Convenience Drives Auckland Land Values Over Scenic Views

A recent analysis by the Auckland Council has revealed that convenience significantly outweighs coastal views when it comes to residential land values in Auckland. The study, which utilized last year’s property valuations along with a new spatial demand model, highlights how location plays a crucial role in determining land worth across the city.

The highest land values are found in areas such as Takapuna, the suburbs adjacent to the Central Business District (CBD), and the eastern bays. In contrast, areas like Massey West, Glen Eden, Māngere, and Ōtara experience the lowest land values. Despite being lower, many properties in the East Coast Bays, Devonport peninsula, Hobsonville, the main city isthmus, Howick, Totara Park, and Manukau still maintain values above the average.

According to Gary Blick, Chief Economist at the Auckland Council, the primary factor influencing land values is proximity to commercial centres. “Demand tends to be stronger in central locations and locations that are closer to things people need in their daily lives, such as access to services like shops as well as transport links and also jobs,” Blick stated.

While coastal amenities such as beaches and parks can enhance the value of some properties, the convenience of being close to essential services remains paramount. “Some people want a bit more personal space and are happy to live a bit further away and travel a bit more,” he added.

Transport corridors also play a significant role in increasing land values. Areas near major train stations or transport hubs benefit from rapid transit networks that offer frequency and speed. “People are prepared to pay a little bit more for those locations and the convenience they offer,” Blick explained.

Land values often differ notably from housing prices, influenced by the density of homes built or permitted under local planning rules. “When you enable more intensity or flexible use of land, it can be used more productively and that’s capitalised into the land value,” Blick noted. As land values increase, it allows for more flexible housing options, such as terraced houses or townhouses, which can lead to more efficient land use.

In a related development, the Auckland Council has initiated a public consultation process regarding a new plan change that will dictate the extent of residential intensification throughout the city. Chris Bishop, Minister for the Resource Management Act, announced that Auckland residents will have the opportunity to provide feedback on these plans from November 3 to December 19, 2023.

The findings from the Auckland Council analysis underscore the ongoing evolution of urban planning in Auckland, as the city grapples with balancing demand for housing, land use, and the desire for a vibrant community lifestyle. As the city continues to grow, understanding the dynamics of land value will be essential for residents and policymakers alike.