Auckland Council chief economist Gary Blick said the biggest factor driving land values was proximity to commercial centres, particularly the CBD.<\/p>\n
\u201cDemand 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.\u201d<\/p>\n
Estimated residential land values per square metre. Image \/ Auckland Council<\/p>\n
Blick said some land could command higher values because it is close to natural amenities, like beaches, coastlines and parks.<\/p>\n
\u201c[Some] people want a bit more people space and happy to live a bit further away and travel a bit more.\u201d<\/p>\n
Transport corridors \u2013 particularly major train stations or transport hubs \u2013 can also increase land values.<\/p>\n
\u201cWhen you\u2019ve got a rapid transport network that gives you the frequency and speed \u2013 like around those station catchments \u2013 people are prepared to pay a little bit more for those locations and the convenience they offer.\u201d<\/p>\n
Land values can often differ significantly from housing prices, depending on how many homes have been built on land or could be built on land under planning rules.<\/p>\n
\u201cWhen you enable more intensity or more flexible use of land, it can be used more productively and that\u2019s capitalised into the land value,\u201d Blick said.<\/p>\n
\u201cEven though the land value goes up, you can use it more flexibly and you can use less land per home.<\/p>\n
\u201cYou\u2019re giving the person the choice to use less land and perhaps have a terraced house or townhouse-style home.\u201d<\/p>\n
Auckland Council this week voted to send a new plan change out to public consultation<\/a> which will dictate how much intensification can occur across the city and where.<\/p>\n