What is the implication of the release of the new zonings in the Proposed Auckland Unitary Plan?
Sep 6, 2016
With the Proposed Auckland Unitary Plan being confirmed and numerous zone changes coming into effect, there is now a significant increase in the supply of land capable of supporting higher density residential properties. Many passive investors are now sitting on development land and are casting an eye to the resource consent process and also to development itself. Others are selling their assets with a price tag that perhaps only land-bankers and developers can pay. It will be interesting to see if these changes lead to an increase in supply of development type assets.
What is the implication?
We will see a flight to quality, with respect to both the quality of the development land being developed and also the quality of the developers, with well established, well-funded, proven developers navigating their way through these changes far more successfully.
In the meantime, we are still seeing strong demand for land based / development properties, notwithstanding some parties are taking a slightly more cautious view of these types of assets. Properties with income are still in huge demand as investors look to improve returns in this low ‘cash rate’ environment.
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