Nelson-Tasman to receive 20 new SHAs
Last Friday we learnt 1700 new homes are to be built in the Nelson-Tasman region.
Building and Construction Minister Nick Smith announced government approval of 20 new Special Housing Areas. These developments will total approximately $800 million. Most of these new homes, being approximately 1050, are to be built in Richmond West.
So what does this all
mean for Richmond and the wider Nelson-Tasman region?
We believe it will result in the following:
- a massive investment in infrastructure - new subdivisions will provide new roading and all new reticulated services;
- the development of a new community within Richmond West to be called The Meadows including a new school;
- increased supply of sections;
- increased supply of housing with a variety of designs and styles;
- development of a new $130 million retirement village with approximately 160 villas and 50 care suites by Arvida Group, who own and operate the nearby Oakwoods retirement community.
More specifically for Richmond West it will mean:
- New reticulated services - water continues to be an issue. The team behind The Meadows was part of a group of developers who approached Tasman District Council and offered to co-fund the water supply infrastructure to enable the early development of up to 400 dwellings. Counsellors agreed to the infrastructure co-funding before they considered the SHA proposals. This work is estimated to cost $1.2 million in total, involving the provision of additional storage at the Richmond Water Treatment Plant equivalent to the existing balance tank, the installation of a backup generator for the treatment plant, and associated pipe, electronic and telemetry works.
- Increased supply of sections - starting prices will be approximately $250,000 for the smaller sites with higher prices for the larger sections. At the moment we believe the market is highly distorted with other developments selling stages within a day. Prospective purchasers have to rank their priority due to multiple offers on individual sections. This is resulting in section prices increasing due to an unsatisfied demand and lack of supply. These additional 1050 sections will increase supply and should improve affordability. It is anticipated the first sections could hit the market in late November 2018.
- Increased supply of housing with a variety of designs and styles - two-storey townhouses are proposed as a medium density residential development, along with some larger four-bedroom houses on 600 to 700 m² sections. The two-storey townhouses will overlook either Poutama Drain or Borck Creek, both to be developed as landscaped stormwater green spaces. Within modern developments the trend is for a wide variety of housing as there is demand from homeowners for this type of living.
- New retirement village – Arvida aim to provide an integrated village to break the mould of traditional retirement living by introducing a public community precinct, complete with a cafe, creche, health club and retail businesses.
As previously mentioned, this is a massive investment in infrastructure to meet an unsatisfied demand for residential property in Richmond and throughout the wider Nelson/Tasman area. It will lead to an increased supply of sections and new homes. It remains to be seen if it will reduce the overall cost of housing.
Proposed New Retirement Village