Mini-cities set to spring up on Super City’s fringes

Auckland is preparing for a new housing boom on the rural fringes of the city that will result in small towns like Warkworth, Pukekohe and Kumeu becoming mini cities. The city’s new Unitary Plan has prompted Auckland Council to lay out a new timetable for greenfield development costing $20 billion and, for the first time, a breakdown of infrastructure problems holding housing back. Today, the council’s planning committee will consider a report to allow for 120,000 new homes at six main locations in the north, north-west and south of the city. It is expected to be approved for public consultation between March 29 and April 18.

“It would be prohibitively expensive to invest in all future urban areas concurrently,” says an officers’ report about the need to provide transport, water, wastewater, stormwater, parks and community facilities over the 30-year-plan. Auckland needs about 400,000 new homes by 2041, many of which will be smaller townhouses and apartments built within the current urban footprint, close to public transport and existing amenities.

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The Unitary Plan has increased rural land for housing from 11,000ha to 15,000ha, including “live zoning” some land earmarked for urban development in the future. This has led Auckland Council to rethink the sequencing of land for housing. Factors, like the completion of the Puhoi to Warkworth motorway in 2021, have brought forward housing plans in Warkworth, and soil testing at Takanini has pushed back 5000 new homes.

Planning committee chairman Chris Darby said the plan made it feasible to build 120,000 new homes but to make it real it has to be funded, which is a challenge for council, central government and Aucklanders. Darby said the council had to grapple with huge infrastructure costs – some of which was budgeted for, but not all. One idea in Mayor Phil Goff’s first budget is to target new residential developments with higher rates to cover the council’s heavy infrastructure burden.

Borrowing more money is not an option because the council is already up against debt levels which could cost it its AA credit rating and higher repayments. The Government, a critic of Auckland Council’s land supply pipeline for new housing, last month announced plans for locally controlled urban development authorities(UDAs) with compulsory land acquisition powers and fast-tracked resource consent processes.

Building and Construction Minister Nick Smith said the goal was to ensure enough urban land is available for housing, saying the UDAs need the powers to assemble parcels of land, develop plans, reconfigure infrastructure and build housing.
Darby said there had never been a plan for new housing in “greenfield” areas like the latest council plan. It made the timing of new developments clearer to owners of rural land and infrastructure providers and “probably put a lid on quick buck land speculation”, he said.

The six main rural areas identified for new housing are Warkworth and Silverdale/Wainui/Dairy Flat in the north, Kumeu/Huapai/Riverhead in the north-west and Takanini/Puhinui, Drury/Opaheke/Hingaia and Pukekohe/Paerata in the south. About two-thirds of the new houses are planned in the north and north-west and one-third in the south. The council is also sequencing new housing at a number of rural and community settlements from Wellsford in the north to Glenbrook Beach in the south. Other settlements include Albany Village, Hatfields Beach, Helensville, Maraetai and Clarks Beach. Water and wastewater are the main constraints holding back more housing.

In Kumeu/Haupai where the council already has plans in place for 1400 new homes – but plans for a further 6600 homes have been pushed back until after 2028 – Rodney councillor Greg Sayers is calling for an immediate start to a structure plan to cope with the changes occurring. Otherwise, he said, developers could introduce private plan changes and override where schools and other key infrastructure should be located for the community. Sayers supports the idea of running diesel trains to Huapai, saying the community desperately want a train service as an alternative to “horrific” traffic on State Highway 16.

Auckland’s latest plan to turn rural land into housing

  • Auckland needs about 400,000 new homes by 2041
  • About 70 per cent will be in existing urban areas
  • About 30 per cent will be “greenfields”, essentially turning rural land into housing
  • The Unitary Plan has increased rural land for housing from 11,000ha to 15,000ha
  • This has led to a rethink about the sequencing of land for housing
  • Some areas have been brought forward, others put back
  • Council needs to spend $6.7b on transport, water, parks and other infrastructure in the first decade alone to fund this growth and another $13b over the next two decades
  • Capacity for 32,000 houses are currently in the pipeline, mostly in the north-west and south
  • This will be followed by capacity for 21,500 houses over the next decade and 70,000 more houses between 2028 and 2047
  • In addition to major development council is sequencing new housing in many small communities, from Hatfields Beach to Maraetai

Areas brought forward

Warkworth North
Wainui East
Silverdale(business)
Red Hills
Puhinui(business)
Wesley(Paerata)
Opaheke Drury
Drury South

Areas put back

Kumeu/Huapai/Riverhead
Whenuapai (stage 2)
Drury West (stage 2)
Puhinui (business)
Red Hills North
Warkworth North East
Takanini

What’s planned and needed in the way of infrastructure

  • Warkworth

2012-2017 – Warkworth North (business)
2018-2022 – Warkworth North( 2300 houses)
2028-2032 – Warkworth South (3700 houses)
2033-2037 – Warkworth Northeast (1500 houses)

A new wastewater plant needs to be built at Snells Beach to service development in Warkworth North. Expected to take five-to-six years. Later sequencing of Warkworth South provides for the efficient staging of wastewater infrastructure. The Puhoi to Warkworth motorway is due for completion in 2021 and associated upgrades of local roads align with the sequencing of Warkworth North. Warkworth North-East occurs later to allow connections to the town centre.

