There has been huge growth in the Waikato and Bay of Plenty over the last few years. Statistics New Zealand show projected population change between 2013 and 2043 for Waikato and Bay of Plenty at 32.4% and 26.2% respectively, putting them in the top four regions across the country.
This growth has led to significant infrastructure spend on roads and services as they have expanded to meet demand. Hamilton and Tauranga form two points of the “Golden Triangle” with demand for housing outstripping supply as pressure from population growth places a significant strain on infrastructure and the number of developer-ready sections available on the market.
The Government has recognised the need to support high growth councils and last year agreed to establish a Housing Infrastructure Fund (HIF). The intention of the HIF is to provide councils facing infrastructure - the water supply, storm water, waste water and roading - deficits with an opportunity to bid for a share of a $1 billion fund with the intention that it would provide the catalyst for the creation of up to 50,000 new dwellings.
Access to the funds would take the form of an interest free loan payable over a ten year period, which has created plenty of political debate for councils already under significant financial pressure and reluctant to pass on costs through rate hikes.
We are aware of at least three councils within the Golden Triangle participating in the process with final proposals due to be submitted to the Ministry of Business, Innovation and Employment by the end of the week (31 March 2017) and the final evaluation is to be completed from April-June 2017.
The Government has an independent panel who will be looking for “ambitious projects” that will impact housing supply in a positive way over the next five years.
The Property Group supports Councils throughout the country, along with public and private organisations, to make better property decisions which includes infrastructure and corporate real estate needs. With our in-house planning, legal and GIS teams to complement our property experts we are well positioned to assist any business with their property issue.