1 00:00:00,160 --> 00:00:02,920 Speaker 1: Afternoon, Chris Bishop has revealed his plan to flood the 2 00:00:02,920 --> 00:00:06,040 Speaker 1: market with houses. The new rules he's outlying today would 3 00:00:06,040 --> 00:00:09,840 Speaker 1: abolish urban rural boundaries around cities, demand that council's free 4 00:00:09,920 --> 00:00:14,320 Speaker 1: up thirty years' worth of development land demand intensification, especially 5 00:00:14,360 --> 00:00:17,840 Speaker 1: along transport corridors, and remove restrictions on apartment sizes and 6 00:00:17,840 --> 00:00:20,119 Speaker 1: balcony sizes. That would mean the market would make the 7 00:00:20,160 --> 00:00:23,120 Speaker 1: rules and not the council. David Whitburn is a professional 8 00:00:23,160 --> 00:00:24,800 Speaker 1: property developer and investor in with us. 9 00:00:24,840 --> 00:00:27,680 Speaker 2: Now, Hey David, hey, yeah, how are you very well? 10 00:00:27,720 --> 00:00:29,560 Speaker 1: Thank you? Do you reckon? This is going to see 11 00:00:29,560 --> 00:00:31,520 Speaker 1: more houses built and prices kept down. 12 00:00:32,960 --> 00:00:36,040 Speaker 2: It will, but unfortunately it's not the Holy Girl that 13 00:00:36,360 --> 00:00:38,199 Speaker 2: many are looking for. This will be a little bit 14 00:00:38,200 --> 00:00:40,559 Speaker 2: of a trickle only because we need to couple with 15 00:00:40,720 --> 00:00:45,559 Speaker 2: infrastructure funding considering urban sprawl when getting rid of the 16 00:00:46,000 --> 00:00:50,479 Speaker 2: metropolitan urban limits to Auckland and christ Church have already 17 00:00:50,560 --> 00:00:54,560 Speaker 2: factored in thirty years of supply in their plans anyway, 18 00:00:54,760 --> 00:00:58,640 Speaker 2: so that really only adding in the Hamilton, Toldong and 19 00:00:58,880 --> 00:01:01,640 Speaker 2: Wellington councils is the tier one councils for this, and 20 00:01:01,760 --> 00:01:05,840 Speaker 2: until we get the infrastructure funding sort of out. We're 21 00:01:05,840 --> 00:01:07,959 Speaker 2: not going to be able to get too much of 22 00:01:08,000 --> 00:01:10,920 Speaker 2: a dent in this, unfortunately, because it is very expensive 23 00:01:11,000 --> 00:01:14,080 Speaker 2: to put in the wastewater networks, the roading, the connections 24 00:01:14,120 --> 00:01:17,680 Speaker 2: to electricity, reticulation and so forth. To get a full 25 00:01:17,720 --> 00:01:18,480 Speaker 2: benefit from that. 26 00:01:19,080 --> 00:01:21,120 Speaker 1: You don't think the developers will pay for it willingly. 27 00:01:22,400 --> 00:01:25,160 Speaker 2: Developers won't pay for willing because we've got to make 28 00:01:25,200 --> 00:01:27,720 Speaker 2: a profit. That actually be more useful if we could 29 00:01:28,160 --> 00:01:31,600 Speaker 2: consider addressing the high interest rates that are hurting us 30 00:01:31,840 --> 00:01:34,360 Speaker 2: so bad at the moment. They're just too high, but 31 00:01:34,959 --> 00:01:38,040 Speaker 2: the infrastructure costs will help it. Just where's the funding 32 00:01:38,120 --> 00:01:40,520 Speaker 2: the platform from them. There have been some successful models, 33 00:01:40,520 --> 00:01:42,080 Speaker 2: the likes of what Fuld and Hopan have done in 34 00:01:42,120 --> 00:01:46,440 Speaker 2: Mildale has been great with a targeted contribution to the rates. 