  • Wainui East/Silverdale/Dairy Flat

2012-2017 – Wainui East (4500 houses)
2018-2022 – Silverdale West/Dairy Flat (business)
2033-2037 – Silverdale/Dairy Flat (20,400 houses), Wainui East (7400 houses)

Interim water and wastewater solutions can provide capacity in the short-term to service the live zoned area at Wainui East where there is a cap of 2000 dwellings at the Special Housing Area. Sequencing of remaining areas reflects the need for significant water and wastewater infrastructure, including a new water main from Albany and additional wastewater capacity at Army Bay. The proposed business area in Silverdale-Dairy Flat has been brought forward to provide local jobs, address transport issues and structure planning for this area is likely occur in 2017-2018 to live zone some business land in the short-term.

  • Kumeu/Huapai/Riverhead/Whenuapai/Red Hills/Scott Point

2012-2017 – Kumeu/Huapai (1400 houses), Whenuapai (1150 houses), Scott Points (2600 houses), Red hills (10,650 houses)
2018-2022 – Whenuapai Stage 1 (6000 houses)
2028-2032 – Kumeu/Huapai/Riverhead (6600 houses), Whenuapai Stage 2 (11,600 houses), Red Hills North (1400 houses)

The sequencing of work in the north-west is dependent on completion of a new $538 million ‘Northern Interceptor’ wastewater pipe to handle growth in this area. Interim solutions can meet the wastewater needs for the live zoned area of Red hills and the first stage of Whenuapai until the Northern Interceptor is completed in about 2026. Kumeu, Huapai and Riverhead have been put back to align with safety and capacity issues on State Highway 16, and completion of the Northern Interceptor.

  • Takanini and Puhinui

2012-2017 – Walters Rd, Takanini (300 houses), Puhinui (business)
2028-2032 – Puhinui (business)
2038-2042 – Takanini (5000 houses)

The future urban zone is subject to significant flooding hazards and geotechnical constraints due to peat soils. Stormwater costs are high and further work is required to understand the viability of development in this area in the medium to long-term. It is proposed to put back development from 2027-2031 to 2038-2042.

  • Hingaia/Opaheke-Drury/Drury West

2012-2017 – Hingaia (3070 houses), Drury South (1000 houses), Bremner Rd, Drury West (1350 houses), Bellfield Rd, Opaheke (300 houses)
2018-2022 – Drury West Stage 1 (4200 houses)
2028-2032 – Drury West Stage 2 (5700 houses), Opaheke Drury (7900 houses)

Proposed interim solutions provide wastewater capacity for initial development in Hingaia, Drury West special housing area(now live zoned), Drury West Stage 1 and Drury South. In the longer term, augmentation of the South and Southwestern interceptors is required to provide wastewater capacity for the full build-out of these areas, including Drury West Stage 2 and Opaheke-Drury. The later sequencing of Drury West Stage 2 allows for a new expressway between Drury, Paerata and Pukekohe, needed to alleviate capacity and safety issues on State Highway 22. Opaheke-Drury has been brought forward slightly as a result of developer interest, but a solution is needed to flooding constraints in combination with the completion of wastewater infrastructure before comprehensive development can occur.

  • Paerata/Pukekohe

2012-2017 – Wesley, Paerata (4550 houses), Belmont, Pukekohe (720 houses)
2018-2022- Paerata (1800 houses), Pukekohe (7200 houses)

No infrastructure or sequencing considerations given in council report.

Smaller rural and community settlements

North

  • Wellsford

Further geotech testing required due to instability in some areas. A new water source will be required to service the Future Urban Zone areas. These areas will also require an upgrade to the wastewater plan, which is likely to take until the early 2020s.

  • Algies Bay

Upgrade to the wastewater outfall pipe is necessary to service new connections outside the existing service area.

  • Albany Village

Full build out of the Future Urban area will require new water services capacity and road upgrading.

  • Hatfields Beach

Wastewater upgrades are necessary to service new developments and likely to take until the early 2020s. With limited water supply, large scale development will require new transmission lines from Albany, which is likely to take 10 years following commencement of design.

