Aucklanders are encouraged to provide feedback on a new development contributions policy that influences how the cost of Auckland’s growth is shared.
The new development contributions policy proposes fees the council will charge developers to help fund the cost of growth in Tāmaki Makaurau. The consultation closes on Friday, November 15.
Auckland Council manager of financial policy, Andrew Duncan, said the policy helps fund new assets such as roads, pipes and public amenities that enable homes or business properties to be developed.
“We encourage all Aucklanders to get involved with this consultation – it will influence the infrastructure for our new developments in future, and how well they support growth in the region,” said Mr Duncan.
“That’s roads, footpaths, stormwater and drainage systems, community facilities, libraries and parks that go on to form the basis of our communities, their day-to-day quality of living and resilience to weather events.”
Auckland’s population is expected to grow by approximately 600,000 people over the next 30 years.
Development contributions see the costs of infrastructure fairly shared between developers, ratepayers, and the government.
Over the 10 years to 2034, the council is investing around $39.3 billion in its capital investment programme, including $10.3 billion of projects with a growth component.
Mr Duncan says the proposed policy changes to reflect this investment will increase the average development contribution fee from $21,000 to $30,000 per household unit equivalent.
From 2034 to 2054, $10.9 billion will also be invested in the Investment Priority Areas at Drury, the inner northwest (Redhills, Westgate, and Whenuapai), and the Auckland Housing Programme areas at Tāmaki, Mt Roskill, and Māngere. These areas are joint priority areas with the government and are key locations for the council to focus its limited resources.
“The council has looked at what is required across those areas and, to ensure our priority developments are adequately established, we have proposed price changes.”
The council has reviewed Drury’s stormwater infrastructure needs and the level of investment required over the next 30 years. As a result, the average development contribution in Drury will rise from $70,000 to $83,000.
The council’s current assessment of the long-term infrastructure requirements for the inner northwest and Tāmaki, Māngere and Mt Roskill proposes an additional $8.9 billion of investment over 30 years.
This brings proposed development contributions costs to $98,000 for the inner northwest (up from $25,000); $29,000 in Māngere (was $18,000); $52,000 in Mt Roskill (up from $20,000) and $119,000 in Tāmaki (was $31,000).
The proposed higher development contributions reflect the value of the infrastructure required to support development.
“These fees flow onto the quality of services and infrastructure in these new developments. The council’s aim is to ensure these communities have what they need for decades to come, for those families and owners who live in them,” says Mr Duncan.
The council’s economic analysis shows that higher development contributions do not generally lead to higher house prices. The price of housing is determined by supply and demand for houses, not the cost of land and building.
The consultation closes on Friday 15 November 2024 and all Aucklanders are encouraged to have their say, on what their future neighbourhoods need.
Visit council’s Have Your Say webpage to provide feedback.
Consideration of feedback on the draft Development Contributions Policy 2025 is now underway. To ensure officers are able to review and potentially address matters raised in the submissions, Auckland Council has extended the decision-making timeframe. This was to occur in February 2025 but will now take place in April 2025. This will ensure quality advice can be provided to support decision-making by the council’s Governing Body.
