Insight

Making Auckland the World's Most Livable City

Auckland, Soon to be the Most Livable City
EC

Ed Crook

January 4, 2017 12:00 AM

As of September 6, 2016, the average house price has exceeded NZ$1 million, and debate continues as to the cause of the crisis. The identified culprits include immigration (in the year to June 2016, net migration was 69,000 people, of whom more than half have indicated an intention to live in Auckland—this equates to an estimated 650 additional people arriving in Auckland every week), a regulatory regime that means that getting council consent for a new development is both time-consuming and costly, and a lack of land supply. This latter category includes limitations imposed on intensification of use under the planning regime, but blame is also placed at the door of the council for failing to do enough with land in its ownership. The council (and its controlled organizations) is a significant landowner. Some of the land owned by council could be developed alone while other land could be used to create development opportunities when aggregated with adjoining land in private ownership.

Auckland is currently grappling with a housing crisis.

For surplus land held by the council (or the crown) that may be able to be used for residential development, the council has a number of choices to make. The first is whether or not to sell. Once the decision to sell has been made, the council has a responsibility to not only realize the best price possible for the land (to the benefit of ratepayers), but must also consider whether it can, through the sale transaction, achieve a positive outcome for the city in general.

The council has a vision: to make Auckland the world’s most liveable city. This year it has been assessed by Mercer to be the world’s third most liveable city and the eighth by The Economist. Auckland has been gifted an excellent head start by nature, too: the city is next to a beautiful harbor (although the council-owned port on the waterfront is unfortunate) and has a fantastic climate that is rarely unpleasantly hot or unpleasantly cold.

In considering what to do with surplus developable land, the council needs to consider whether the development of that land could assist with Auckland’s global ambition. In many cases the answer will be no, and the best outcome for the council and ratepayers of Auckland will be a simple sale of the land to the highest bidder where the council then accepts the inherent risks in allowing the private sector to determine if, when, and how to develop the land.

Other surplus land may provide an opportunity, if developed appropriately (either alone or together with adjoining privately owned land) to make a significant contribution to the Auckland city environment. In this case, the council must do a deal with the private sector, which will require a meeting of the minds between the council and the private sector. Experience indicates that this is easier said than done.

The council has a vision: to make Auckland the world’s most liveable city.

The council is developing a good track record on such transactions, but could still do better. Common themes that can be identified in the successful transactions are:

  • That the council has an internal champion. This requires a council officer who will own the success of the project. The council side of the transaction will inevitably need the approval of many internal stakeholders. The internal champion will need to manage all of these internal stakeholders and translate their multiple demands into a commercial transaction that can be understood and agreed to by the private sector.
  • That the council’s objectives for the development properly recognize the market for the development—the development risks and commercial risks.
  • That the council properly understands the assets and value that it is contributing to the development and the opportunity cost of ongoing council intervention in the development outcomes.
  • That the council recognizes it is entering into a mutually beneficial partnership with the private sector, not a relationship of master and servant.

The private sector is looking forward to continuing the journey with the council and, together, making Auckland the world’s most liveable city.

Related Articles

There’s Hope for the Canadian Real Estate Market Post COVID-19


by Steven Tulman

Clover Mortgage offers advice and predictions on the Toronto real estate market as we move on post-pandemic.

Canadian Real Estate Market Post COVID-19

The Partnership Opportunity


by David Harley, Shaun Whittaker, Tony Rutherford, and Troy Lewis

Doing well and doing good need not be mutually exclusive. Housing developments that provide both solid long-term returns and positive social outcomes, often through public-private partnerships, are an idea whose time has come throughout Australia.

Housing Developments in Australia

No Place Like Home


by Janice Zhou

The housing crisis across the country has been exacerbated by the COVID-19 pandemic, California being no exception. However, state laws have recently been passed to address the problem.

Two people in a window

Trending Articles

2025 Best Lawyers Awards Announced: Honoring Outstanding Legal Professionals Across the U.S.


by Jennifer Verta

Introducing the 31st edition of The Best Lawyers in America and the fifth edition of Best Lawyers: Ones to Watch in America.

