November 25, 2020
The more, the merrier. Lets talk about the benefits of terrace housing. For many people looking to develop a property, the phrase terrace housing pops up pretty frequently. So today we thought we would discuss a little bit about terrace housing and how it may work for you.
What is terrace housing?
Terrace housing is where each property shares a wall with their neighbour to fit more housing in one area. It’s a type of medium-density housing that’s quite common across Europe and the UK due to the lack of land space available to accommodate everyone who lived there.
Terrace housing hasn’t been a popular choice for developers in Auckland in the past as many homeowners have come to expect their own four walls on a property they were looking to purchase. However, since Auckland’s rapid expansion over the last 30 years, first home buyers and developers alike are shifting their thinking around terrace housing and were beginning to see them pop up in almost every suburb.
Benefits of terrace housing
So you own a property in Auckland, and want to make a great return on your investment into the Auckland housing market? Great! Why not consider a batch of terrace houses.
Affordable to build – Terrace housing are often simple, repetitive designs built with the single goal in mind to maximise the investment of the property they are being built on. With each dwelling being connected to each other, there is no need for the hefty exterior material costs.
Pre consented plans create certainty – Developers with experience in terrace houses know what type of plan and its limitations will work with the local council. With pre-consented plans, developers and builders alike have certainty that a plan will work and everything has been consented and approved already.
A starting point for any land developer – A single block of terrace houses can be an ideal way to enter the world of property development. Especially in the Auckland market, your investment will see a return regardless of whether you plan to rent or sell once the project is completed.
Auckland Unitary Plan – Auckland council, have understood the need for terrace housing developments and thus have created an entire zone specifically designed for medium density development within the Auckland Unitary Plan. This is the highest intensity of house and building zoning intended to enable a higher intensity of development. The buildings in this zone are near town centres and public services for the residents to access easily.
The Auckland Unitary Plan also has the Mixed housing urban zone, which also allows houses to be three storeys and take on a smaller terrace housing development. Over the years, these zones will begin to change in their appearance as the buildings change from their original houses to the new three-storey terrace houses and low-rise apartments allowed under the Auckland unitary plan. The idea of this zone is to increase the housing options for those who are looking to live closer to the city.
If you have read this and think this is something you might be able to do with your Auckland property, feel free to download our free subdivision guide or get in touch with us via our contact us page. Who knows, maybe you’ll start your journey to becoming the next property developer in Auckland.