Case Study

South Auckland
Plan Change 6 (PC6).

This case study assesses the value increase in Auckland for land as it progresses through the Rural to Live Zone spectrum. The steps in the land zoning spectrum include Rural Zone, Lifestyle Zone, Proposed Future Urban Zone, (FUZ) Future Urban Zone, Proposed Live Zone and Live Zone.

• PC6 involved the rezoning of approximately 83.05ha of FUZ zone land to residential zones.

• PC6 (outlined in Figure 1) is located in the suburb of Drury in the southern part of the Auckland region.

• Drury is located 30-40 minutes south of the Auckland CBD, and 15-20 minutes from Manukau and Pukekohe.

Note: Nothing in this case study shall be taken or interpretated as any guarantee regarding the outcome, or likely outcome, of the projects contemplated in this document. It is an example only for illustrative purposes.

Land Value
Appreciation.

• All properties in the plan change area were zoned rural until 2015.

• FUZ zone was proposed in 2015 and it became operative in 2016.

• PC6 was publicly notified in October 2017 and became operative in part in December 2018 and fully operative in February 2020.

• Properties sold in the PC6 area experienced a significant increase in average sale price per hectare from one year prior to the proposal of FUZ zone to the year of the plan change becoming operative in part.

• Properties in the PC6 area sold between the proposed and partially operative steps experienced an increase in average sale price per hectare from $1.9m in 2017 to $2.6m in 2020.

The analysis finds there is a significant increase in value as land progresses through the land zoning spectrum as follows:

• 165%

  When Rural zone land is changed to Lifestyle there is a resultant increase in value of $0.5m/ha or 165%.

• 225%

  When Rural zone land is changed to Proposed FUZ there is a resultant increase in value of $0.7m/ha or 225%.

• 400%

  When Rural zone land is changed to FUZ there is a resultant increase in value of $1.1m/ha or 400%.

• 690%

  When Rural zone land is changed to Proposed Live Zone there is a resultant increase in value of $1.9m/ha or 690%.

• 1035%

  When Rural zone land is changed to Live Zone there is a resultant increase in value of $2.6m/ha or 1035%.