31 May ... Really?
Cannot believe we are here at the end of May in what has been a lightning quick year so far. I hope it’s been a productive and enjoyable one for you so far. :-)
Auckland Council votes today whether the RFT will come in to play. My money is that yes it will. Without any other alternative, many infrastructure projects will stall. I’m just a dumb developer and no economist, so I want someone to explain to me why infrastructure bonds can’t be explored further. They have worked and continue to work successfully in other countries. Rant over. And don't worry, I won't mention Kiwibuild.
The CRL line is making progress, with the tunnelling and enabling works in full gear, and even some of the initial tunnelling work beginning to be closed over at the Commercial Bay development. In Mt Eden demolition and clearing works have started in earnest as you might have seen. And the Fletchers debacle has definitely put pressure on the delivery programme overall. Having said all that, centres where these stations are/will be upgraded stand to gain significantly in the next 10 years. I know I keep bleating on about that, but it's true.
The planning appeals I mentioned previously (alternative height and permitted baseline) having been resolved with little (if any) fanfare at all, I hope will help shape your thinking about how to maximise your opportunity. Notably the ability for a greater permitted baseline makes the argument of greater density an easier one to make.
I’ve been told that Council are resisting with all their might the alternative HRB standard where possible and making this difficult to get through, so don’t expect this to be an easy one to get across the line if you are heavily reliant on it. Be prepared for a fight! Which in real terms equals delays which equals time which equals money.
Building consents issued are up, tick, and immigration has trended back, both factors that will help ease price pressure. But for the long term, the demand supply imbalance is not something I believe will be solved for at least the next decade. And probably beyond if you look at other cities around the world, given the phenomenon of urbanisation. You think we have supply challenges? Simply take a look across the ditch to Melbourne and Sydney.
It’s been a fantastic albeit busy few weeks here at base, we have finally obtained consent for an apartment development in Kohimarama which was a frustrating process to say the least. And a big thanks go to my trusted consultant team for getting this across the line!
I’m also really excited about having secured another site that I’m confident will deliver a (dare I say it) ‘sexy’ exclusive apartment development for the baby boomer market. The acquisition process was long and had challenges. However, my due diligence uncovered a major issue prior to going unconditional which we were able to reflect in the price. Yay!
I've identified significant points of difference from other developments that are coming to market in the same space, so am pleased to be offering an alternative that will deliver on amenity and qualities these buyers are wanting to see actually delivered.
I’m genuinely excited about rolling out this product at scale for this growing, sophisticated and discerning market.
And like a steam roller with its pedal to the metal, it’s still a slow-moving beast! Nevertheless, watch this space!
If you need help with something, please don’t hesitate to drop me a line. As you know, I love coffee and to talk about anything property!
Stay warm and wishing you a great Queens Holiday break wherever you might be.