On 24th February 2016, after an extraordinary 7-hour meeting the Auckland Council voted to reject the Unitary Plan’s housing density proposals known as the “out of scope” changes. The vote means the council will withdraw “out of scope” changes i.e. zoning changes which would have allowed terraced or multi-tier housing in more suburbs.
A Government-appointed independent hearings panel will now determine what the zoning will look like and give recommendations to the Council in July.
According to Newshub, Economist Shamubeel Eaqub said that the decision showed the council was incapable of making a vital change. He said that it meant that wealthy landowners in leafy suburbs were given preference at the cost of a younger generation for whom buying their first home in those suburbs might remain a dream.
The good news is that in another development, 14 new Special Housing Areas (SHA) were announced on 11th February. They will provide more than 4500 new homes across Auckland. The total number of SHAs in Auckland is now 120, with more than 52,000 new homes. Launched in October 2013, SHAs allow qualifying developments in these areas can be streamlined and fast-tracked.
High demand for housing also means that builders are already trying to develop more multi-tiered housing. They are developing new apartment projects with a starting price of around $400,000 in suburbs such as Avondale and New Lynn.
First home buyers may want to be prepared as these new homes come into the market and save for their deposit. While those looking for investment properties may want to tread carefully and build up equity for the right opportunity.
Over the last 3-4 months, we have seen that First Home Buyers have come back to the market to buy their property. Out of every 10 queries, we find that approximately 4 are from first home buyers.
If you are looking to buy your first home or planning for one, call us for a free consultation to know how much mortgage you can get.
Get your free consultation today! Call Global Financial Services on 09 255 5500.