Reduced housing capacity requirements for Auckland’s Plan Change 120

What is PC120?
Plan Change 120 (PC120) is Auckland’s intensification planning policy, designed to enable housing supply through changes to zone standards and development rules.

On Tuesday 31 March, Government introduced legislation to revise minimum housing capacity requirements under Plan Change 120 for the Auckland Unitary Plan (PC120), reducing from approximately 2 million homes to about 1.4 million – a 32.5% decrease.

The legislation will also ensure that Auckland developments compliant with Medium Density Residential Standards (MDRS) between 18 August 2022 and 9 October 2025 will be able to continue.

This includes projects with existing approvals or those already progressing through the building consent process prior to the partial withdrawal of Plan Change 78. Applicants and consent holders are advised to contact Auckland Council to confirm whether this applies to them.

Property Council wrote to both Central Government and Auckland Council in October advocating for certainty for developers impacted by the immediate withdrawal of PC78, so we’re glad to see certainty will be re-instated.

Other provisions in the Resource Management (Auckland Housing) Amendment Bill:

Allow Auckland Council to use the Streamlined Planning Process for any PC120 changes resulting from the reduced housing capacity requirement
Exempt the Council from certain National Policy Statement on Urban Development (NPS-UD) requirements, including preparing Housing and Business Development Capacity Assessments and a Future Development Strategy for its 2027 Long-Term Plan

The proposed changes won’t affect the Councils obligations under the NPS-UD to enable significant housing growth, particularly through intensification around transport corridors and town centres.

Property Council continues to support intensification in central areas and near key transport hubs, while emphasising the need for consistent planning rules.

Next steps

The Government has indicated the legislation will progress quickly, likely through an expedited select committee process, although timelines are not yet confirmed.

Once enacted, Auckland Council will determine whether to amend PC120 in response to the reduced housing requirement. The Council may still choose to enable higher housing capacity. Any changes to PC120 will include further opportunities for public input.

Please reach out to Samantha to join our Auckland local government taskforce and stay up to date on the latest PC120 changes.

Author | Samantha Lay Yee

Samantha Lay Yee joins us as Senior Advocacy Advisor, bringing a wealth of experience from both central and local government. Most recently, she served as Principal Advisor at Kāinga Ora – Homes and Communities, where she contributed to policies shaping housing and community development.

Samantha is dedicated to making a positive difference through thoughtful advocacy. Known for her intelligence, kindness, and collaborative approach, she is committed to driving meaningful outcomes for our members and communities.

New Zealand Crane Activity Falls to Decade Low