35 00:01:46,560 --> 00:01:49,360 Speaker 2: I think it's over thirty years to alleviate some of 36 00:01:49,400 --> 00:01:52,680 Speaker 2: the pressure, but it's very expensive doing it. We're seeing 37 00:01:52,920 --> 00:01:57,280 Speaker 2: development contributions upwards of ninety thousand dollars in Drury that 38 00:01:57,400 --> 00:02:00,800 Speaker 2: just gets taged to the cost of houses. So as 39 00:02:00,800 --> 00:02:03,320 Speaker 2: a result, we see places like Kumiu and Herpi in 40 00:02:03,400 --> 00:02:08,360 Speaker 2: northwest of Auckland, in Karaka and Pocono, we're seeing in 41 00:02:08,400 --> 00:02:11,440 Speaker 2: addition to some quite empty commute times, we're also seeing 42 00:02:11,440 --> 00:02:13,679 Speaker 2: that these areas using the old speak the sort of 43 00:02:13,760 --> 00:02:17,360 Speaker 2: disl nine ten nicer, more costly areas. So it doesn't 44 00:02:17,400 --> 00:02:21,480 Speaker 2: really help the housing affordability and only make a minor 45 00:02:21,600 --> 00:02:24,639 Speaker 2: dent and things. It's the right principle in all and 46 00:02:24,760 --> 00:02:28,399 Speaker 2: the better and lower housing, but unfortunately, unless it's dovetailed 47 00:02:28,440 --> 00:02:32,919 Speaker 2: around infrastructs lying and the provision of more bulk infrastructure 48 00:02:32,919 --> 00:02:35,960 Speaker 2: ideally funded by government who can borrow a couple of 49 00:02:36,120 --> 00:02:39,040 Speaker 2: least two hundred basis points lower than we developers can, 50 00:02:39,639 --> 00:02:41,560 Speaker 2: it's going to still be a real challenge. 51 00:02:41,960 --> 00:02:44,519 Speaker 1: How do you feel about the possibility of shoe box apartments? 52 00:02:45,440 --> 00:02:48,640 Speaker 2: Not good? We foiled a lot in the in the dieting. 53 00:02:48,760 --> 00:02:53,800 Speaker 2: Noticed a bit of work with some lawyers today and 54 00:02:53,800 --> 00:02:58,079 Speaker 2: an expert witness brief on one that such infamous project there. 55 00:02:58,520 --> 00:03:01,440 Speaker 2: It's something we've got to be bit conscious of. Unfortunately, 56 00:03:01,840 --> 00:03:04,160 Speaker 2: we've got to take some of our most vulnerable people 57 00:03:04,160 --> 00:03:06,760 Speaker 2: along with us on the journey, and some people don't 58 00:03:06,800 --> 00:03:10,400 Speaker 2: have that choice. So potentially, yet, if we were developed 59 00:03:10,520 --> 00:03:14,080 Speaker 2: that peraps weren't quite so conscious there, I may be 60 00:03:14,120 --> 00:03:17,480 Speaker 2: able to build nine square meter units and peraps have 61 00:03:17,480 --> 00:03:18,320 Speaker 2: a shared bathroom. 62 00:03:18,400 --> 00:03:19,320 Speaker 1: Would anybody live them? 63 00:03:19,360 --> 00:03:25,240 Speaker 2: Really? Unfortunately they haven't. In student halls of residents have 64 00:03:25,480 --> 00:03:28,840 Speaker 2: examples of that. Some workers accommodation do it in cities 65 00:03:28,919 --> 00:03:33,239 Speaker 2: like Hong Kong and numerous European cities. I've seen ones 66 00:03:34,040 --> 00:03:39,040 Speaker 2: as small as nine square meters. Unfortunately, so some vulnerable people. Unfortunately, 67 00:03:39,720 --> 00:03:41,360 Speaker 2: do you have to live in that? Yes, it's better 68 00:03:41,360 --> 00:03:43,200 Speaker 2: than living in the car or a living rough, but 69 00:03:43,280 --> 00:03:46,440 Speaker 2: it's not very nice. I'm not so sure about having 70 00:03:46,520 --> 00:03:49,280 Speaker 2: a removal of balconies, particularly when we can have no 71 00:03:49,360 --> 00:03:53,360 Speaker 2: opening windows. In addition to these full size it probably 72 00:03:54,240 --> 00:03:56,040 Speaker 2: it could be a better way to have some some 73 00:03:56,160 --> 00:03:59,040 Speaker 2: minimum stands there, just to make sure that our country's 74 00:03:59,040 --> 00:04:00,400 Speaker 2: most vulnerable aren't leaves behind. 75 00:04:00,560 --> 00:04:02,200 Speaker 1: David, it's really good to get your perspective on it. 76 00:04:02,200 --> 00:04:05,200 Speaker 1: Thank you very much. David Whitburn, professional property developer and investor. 77 00:04:06,000 --> 00:04:09,160 Speaker 2: For more from Hither Duplessy Allen Drive, listen live to 78 00:04:09,240 --> 00:04:12,280 Speaker 2: News Talks a B from four pm weekdays, or follow 79 00:04:12,320 --> 00:04:14,080 Speaker 2: the podcast on iHeartRadio.