North-West

  • Helensville

Further geotech investigation needed to manage slope stability issues and ensure effective drainage to overland flow paths and streams. The wastewater plant has recently been upgraded and can accommodate about 6000 people. This is sufficient for existing urban zoned areas and part of the Future Urban zone area. The Helensville State 1 areas is the closest Future Urban area to the wastewater plant. Watercare will monitor growth and review additional upgrade options when population nears the plant’s capacity.

South

  • Maraetai

The wastewater treatment plant will be upgraded as required in order to maintain discharge compliance and to accommodate growth.

  • Oruarangi

The area has sufficient water and wastewater capacity. Structure planning will need to take cultural heritage and landscape values into account, consistent with the Mangere Gateway Project.

  • Puhinui

The remaining Future Urban zone is not anticipated to be development ready until 2030 due to transport constraints and market readiness.

  • Clarks Beach

A new wastewater outfall at Clarks Beach will be required to service new development, subject to a sub-regional wastewater discharge consent which has been applied for.

  • Glenbrook Beach

New development will depend on the new Clarks Beach wastewater outfall, and structure planning for the new area to be developed as a gateway to the village.

Costs

2018-2028 – $6.7b(North $2b, North-West $2.2b, South $2.5b)
2029-2038 – $9.7b(North $3.5b, North-West $2.8b, South $3.4b)
2039-2048 – $3.3b(North $1.3b, North-West $700m, South $1.3b)

Source:

  • NZ Herald
  • Photo:┬áTed Baghurst

Auckland to Whangarei motorway on the cards

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A motorway from Auckland to Whangarei has been flagged by Transport Minister Simon Bridges. Speaking at today’s sod turning to mark the start of the $709.5 million Puhoi to Warkworth motorway, Bridges said over time the motorway would extend to Whangarei, a distance of 162km.

Prime Minister John Key and Bridges turned the first sod during a tour of roading projects north of Auckland, including a new roundabout in the township of Waimaukau. Bridges said the Government had pledged to build a four-lane road of national significance from Puhoi to Wellsford and the entire corridor to Whangarei was very important.

“A lot of people talk about the Brynderwyns and the need for a very strong solution there. “You have got Northport up closer to Whangarei, which is again justification for doing a much more significant job all the way. “Whether that’s to road of national significance standard or something different to that I couldn’t say at the moment … but as Transport Minister I’m very attracted to progress more significant road improvements, not just through to Wellsford but up to Whangarei,” Bridges said.

He said realistically it was not five or six years away, but probably a decade of more away. New Zealand Transport Agency chairman Chris Moller said the agency was looking at the Whangarei to Auckland connection but a motorway could be 30 years away. The Puhoi to Warkworth motorway extends 18.5km over difficult terrain from the Johnstone Hills tunnels just south of Puhoi to just north of Warkworth.

sssCritics have nicknamed it the “holiday highway” to the intense annoyance of Northland leaders. The new motorway will have two lanes in each direction divided by a central median with a safety barrier. Both Bridges and Rodney MP Mark Mitchell stressed the safety benefits of the new motorway. Said Mitchell: “Safety is definitely a No 1 concern. Unfortunately the piece of road we have to use at the moment comes with hazards and we have too many serious injuries and fatal accidents on that piece of road.”

The project is the second public private partnership (PPP) for a state highway, after the Transmission Gully motorway in Wellington. Under the latest PPP, the Northern Express Group will finance, design, construct, manage and maintain the Puhoi to Warkworth motorway for the 25 years following a five-year build. The motorway is due for completion in 2021. Incentives built into the contract will ensure the motorway is one of the safest in New Zealand with lower grades and be more resilient to natural disasters and road closures.

Bridges said a decision had not been made on whether to toll the new Puhoi to Warkworth motorway. Route protection of the next stage of the motorway from Warkworth to Wellsford is underway. The NZ Transport Agency is planning to release an indicative route early next year. The Automobile Association is delighted that construction is officially underway on the Puhoi to Warkworth motorway extension. “Many people from outside Northland don’t understand what a vital step forward this is for us,” AA Northland District Chairman Steve Westgate said. “It’s not just about safer, quicker and more reliable journeys, it’s about the economic opportunities that come with it. This project will improve our connections with Auckland, New Zealand and the world.”

Source:

  • Bernard Orsman
  • NZ Herald

 

Western Motorway Upgrade – Auckland

 

Source: NZTA

Commercial Bay – Auckland

Source: P Precinct

Apartments for Auckland

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By 2017 more than half of all new homes built in Auckland will be part of apartment blocks or terraced homes.

According to architecture and research company RCG’s latest publication, Constructive Thinking, this shows Aucklanders may be warming up to the idea of attached housing.

“Based on building consent data and our own forecasts, 53 per cent of the new homes built in Auckland will be attached by 2017. This is a considerable shift from the average of the last 20 years, which has been closer to 35 per cent.”

