Every three years, we go through this period of uncertainty. Given the length of time that it takes to draft and introduce new legislation, it seems a no-brainer that the opportunity for change should perhaps happen less often than the current three years.
In the subdivision and resource management space there is guaranteed to be change with a new government. National say that they will repeal the three new acts set to replace the existing Resource Management Act. The alternative is that the three new acts will gradually be implemented in coming years as central and regional government rewrite the rules. This layered approach enables central government to write the overarching rules that affect all areas, and the Regional Councils to control zoning and development, rather than local councils - as is the case at present.
Regardless of what the powers say, I believe that the act of subdividing land to create new sections for families to build on will never get any easier. We have been through legislation change many times in recent decades and have always seen the process become more complex and expensive.
So, we are sticking by our advice to our clients. If you have any plans to subdivide, there is no better time to start, to avoid disappointment. The subdivision process takes time, as there are many aspects to be designed and reported on to your local council. However, when well-managed, all of the issues can be worked through without stress with an experienced subdivision project manager at your side.
Depending on the issues and availability of experts, contractors and local council staff, the subdivision process can take a year or two to navigate through. This time requirement is well worth considering when preparing to meet the market demand. There will always be some demand for sections, but history shows us that the easiest sales and best prices are obtained in a period of falling or stable interest rates.
Interest rates have stabilised in recent months and we are already seeing section prices firming. This forms the base for a rising market over the next year or two, and that is what experienced developers are eyeing up as they work through the process of obtaining consents for future subdivisions right now. Another advantage that they see here is the availability of the team to undertake the work without pressure and at a good price. What a contrast to the COVID years of 2020 and 2021.
If you have any plans to subdivide in the future, it would be a good time to contact your local subdivision specialist to advise you on the best way of managing the process. Please feel free to give us a call, rather than let the opportunity slip away.