Will Auckland’s new unitary plan affect the value of your property? It’s an interesting question and one that I have been debating in my own mind over the past few months. The unitary plan will enable many more houses to be built in areas that have not seen intensification for some time. Naturally, you would think that if a piece of land can now take two or more properties rather than just one, it would become more valuable.
Certainly, over the past few years, I have seen sites with development potential for multiple houses achieve amazing prices. But will this continue? The age old scenario of supply and demand may come into play, we have the demand for more houses and prior to the unitary plan, the availability of land close to the central city has been very limited. But now many sites that were previously unable to be sub-divided will become multi-unit sites. Those unique properties that have achieved premium prices in the past due to their development potential, will no longer be unique.
On the other side of this debate is that of the value of single house sites. In Remuera, for example, there are only a few prestigious streets or pockets of streets that will be deemed to be single house sites. Many high-end purchasers desire large sites and the luxury of knowing that multiple houses will not be built on their boundaries. So will these sites become even more sort after and therefore more expensive? It will be interesting to see how it plays out in the coming years.