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9.1 Impact on dwelling type: growth has occurred at the fringe of cities and in inner city multi-unit dwellings
New Zealanders require access to a diverse range of housing choices. Future population growth will increase the demand for housing, while the projected long-term decline in the size of households means that the housing needs of many households are changing. Increased amenities, provided by close proximity to services, or well serviced via public transport, are highly valued by some groups. Focus group research by DTZ New Zealand (2005) pointed to strong aspirations for living in larger dwellings on large sections, as well as a strong aspiration towards home ownership.
Future needs are likely to include a mix of housing styles in areas with access to work, services and community facilities. To minimise environmental impacts housing needs to be serviced by public transport.
Cities are drivers of economic growth, innovation, creativity and international competitiveness. Cities, especially Auckland, have an important role in boosting economic performance and sustainability objectives. Most of New Zealand’s major cities, including Auckland, Wellington, Christchurch and Tauranga, are developing, implementing or reviewing their regional growth and development strategies. These growth strategies are often based on urban intensification around growth centres and along transport corridors, urban containment through the use of growth boundaries around cities, increased residential densities, and mixed land use.
The Auckland Regional Growth Strategy, launched in 1999, set out a Growth Concept, which envisaged a greater emphasis on urban growth around existing town centres and near major public transport corridors, with less reliance on expansion on the urban fringes. The plan was for approximately 70% of new growth to be accommodated in the existing metropolitan areas by developing more intensive, mixed-use town centres, with the remaining 30% of growth occurring through development in greenfield areas and suburban in-filling. To date, promotion of intensification has focussed mainly on regulatory tools (such as district plan zoning). Such approaches have met with a mixed response from the market place.
Intensive developments in Auckland have increased and now represent over 40% of new building consents, however, not all of these developments are occurring in identified growth centres. The remaining 60% of consents are occurring on the urban fringes or in or areas within the city not targeted for growth and not well serviced by public transport. This would appear to be due to:
Intensification should moderate house prices, all else being equal, because it uses less land per dwelling by greater use of terrace and multi-level apartment dwellings. In areas of Auckland with higher residential density, the land value per resident is lower even though the land value per hectare is higher. Apartments and flats are generally priced at 60%–80% of stand alone dwellings, which assists with affordability for some markets and in some areas.
Box 6: Intensification versus expansion
The arguments in favour of urban intensification focus on encouraging:
Arguments in favour of urban expansion focus on:
Successful intensive development requires significant capital investment in new infrastructure and public transportation in particular. Furthermore, existing urban land values mean that the resulting developments are unlikely to be low cost, although they could include more affordable components. In developments where significant uplift in land values occurs as a result of re-zoning, this could be partly captured through affordable housing contributions as allowed for by the proposed Affordable Housing: Enabling Territorial Authorities Bill. Consideration should be given to coordinating re-zoning with major investment in public transport systems to increase the amenity and, therefore, demand in new areas. These types of investments may be outside the capacity of territorial authorities to make.
Brownfield sites can offer opportunities for more intensive development, although there may be costs associated with cleaning up contaminated sites. The redevelopment of under-utilised or abandoned sites can contribute to the revitalisation of neighbourhoods and urban districts.
International research shows that many countries are grappling with how best to achieve urban development, and that a number of similar approaches are being used in Australia, the United Kingdom and the United States from which New Zealand could learn.
Cities such as Melbourne, Sydney and Perth are all using urban development agencies. These agencies have been able to demonstrate commercially viable and sustainable development, high-quality design, and urban regeneration. Some have also facilitated the provision of affordable housing, community facilities and services, and kick-started redevelopment in strategic locations where there was little market interest.
Functions of urban development agencies can include:
Australian urban development examples include the following:
VicUrban Redevelopment Authority – Revitalising Central Dandenong Project
The Victorian government has designated four regional centres as ‘Transit Cities’ within the Greater Melbourne area, including Dandenong which is the focus of greatest investment due to its strategic location, diverse community and opportunity for economic and business transformation. The Revitalising Central Dandenong initiative is delivering a number of long term projects to provide:
The government’s redevelopment agency, VicUrban, is responsible for the project and has partnered with the local Council to improve development approval processes and encourage private sector investment. A major early initiative has been to facilitate the amalgamation of strategic sites on the edge of the city centre and the relocation of a bus depot to a more suitable location, enabling the development of 1,000 new homes.
VicUrban is working in partnership with the City of Greater Dandenong to deliver the project over a 15 to 20 year period. The Dandenong project will seek to attract more than $1 billion in private sector investment. VicUrban is also involved in partnering a number of affordable housing projects to provide equity share home ownership, key worker housing and additional social housing.
Perth – East Perth Redevelopment Authority
The West Australian government established the East Perth Redevelopment Authority in 1991 to plan, manage and redevelop government owned land in Perth. The authority has access to large areas of surplus or underdeveloped government land with the power to acquire additional contiguous parcels.
The first project of the East Perth Redevelopment Authority was to undertake, promote and coordinate the redevelopment of Claisebrook Cove which was a former gasworks site. The project commenced in 1992. The Claisebrook Cove project area covers 146 hectares of land and is the state’s largest inner-city urban renewal project. The project area was formerly industrial land, including the former East Perth Gasworks, scrap yards, contaminated industrial sites, empty warehouses and railway yards. Claisebrook Cove was planned to accommodate approximately 2,500 new residents with the creation of 1,450 new homes and apartments.
The East Perth Redevelopment Authority’s expenditure on the project is in excess of $127 million. A grant of $32 million was received from the Federal Government’s Building Better Cities funding program. Private expenditure on new residential and other buildings in the project area is in excess of $680 million.
Sydney – Redfern - Waterloo Authority
The New South Wales government established the Redfern-Waterloo Authority in January 2005. The Authority is responsible for revitalising the Redfern-Waterloo area of south-central Sydney through urban renewal, improved social services and job creation.
In August 2006, the first stage of a 15 to 20 year multi-agency development plan was released. Key features of the plan include:
The Redfern-Waterloo Authority has attracted almost $300 million in new investment for the area, including direct investment by the Authority of more than $76 million.
The following factors would assist in encouraging successful urban intensification and the development of brownfield sites: