Summarised by Centrist
Watercare’s new map, highlighting Auckland suburbs with limited water and wastewater capacity, has blindsided developers and agents, halting planned projects and slashing property values in affected areas.
Suburbs in the “red zone” may face development bans until infrastructure upgrades, potentially delayed until 2035.
Developers like Craig Alexander, who planned a Henderson project, now face significant financial losses. “It’s a blindsider,” Alexander said, warning that some developers relying on high-interest loans “will go under.”
Harcourts agent David Findlay noted the constraints polarised the market, boosting demand and prices in unaffected areas while devastating red-zoned property values. A Massey homeowner, expecting $1.2m for her site, may now get only $900,000. Developer Ben Pauley added that second-tier lenders charging up to 14% interest could push landowners to sell at steep losses.
Watercare defended its map, with chief strategy officer Priyan Perera stating it aims to provide early warnings to developers, preventing costly last-minute surprises. “The map is never a blanket no,” Perera said, noting that 50% of inquiries since its release have been approved. However, he dismissed claims that the constraints directly impact property prices, attributing market shifts to broader economic factors.
Critics argue the policy could stifle Auckland’s housing supply and push developers to other cities.
