Together due for Cellen two is the text number. Standard text fees apply. And now to Auckland. Housing developers and Auckland are upset. They're going to have to fork out tens of thousands of extra dollars per dwelling under some new rules. Suburbs like Redhills and Tamaki will have to pay seventy two thousand dollars per new build, which is about as three times as much as they were paying before. Now, Troy Patchett is the head of strategy at property Developers Subdivide Simplified, and he's with us. Now, Hey, Troy, hello, is that too much?

Together due for Cellen two is the text number. Standard text fees apply. And now to Auckland. Housing developers and Auckland are upset. They're going to have to fork out tens of thousands of extra dollars per dwelling under some new rules. Suburbs like Redhills and Tamaki will have to pay seventy two thousand dollars per new build, which is about as three times as much as they were paying before. Now, Troy Patchett is the head of strategy at property Developers Subdivide Simplified, and he's with us. Now, Hey, Troy, hello, is that too much?

Well, that's a roadblock. At the end of the day, it will be the user that pays for then the property owner. And that's unfortunately, because we're in a world of trying to create more affordable housing than this is just a real setback for that. So you could say a dollars too much, but this is significantly a higher amount than what we had anticipated.

Well, that's a roadblock. At the end of the day, it will be the user that pays for then the property owner. And that's unfortunately, because we're in a world of trying to create more affordable housing than this is just a real setback for that. So you could say a dollars too much, but this is significantly a higher amount than what we had anticipated.

What were you anticipating?

What were you anticipating?

Well, interestingly enough, the Oakland Council did come out with their first proposal, which was in some cases four to five times the original amount, and due to the good work of the SUNS group, which was headed by Kirsty Merriman and Matthew Gilligan who put forward a case via their KC that ultimately postponed that proposal and then forced council to readdress it. So whilst we've got a lower amount than what the original proposal was, it's still in some cases two to three times so yeah, still quite an astronomical amount. Pay well, it's effectively pays for the infrastructure in the local area. And what I mean by that is not just the roads, but the drainage and things like that underground, but also the local libraries, the parks and all those sorts of things. Now at the moment that's based on like a ten year calculation. Auckland councilor wanted to extend that out to a thirty year calculation. But they've also got some other crazy methods going on that have forced some of these fees which we didn't think were their unreasonable. One that was part of our case with the case to challenge it.

Well, interestingly enough, the Oakland Council did come out with their first proposal, which was in some cases four to five times the original amount, and due to the good work of the SUNS group, which was headed by Kirsty Merriman and Matthew Gilligan who put forward a case via their KC that ultimately postponed that proposal and then forced council to readdress it. So whilst we've got a lower amount than what the original proposal was, it's still in some cases two to three times so yeah, still quite an astronomical amount. Pay well, it's effectively pays for the infrastructure in the local area. And what I mean by that is not just the roads, but the drainage and things like that underground, but also the local libraries, the parks and all those sorts of things. Now at the moment that's based on like a ten year calculation. Auckland councilor wanted to extend that out to a thirty year calculation. But they've also got some other crazy methods going on that have forced some of these fees which we didn't think were their unreasonable. One that was part of our case with the case to challenge it.

Yeah, so do you accept that developed do need to contribute to some of the infrastructures Just to question about how.

Yeah, so do you accept that developed do need to contribute to some of the infrastructures Just to question about how.

Much most definitely yep, I mean a user pays right, So the homeowner, which is either the landlord or the home and own occupy, you know, get to the enjoyment and the facilities in that local area. So most definitely I think there should be some cost that that is allocated for it. But the case that it needs to be is that needs to be fair and reasonable. So depending on what's in the local area and what's charged need to match up.

Much most definitely yep, I mean a user pays right, So the homeowner, which is either the landlord or the home and own occupy, you know, get to the enjoyment and the facilities in that local area. So most definitely I think there should be some cost that that is allocated for it. But the case that it needs to be is that needs to be fair and reasonable. So depending on what's in the local area and what's charged need to match up.

Can you explain to me whideer is that some suburbs are per dwelling. It's a hell of a lot more than others.

Can you explain to me whideer is that some suburbs are per dwelling. It's a hell of a lot more than others.

Yeah, So what they're saying is that Auckland have pinpointed some suburbs is higher intensification. Therefore it's going to have a higher wear and tear on the local infrastructure. So they've done some calculations around how many more houses they think are going to be built in the area and therefore the amount of people that are going to be there. So that's why they've said lot this, some of these facilities need to be upgraded sooner rather than later, and there's going to be more where and tear in them. So these areas are going to have higher rates than others, which unfortunately is going to create what they're calling a bit of a donut effect, so that developers are going to I guess pull away from those areas and start to focus on more of the areas where the development.

Yeah, So what they're saying is that Auckland have pinpointed some suburbs is higher intensification. Therefore it's going to have a higher wear and tear on the local infrastructure. So they've done some calculations around how many more houses they think are going to be built in the area and therefore the amount of people that are going to be there. So that's why they've said lot this, some of these facilities need to be upgraded sooner rather than later, and there's going to be more where and tear in them. So these areas are going to have higher rates than others, which unfortunately is going to create what they're calling a bit of a donut effect, so that developers are going to I guess pull away from those areas and start to focus on more of the areas where the development.

Contribution have wees we little.

Contribution have wees we little.

Yeah, most definitely. And you know, as soon as the table came out, everybody's just looking for the cheaper one, right, so they're going, okay, so that might be the next green light. But yeah, it's definitely going to be some red zones, which I mean, ultimately, all of these developments need funding, so there needs to be a minimum margin that the developments need to achieve before they even get out of the ground. The original development contributions killed that margin. There was no margin left in it, and now the new development contributions have been released are still going to kill quite a few projects, but some may get the green light, so it's still going to be an impact. There's still going to be a slow down.

Yeah, most definitely. And you know, as soon as the table came out, everybody's just looking for the cheaper one, right, so they're going, okay, so that might be the next green light. But yeah, it's definitely going to be some red zones, which I mean, ultimately, all of these developments need funding, so there needs to be a minimum margin that the developments need to achieve before they even get out of the ground. The original development contributions killed that margin. There was no margin left in it, and now the new development contributions have been released are still going to kill quite a few projects, but some may get the green light, so it's still going to be an impact. There's still going to be a slow down.

Yeah all right, Hey Troy, thanks for talking as through appreciated. That's Troy Patchett, head of strategy at Subdivide Simplified.

Yeah all right, Hey Troy, thanks for talking as through appreciated. That's Troy Patchett, head of strategy at Subdivide Simplified.

For more from Hither Duplessy Allen Drive, listen live to News Talk set B from four pm weekdays, or follow the podcast on iHeartRadio,

For more from Hither Duplessy Allen Drive, listen live to News Talk set B from four pm weekdays, or follow the podcast on iHeartRadio,