Comment of the Weekend on the SHA’s
In the Land Banking Special Housing Areas? #AKLPols post regular commenter Dale left the following comment below as food for thought on the Special Housing Areas. Now reading I am taking it refers to the Greenfield Special Housing areas rather than the Brownfield ones announced on Thursday last week. However, if Dale is referring to the Brownfield I’ll know soon enough.
This from Dale as Comment of the Weekend and thoughts on why the Greenfield Special Housing Areas will not work:
- The land prior to the creation of the SHA’s was bought at land banked prices in anticipation of re zoning, or as happened the creation of SHA’s. Therefore going forward, it does not matter who owns the land, the input price has already been determined at a land banked price that will make it nigh on impossible for housing to be truly affordable.
- Also irrespective of which land is included in the SHA’s, because infrastructure is provided by council, then there is a specific order of development from those properties that are closest to the last connection out. Therefore, if you are the developer at the end of the line, council will not allow you to develop if it is out-of-order with their grand plan.
- Land bankers are not necessary developers, so it is only natural they will on sell to an end developer.
- What the SHA conditions are trying to do is make land be developed which has a high input cost and then make a large number of sections come to the market in a short time frame. Many developers see this as too risky.
- Lastly, some of the land within the SHA’s is owned by owners who could not care less about developing now ie farmers, or is owned by long-term land bankers ie the land has no debt, and they are happy enough to see the land developed around them, knowing that its value is increasing anyway and will wait on the inevitable future rezoning.The only reason the SHA’s came into existence was to get around the limitations of the LGA and RMA. But as much land that the SHA’s are supposedly releasing, it is still less than the previous MUL or RUB (Metropolitan Urban Limits, Rural Urban Boundary) and combined with the reason in #2 above means no more land outside what had already been identified in years past by land bankers had been released.SHA’s were never going to work, and never will.
Thank you Dale for the thought-provoking comment.
As I was discussing with a fellow blogger yesterday the Manukau SHA (New Special Housing Areas Announced Including One in Manukau #AKLPols) should have been always the first Special Housing Area off the rank with other largish Brownfield SHA’s to follow-up afterwards. Your Greenfield SHA’s should have been last off the rank given the lack of infrastructure to service them, something which Minister of Housing Nick Smith admitted last week.