Your Backyard Goldmine

Do you have a goldmine 
in your backyard?

They’re not making any more land, so New Zealanders around the country are looking to make more with the land they do have. Even in Auckland, where there’s a housing shortage and land is at a premium, a recent survey showed there is the potential on existing sections to create another 100,000 houses.

The question is, though, are you best to extend your current home, add a second dwelling or subdivide?
There’s a new goldrush in New Zealand – the rush to accommodate more people in less space.

The boom has been driven by two factors. 

Rising house prices have made it impossible for many Kiwis to afford their own homes and skyrocketing rents have made it more cost-effective for them to stay with their parents, other family members or friends and help them pay their mortgages. 

On the other hand, the advent of AirBnB and the cost and scarcity of rental accommodation have made it lucrative for homeowners who do have any spare space to rent that space out.  
“Solutions to Auckland's housing challenges are rooted in smarter use of the land the city has available,” says Owen Vaughan, editor of the OneRoof property website. “Aucklanders with larger sections and the appetite to build should look to cash in on the ground beneath their feet.”

The same goes for many other urban and even provincial areas of New Zealand where housing and land are in short supply. The hottest housing markets right now aren’t Auckland, Wellington and Christchurch, according to OneRoof’s research. They are places like Turangi, Tokoroa, Patea, Palmerston and Milton, where prices have all risen more 30% or more over the past year.
But is subdividing your existing section the best way to cash in on the ground beneath your feet? A new report from homes.co.nz estimates that 100,000 homes can be built on existing Auckland sites but one expert has questioned that number. But one expert has questioned that number.

A new report estimates 100,000 homes can be built on existing Auckland sites but one expert has questioned that number. 

“How many sections can you practically subdivide when you look at sizes, shapes, slopes, location?” asks Bryan Thompson, Harcourts new managing director.

“The buzz in urban design is ‘hidden density’,” says Owen Vaughan. By that he means making better use of properties with minor dwellings on single properties, house extensions by building up, down or out, and subdividing larger properties.


The choice between these options comes down to a variety of factors, including land size, cost/benefit and local council regulations, according to the experts at Pzazz Building. 


“Auckland’s Unitary Plan has given us more options, but there are still limitations to consider,” says Kenny Leong of Pzazz Building Auckland East and Central. “For example, the maximum size permitted for a minor dwelling on a single property is 65 square metres, so if you have a larger section, subdividing may allow you to build a bigger house. Some smart cookies have even built the house first and then rented it out for extra income while they’re waiting for the subdivision to come through!”


If you’re looking to make the most of your property, talk to your local Pzazz Building affiliate for advice on the best way to go. We offer a free In Home Consultation so there’s no cost or obligation. 

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