Auckland Council has confirmed changes to its development contributions (DCs), lowering the originally proposed fee increases — but not without controversy.
While the revised fees are slightly less eye-watering than the 200%+ hikes initially consulted on, the sting remains: many areas are still facing increases of over 100%, and an automatic 2% annual rise has been quietly added without public consultation.
Property Council New Zealand has been vocal in our opposition. We have submitted formal feedback, met with elected officials, and spent months awaiting the final outcome. Throughout the process, we have consistently pushed back against proposals to collect DCs over a 30-year period and called for significant fee reductions and greater local transparency — including ring-fencing funds for use in the areas where they’re collected.
In parallel, we welcomed moves from central government to design a new, nationwide development levy system. We now urge councils to hit pause on further changes until the new framework is rolled out.
Even more encouraging, is the Government’s intent to establish a monitoring function — a watchdog to ensure DCs are fair and transparent across the board.
“The message is clear,” says Property Council chief executive Leonie Freeman. “The current system isn’t working. A more balanced, transparent approach is urgently needed.”
Author | Leonie Freeman
A well-respected industry leader, Leonie has extensive experience in the New Zealand property industry, having held top positions in both the public and private sector. From creating the concept of what is now realestate.co.nz, to buying and transforming her own residential property management business, helping establish the new Auckland Council, and managing asset development for Housing New Zealand, there’s not many areas of property that Leonie has not touched.
In 2011, Leonie was appointed to the board of NZX listed company Goodman Property Trust, and up until her 2018 appointment as Property Council’s Chief Executive, she dedicated her time to leading an independent philanthropic initiative to solve Auckland’s housing crisis.
