As of September 6, 2016, the average house price has exceeded NZ$1 million, and debate continues as to the cause of the crisis. The identified culprits include immigration (in the year to June 2016, net migration was 69,000 people, of whom more than half have indicated an intention to live in Auckland—this equates to an estimated 650 additional people arriving in Auckland every week), a regulatory regime that means that getting council consent for a new development is both time-consuming and costly, and a lack of land supply. This latter category includes limitations imposed on
Auckland is currently grappling with a housing crisis.
For surplus land held by the council (or the crown) that may be able to be used for residential development, the council has a number of choices to make. The first is whether or not to sell. Once the decision to sell has been made, the council has a responsibility to not only realize the best price possible for the land (to the benefit of
The council has a vision: to make Auckland the world’s most liveable city. This year it has been assessed by Mercer to be the world’s third most liveable city and the eighth by The Economist. Auckland has been gifted an excellent head start by nature, too: the city is next to a beautiful harbor (although the council-owned port on the waterfront is unfortunate) and has a fantastic climate that is rarely unpleasantly hot or unpleasantly cold.
In considering what to do with surplus developable land, the council needs to consider whether the development of that land could assist with Auckland’s global ambition. In many
The council has a vision: to make Auckland the world’s most liveable city.
The council is developing a good track record
That the council has an internal champion. This requires a council officer who will own the success of the project. The council side of the transaction will inevitably need the approval of many internal stakeholders. The internal champion will need to manage all of these internal stakeholders and translate their multiple demands into a commercial transaction that can be understood and agreed to by the private sector.
That the council’s objectives for the development properly recognize the market for the development—the development risks and commercial risks.
That the council properly understands the assets and value that it is contributing to the development and the opportunity cost of ongoing council intervention in the development outcomes.
That the council recognizes it is entering into a mutually beneficial partnership with the private sector, not a relationship of master and servant.
The private sector is looking forward to continuing the journey with the council and, together, making Auckland the world’s most liveable city.