Auckland building consent fees rocket

Posted by lindsay on August 25, 2014

An Auckland property investor has pointed to sky high costs when dealing with the council as a reason why residential development in the city is slowing and prices are rising.

Andrew Bruce, president of the Auckland Property Investors' Association wrote in the New Zealand Herald recently that some building consent fees had risen by 2000 per cent over the past 11 years. He said this was restricting new building work in New Zealand’s biggest city.

“An APIA member who has built numerous minor dwelling units throughout Auckland over the past 13 years has felt the price-pinch.” Mr Bruce wrote.

“Back in 2003 he intimated to me that obtaining a consent for a minor dwelling unit cost $2,000.

“Recently he received approval for a similar consent that cost $42,000.

“This is the equivalent of a 2,000 per cent increase in price over 11 years.”

“Included in the $2,000 council fee back in 2003 was a $684 charge for a water meter.

“Today the price for a water meter and connection from WaterCare is a minimum of $12,770 which is a 1,767 per cent increase over 11 years.”

Auckland needs new houses to combat high house price inflation and with consent fees rising so steeply developers are reluctant to commit to projects – fueling the lack of supply in an already overheated market.