announcement of a new city in Drury, south of Auckland is very exciting and
represents a much needed shift in the way New Zealand plans and funds urban
growth, but it is not yet clear whether housing in the new city will be
affordable or supports Government aspirations for competitive land supply,”
says Infrastructure NZ CEO Paul Blair.
“The new Drury
development takes some concepts from Infrastructure New Zealand’s October 2017
‘Innovation City’ report on how to create a satellite city.
“The Government is
integrating housing and employment via $2.4 billion in strategic transport
links around Drury, which was announced in January as part of $6.8 billion in
Government transport infrastructure investment.
“We applaud this
new delivery partnership with local government and the private sector.
“The old model of
permitting growth and then trying to retrofit transport and other
infrastructure has resolutely failed, resulting in high infrastructure costs,
constrained housing supply and poor urban outcomes.
“On the back of
today’s announcements, property owners, developers and housing providers have
been let off the leash and we should now see housing and development at scale
and aligned with a shared vision for Auckland’s south.
“Of importance to
all New Zealanders is that the $2.4 billion of Government transport investment
will unlock over 40,000 homes.
“If these homes
sold for Auckland’s median home value of around $900,000, $36 billion in
residential development activity would be generated. The Government would yield
$5.4 billion in GST alone – more than twice its transport investment.
“Add in commercial
and other development and it’s no exaggeration to say that the Drury project is
a $50 billion initiative built off just a $2.4 billion transport injection.
this new approach is to be commended, it is still not clear whether it will
materially shift the dial on Auckland’s housing crisis.
“Auckland does not
need 40,000 million-dollar homes, it needs 40,000 five hundred-thousand dollar
“Unfortunately, land rezoning around Drury has been anticipated for many
years, meaning land prices have already escalated in expectation of public
affordable housing will now be difficult, if not impossible, without public
subsidy and developers will be under pressure to manage housing supply to
maintain land values.
“For the Government
to really get on top of housing in Auckland and other growth areas, more
announcements like today’s will be required.
“This will generate
competition in land markets, discouraging land banking and speculation, and
will provide government with the ability to negotiate with land-owners for
“We agree with
Minister Twyford that this is a very rare New Zealand example of the
infrastructure ‘cart’ coming before the housing ‘horse’.
should seize the chance to scale this model up dramatically to the regional
level around new, co-designed spatial plans.
Zealand calls for most of the unspent $4 billion capital allowance to be
applied in the May Budget to the fifth, unfunded limb of the Crown’s Urban
Growth Agenda, Urban Growth Partnerships.
Zealand’s 2019 Building Regions report provides a framework for how
urban developments such as Drury can be incorporated into larger regional
spatial plans to deliver cheaper, high quality housing but also co-designed and
integrated schools, industrial areas, hospitals and transport links.
“If we can manage this in Drury, just imagine what cheaper, faster,
better quality outcomes can be achieved for all New Zealanders through a
regional growth partnership model,” Blair said.
For further information and comment contact Paul Blair on 021 902 436