and a little more than half a hectare is deemed Residential.

The dual residential zonings allow for the construction of new residential suburbs containing a mix of medium density to lifestyle block configurations. Meanwhile, the
Future Urban classification is a transitional zone which allows for land to be used for rural activities until it is released for development as infrastructure needs are planned and provided for.

In the longer term, the future urban zoning ultimately defines potential land usage as anything which supports the establishment of new communities – including residential development, retail and business activities, schools, healthcare facilities, roads, electricity sub-stations, parks, and public transport hubs.

The flat to gently undulating land is bordered by School Road and Worker Road and is currently operating as a grazing farm. The site is being marketed for sale by tender through Bayleys Warkworth. Tenders close on August 12.

Bayleys Warkworth salesperson John Barnett said the property’s pending Future Urban zoning would support Auckland Council’s drive to increase the population of satellite towns on the isthmus – such as Helensville, Tuakau, Kumeu, Pukekohe, and nearby Warkworth.

“The development of this land would ideally reflect a visionary new owner who can see a growing Wellsford over the coming decades – with a thriving residential population, many of whom will be commuters to Auckland thanks to an improved roading network supported by the ability to live in a semi-rural township,” Mr Barnett said.

“Town planners are increasingly looking at what residential enclaves can be created around town fringes.

“For Wellsford, the aim of this strategy is to divert as much non-essential ‘local’ traffic from State Highway One out to the town’s western fringe. That spread would ensure motorway traffic flows are kept as smooth as possible, and congestion delays for motorists passing through Wellsford are kept to a minimum.

“With up to 87 hectares – or 215 acres - of land able to be developed, the block offers developers economies of scale for the construction of medium to large adjoining residential sections.”

Mr Barnett said that as per hectare asking rates for large-scale development sites on Auckland’s northern and southern metropolitan urban limits had risen in the region of 20 percent over the past two years, developers were now having to stretch their horizons even further.

He cited sales values of three other farms in the region which had been sold to lifestyle block residential developers. The properties were:
• 185 Sandspit Road in Warkworth – a 79.33 hectare former dairy farm which sold in December 2012 for $4.48 million at a per hectare rate of $56,473
• A 55 hectare grazing block in Matakana Road, Warkworth, which sold in May 2012 for $2.25 million at a per hectare rate of $40,909
and
• 383 Rodney Street in Wellsford – a 36.71 hectare property which sold for $1.65 million in July 2014 at a per hectare rate of $44,937.

“Constraints on the availability of medium to large-scale greenfield residential development opportunities has been cited as one of the major factors contributing to Auckland’s new build costs being so high,” he said.

“The opening of the Puhoi tunnel express highway in 2009 and its pending extension further north firstly to Warkworth and then onto Wellsford, have considerably shortened travelling times to and from Auckland. This evolution of the motorway will really bring Wellsford into play as Auckland’s northernmost satellite town.

“With Aucklanders also moving north to Warkworth, we are also noticing a number of Warkworth home owners consequently moving up to Wellsford. Based on those other comparative sales, and taking into account inflation and increasing land values, we’d expect this School Road/Worker Road block to be worth more than $3.5 million.”

Mr Barnett said that two decades ago the Wellsford property probably would have only been of interest to farmers looking at operating the block as grazing pasture.

“However, as the pressure on Auckland’s housing supply chain and supporting infrastructure has become tighter, developers have been looking further and further afield to identify opportunities with scale. As a result, this land has moved from being a purely rural location,” he said.

Mr Barnett said the site contained multiple potential access points from its lengthy road frontage. The block is just a few hundred metres from Wellsford Primary School and Rodney College.

Holding income on the farm can be derived from letting a trio of three-bedroom dwellings, or potentially leasing the land as a grazing block. A virtual tour of the property can be viewed at www.umoview.co.nz/13248

ENDS

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Bayleys Real Estate

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Bayleys is New Zealand's largest full-service real estate company. We offer expertise in the marketing and sale of a wide range of property, including residential real estate, farms and lifestyle blocks, and commercial and industrial property. This includes tourism and business sales such as hotels and motels. We also cover the real estate markets in Fiji and other Pacific Islands.

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