The increase in attached homes fits with trends in comparable Australian cities, RCG said.

“Demand for medium density living is booming here. In Australia’s three largest
cities at least 60 per cent of new homes are attached.”

Rising house prices, an aging population, shrinking household sizes and record migration levels are citied as key drivers behind the trend.

RCG economist and associate director John Polkinghorne said attached housing is an attractive option for many people.

“Auckland’s population continues to grow rapidly, and for many people, a well
located and affordable apartment or terraced home is becoming a really attractive
option, compared to a standalone house on the city fringe,” Polkinghorne said.

RCG associate director of research John Polkinghorne.

In findings released this month, Barfoot & Thompson surveyed 500 Aucklanders aged 18 to 34 who were yet to own property.

Around 70 per cent of would-be homeowners are still aiming for a standalone Auckland house, with just 9 per cent willing to consider an apartment, it found.

Auckland CBD, Stonefields, Albany, the Western CBD and the Southern CBD are the most effected areas by increased density.

Source:

  • Aimee Shaw
  • NZ Herald
  • Photo: Getty Images

$200m hotel ready for 2018

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Prime Minister John Key says a million Chinese tourists will soon be visiting here annually.

Making his prediction at a ground-breaking ceremony for Auckland’s new $200 million Park Hyatt, Key told more than 100 dignitaries in a waterfront marquee how he expected massive growth.

Quipping how he expected to be at the new five-star hotel regularly because he is often at events in hotels, Key said China was New Zealand’s second biggest market for tourists after Australia.

About 371,000 Chinese tourists now visit New Zealand annually.

“The question is ‘how long will it take before there’s one million?” he asked of annual Chinese visitor arrivals. “I would have thought within about three to four years there will be one million tourists from China alone,” he said.

Tourism New Zealand says China is New Zealand’s second largest visitor market.

“Its growing middle-class has seen sustained growth in Chinese visitor arrivals to New Zealand over the last five years. Increased air capacity from the two direct carriers, China Southern Airlines and Air New Zealand – with new players Air China and China Eastern also establishing year-round services in 2015 – has helped this trend,” Tourism NZ says.

Key was with a businesswoman said to be China’s wealthiest to turn the first sod at the site of the new hotel.

Madam Chan Laiwa, founder of Chinese real estate business Fu Wah, visited the Halsey St site in the Wynyard Quarter/Viaduct Harbour area, opposite ASB North Wharf.
She accompanied Key into the marquee to the call of a kaikaranga.

Source:

  • Anne Gibson
  • NZ Herald

 

Billion dollar bonanza

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Artists impression of new build for Auckland CBD

New Zealand’s largest private property developer is planning projects worth more than $1 billion.

Culum Manson, a director of Parnell-headquartered Mansons TCLM, said the business was the busiest it had been in its 40 year history.

“We’ve got over $1 billion of work planned and not yet announced, including a $120 million asset and a $210 million asset, both in the CBD,” Manson said.

The $1 billion-plus of new work was the result of the need for tenants to upgrade their office space.

“We’re thinking about who might need upgrading in the next few years,” he said of the new projects.

The family firm’s biggest scheme is the $675 million 30-level office tower and 125-room hotel tower at 46 Albert St on the site where the Herald has been published for 152 years.

“The biggest project we have on is Albert St,” he said of the site spanning Mills Lane, Albert St, Wyndham St and Swanson St. Buildings there are now being progressively vacated by about 850 staff for NZME Central, Mansons’ 151 Victoria St premises.

No naming rights have been announced for that new five-star block but that is expected soon when the top floor tenancy lease is announced.

Law firm Meredith Connell has also leased space in the building.

Early last month, Prime Minister John Key officially opened NZME Central, acknowledging the rapidly changing nature of media and the importance of the shift into the new premises.

Manson said planning work for the new buildings on the Herald site was under way.

“We could start demolition of 46 Albert St [at the] end of the first quarter next year, although I’ve got to say it’s not a priority at the moment because we’re still focused on finishing off 151 [Victoria St West] and getting started with all these other jobs,” he said.

“Also, we’re still working with Auckland Transport and Auckland Council on finalising the resource consent for the old Herald site and that’s taken longer than we anticipated, mainly around transport implications of the City Rail Link and a whole lot of moving parts that need to be considered.

“It’s frustrating but we’re all living in the same city and we’re all got to deal with it.”

A Colliers International’s Auckland office vacancy survey showed strong demand and the lowest overall vacancy rate recorded since the studies started. Colliers said it was not just the CBD and fringes which displayed strong demand, but office vacancies had also dropped on the North Shore, Mt Wellington, Penrose and throughout east Auckland.

Source:

  • Anne Gibson
  • NZ Herald
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