Digital map of the United States illuminated by numerous bright lights

Unveiling the 2025 Best Lawyers Awards Canada: Celebrating Legal Excellence


by Jennifer Verta

Presenting the 19th edition of The Best Lawyers in Canada and the 4th edition of Best Lawyers: Ones to Watch in Canada.

Digital map of Canadathis on illuminated by numerous bright lights

Legal Distinction on Display: 15th Edition of The Best Lawyers in France™


by Best Lawyers

The industry’s best lawyers and firms working in France are revealed in the newly released, comprehensive the 15th Edition of The Best Lawyers in France™.

French flag in front of country's outline

Announcing the 13th Edition of Best Lawyers Rankings in the United Kingdom


by Best Lawyers

Best Lawyers is proud to announce the newest edition of legal rankings in the United Kingdom, marking the 13th consecutive edition of awards in the country.

British flag in front of country's outline

Announcing the 16th Edition of the Best Lawyers in Germany Rankings


by Best Lawyers

Best Lawyers announces the 16th edition of The Best Lawyers in Germany™, featuring a unique set of rankings that highlights Germany's top legal talent.

German flag in front of country's outline

Prop 36 California 2024: California’s Path to Stricter Sentencing and Criminal Justice Reform


by Jennifer Verta

Explore how Prop 36 could shape California's sentencing laws and justice reform.

Illustrated Hands Breaking Chains Against a Bright Red Background

Celebrating Excellence in Law: 11th Edition of Best Lawyers in Italy™


by Best Lawyers

Best Lawyers announces the 11th edition of The Best Lawyers in Italy™, which features an elite list of awards showcasing Italy's current legal talent.

Italian flag in front of country's outline

Combating Nuclear Verdicts: Empirically Supported Strategies to Deflate the Effects of Anchoring Bias


by Sloan L. Abernathy

Sometimes a verdict can be the difference between amicability and nuclear level developments. But what is anchoring bias and how can strategy combat this?

Lawyer speaking in courtroom with crowd and judge in the foreground

Things to Do Before a Car Accident Happens to You


by Ellie Shaffer

In a car accident, certain things are beyond the point of no return, while some are well within an individual's control. Here's how to stay legally prepared.

Car dashcam recording street ahead

The Push and Pitfalls of New York’s Attempt to Expand Wrongful Death Recovery


by Elizabeth M. Midgley and V. Christopher Potenza

The New York State Legislature recently went about updating certain wrongful death provisions and how they can be carried out in the future. Here's the latest.

Red tape blocking off a section of street

Tampa Appeals Court ‘Sends Clear Message,” Ensuring School Tax Referendum Stays on Ballot


by Gregory Sirico

Hillsborough County's tax referendum is back on the 2024 ballot, promising $177 million for schools and empowering residents to decide the future of education.

Graduation cap in air surrounded by pencils and money

Find the Best Lawyers for Your Needs


by Jennifer Verta

Discover how Best Lawyers simplifies the attorney search process.

A focused woman with dark hair wearing a green top and beige blazer, working on a tablet in a dimly

Key Developments and Trends in U.S. Commercial Litigation


by Justin Smulison

Whether it's multibillion-dollar water cleanliness verdicts or college athletes vying for the right to compensation, the state of litigation remains strong.

Basketball sits in front of stacks of money

Is Premises Liability the Same as Negligence?


by Jeremy Wilson and Taylor Rodney Marks

In today's age, we are always on the move, often inhabiting spaces we don't own. But what happens when someone else's property injures you or someone you know?

A pair of silhouetted legs falling down a hole with yellow background

Woman on a Mission


by Rebecca Blackwell

Baker Botts partner and intellectual property chair Christa Brown-Sanford discusses how she juggles work, personal life, being a mentor and leadership duties.

Woman in green dress crossing her arms and posing for headshot

Best Lawyers Celebrates Women in the Law: Ninth Edition


by Alliccia Odeyemi

Released in both print and digital form, Best Lawyers Ninth Edition of Women in the Law features stories of inspiring leadership and timely legal issues.

Lawyer in green dress stands with hands on table and cityscape in background