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Speaker 1: Together due for Cellen two is the text number. Standard

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Speaker 1: text fees apply. And now to Auckland. Housing developers and

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Speaker 1: Auckland are upset. They're going to have to fork out

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Speaker 1: tens of thousands of extra dollars per dwelling under some

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Speaker 1: new rules. Suburbs like Redhills and Tamaki will have to

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Speaker 1: pay seventy two thousand dollars per new build, which is

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Speaker 1: about as three times as much as they were paying before. Now,

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Speaker 1: Troy Patchett is the head of strategy at property Developers

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Speaker 1: Subdivide Simplified, and he's with us. Now, Hey, Troy, hello,

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Speaker 1: is that too much?

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Speaker 2: Well, that's a roadblock. At the end of the day,

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Speaker 2: it will be the user that pays for then the property owner.

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Speaker 2: And that's unfortunately, because we're in a world of trying

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Speaker 2: to create more affordable housing than this is just a

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Speaker 2: real setback for that. So you could say a dollars

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Speaker 2: too much, but this is significantly a higher amount than

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Speaker 2: what we had anticipated.

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Speaker 1: What were you anticipating?

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Speaker 2: Well, interestingly enough, the Oakland Council did come out with

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Speaker 2: their first proposal, which was in some cases four to

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Speaker 2: five times the original amount, and due to the good

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Speaker 2: work of the SUNS group, which was headed by Kirsty

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Speaker 2: Merriman and Matthew Gilligan who put forward a case via

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Speaker 2: their KC that ultimately postponed that proposal and then forced

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Speaker 2: council to readdress it. So whilst we've got a lower

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Speaker 2: amount than what the original proposal was, it's still in

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Speaker 2: some cases two to three times so yeah, still quite

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Speaker 2: an astronomical amount. Pay well, it's effectively pays for the

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Speaker 2: infrastructure in the local area. And what I mean by

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Speaker 2: that is not just the roads, but the drainage and

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Speaker 2: things like that underground, but also the local libraries, the

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Speaker 2: parks and all those sorts of things. Now at the

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Speaker 2: moment that's based on like a ten year calculation. Auckland

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Speaker 2: councilor wanted to extend that out to a thirty year calculation.

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Speaker 2: But they've also got some other crazy methods going on

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Speaker 2: that have forced some of these fees which we didn't

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Speaker 2: think were their unreasonable. One that was part of our

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Speaker 2: case with the case to challenge it.

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Speaker 1: Yeah, so do you accept that developed do need to

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Speaker 1: contribute to some of the infrastructures Just to question about how.

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Speaker 2: Much most definitely yep, I mean a user pays right,

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Speaker 2: So the homeowner, which is either the landlord or the

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Speaker 2: home and own occupy, you know, get to the enjoyment

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Speaker 2: and the facilities in that local area. So most definitely

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Speaker 2: I think there should be some cost that that is

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Speaker 2: allocated for it. But the case that it needs to

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Speaker 2: be is that needs to be fair and reasonable. So

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Speaker 2: depending on what's in the local area and what's charged

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Speaker 2: need to match up.

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Speaker 1: Can you explain to me whideer is that some suburbs

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Speaker 1: are per dwelling. It's a hell of a lot more

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Speaker 1: than others.

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Speaker 2: Yeah, So what they're saying is that Auckland have pinpointed

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Speaker 2: some suburbs is higher intensification. Therefore it's going to have

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Speaker 2: a higher wear and tear on the local infrastructure. So

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Speaker 2: they've done some calculations around how many more houses they

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Speaker 2: think are going to be built in the area and

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Speaker 2: therefore the amount of people that are going to be there.

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Speaker 2: So that's why they've said lot this, some of these

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Speaker 2: facilities need to be upgraded sooner rather than later, and

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Speaker 2: there's going to be more where and tear in them.

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Speaker 2: So these areas are going to have higher rates than others,

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Speaker 2: which unfortunately is going to create what they're calling a

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Speaker 2: bit of a donut effect, so that developers are going

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Speaker 2: to I guess pull away from those areas and start

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Speaker 2: to focus on more of the areas where the development.

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Speaker 1: Contribution have wees we little.

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Speaker 2: Yeah, most definitely. And you know, as soon as the

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Speaker 2: table came out, everybody's just looking for the cheaper one, right,

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Speaker 2: so they're going, okay, so that might be the next

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Speaker 2: green light. But yeah, it's definitely going to be some

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Speaker 2: red zones, which I mean, ultimately, all of these developments

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Speaker 2: need funding, so there needs to be a minimum margin

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Speaker 2: that the developments need to achieve before they even get

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Speaker 2: out of the ground. The original development contributions killed that margin.

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Speaker 2: There was no margin left in it, and now the

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Speaker 2: new development contributions have been released are still going to

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Speaker 2: kill quite a few projects, but some may get the

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Speaker 2: green light, so it's still going to be an impact.

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Speaker 2: There's still going to be a slow down.

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Speaker 1: Yeah all right, Hey Troy, thanks for talking as through appreciated.

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Speaker 1: That's Troy Patchett, head of strategy at Subdivide Simplified.

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