PROPERTY BRICE RISE ON THE COAST

BY DR CLAIRE FREEMAN - DIRECTOR OF THE PLANNING PROGRAMME AT OTAGO UNIVERSITY. RESEARCH TEAM MEMBERS: DR CHRISTINE CHEYNE (MASSEY UNIVERSITY), PAULA DING (OTAGO UNIVERSITY PLANNING PROGRAMME NOW INVERCARGILL CITY COUNCIL), NORAH ELLERY (OTAGO UNIVERSITY) AND DR JIMWILLIAMS (OTAGO UNIVERSITY). I. (2004) INDEPENDENT REVIEW OF THE COASTAL POLICY STATEMENT, SCHOOL OF ENVIRONMENT PEOPLE AND PLANNING, MASSEY UNIVERSITY, .

n 2002 news media as varied as the Otago coastal property prices in New Zealand. Whilst for Northland coasts within easy reach of Auckland, DailyTimes, the Manawatu Evening Standard, some years, high prices had been characteristic what was different in 2002 was that rapidly rising the Sunday StarTimes and the Listener were of coastal communities in places such as the property prices were being reported from areas full of reports about the phenomenal rise of Marlborough Sounds, Mount Manganui, and previously characterised by stable, usually low property prices.This property 'boom'has for the most part, been presented in the media as a great I bonus for these settlements and indicative of

a positive and welcome economic development. I However, there was a dissenting but less publicised voice coming through questioning this trend,and pointing to the loss of the coast for many New Zealanders through the sale of coastal campsites such as Hot Water Beach and the growing concentration of coastal properties in the hands of wealthy New Zealanders and foreign buyers. The coast has always been important to Kiwis. Nearly all New Zealand's largest towns and cities, home to the majority of New Zealanders are located on or near to the coast.The beach is an integral part of the'kiwi'culture and psyche.It is where they,and many New Zealanders, have strong memories of holidays on the beach and at the family bach or campsite. For Maori the coast has important ancestral and cultural connections such as the gathering of kaimoana. The'property boom'has found communities and the planning profession unprepared for dealing with the development pressures and social transformation that the boom has brought. .<- ,.5 ...- - -- -.~.' +m,..-- - - In New Zealand the policy focus to date, has been . - * "., . - - ._.- : . ?e- . - concentrated on rural communities experiencing -.'me . - -- decline or in isolation from the mainstream and on RIGHT:: The property 'boom'has affected most coastal settlements around New Zealand.

metropolitan areas experiencing growth pressures. relevant and includes reference to the need for research addressed a number of questions, namely: Small rural coastal communities characterised by "avoiding sprawling or sporadic subdivision, use What is the extent of the'boom'is it occurring relative stability have been largely overlooked in or development in the coastal environment" in all settlements,on all types of properties,and policy development and wider strategic planning, andl'avoiding cumulative adverse effects of who are the sellers and who are the buyers? Planners working with these communities find subdivision, use and development in the coastal How do the communities feel about the themselves working in a relative policy vacuum environment"(policy 1.l .l).Whilst the National 'property boom'and its effects on their when it comes to dealing with communities Coastal Policy Statement is a valuable guide communities? subject to unexpectedly rapid social and physical it does not fill the policy gap that surrounds What are the social,economic and planning changes.These changes bring to the fore a small communities. Neither judging from the impacts of rising property values on the number of issues,aside from those directly related submissions to the National Coastal Policy community? to built developments that are of particular Review, has it been successful in averting such Are there any groups who are particularly concern for planners, including: developments for as Rosier in her review notes: affected and if so how? Impacts on fragile coastal environments, "There is concern that once a small amount of What are the strategieslactions that may need environments that are prone to erosion and development occurs, it will be impossible to stop, to be taken to mitigate any negative effects on which often contain fragile natural habitats resulting in development of almost all accessible existing communities? such as estuarine and dune habitats beaches and harbours,and increasing pressures The research was carried out in 6 coastal Infrastructure inadequacy, namely sewerage on estuaries.This cycle of incremental decisions communities that were experiencing substantial and water- many settlements use septic tanks about development ultimately leads to increased rises in property prices.In the South Island, Kaka and are reliant on rain water demands for services and infrastructure, ending Point, Karitane and Moeraki and in the , Development related demands for up with more intensive development (Rosier, 2004, Waitarere, Foxton Beach and Himatangi Beach were infrastructure that can not be met by existing p.49). selected as case studies.Data for the research was budgets, e.g. piped water, footpaths, flood obtained from real estate records, local authority prevention measures The Study documents and from interviews with community Increased potential for pollution related to the This article outlines th'e findings of a research representatives,councillors, local council officers growth study on coastal development undertaken by (primarily planners and community development Social change team of researchers based at Otago and Massey workers) and realtors.Within the space of this In coastal settlements planners are primarily universities.The study,funded by the University of article it is only possible to give a very brief dealing with two development processes, Otago was undertaken in 2004 by 5 researchers summary of some of the findings. the intensification of development within who work in the fields of planning,finance, Maori settlements and the expansion of settlements studies and social policy The aim of this study was The Property Boom through development along the coast and in to explore the impact of rising property prices on The six settlements have experienced sizeable the coastal hinter1and.h this regard the National coastal settlement communities and to ascertain price increases, much greater than comparative Coastal Policy Statement of 1994 is especially the community view on this development.The price rises in the local area.The graphs (Figure

SEPTEMBER 2005 :: PQ 11 1) show the property price rise for Waitarere there have been recent developments aimed at Negative compared to Levin and New Zealand generally, increased tourism. All have strong Maori historical On the negative side there were deep concerns and for Kaka Point compared to South Otago and connections to the land and are important to the about the impact of an influx of buyers with little New Zealand generally. All the coastal settlements Maori community. Residents in the settlements connection to the community, about growing show price rises much greater than those for have strong relationships with the beach social polarisation as most incomers were wealthy places in the local area not located on the coast. and speak highly of the'laid back'close knit and the possible loss of the laid back lifestyle.The Price rises and the speed of sales for properties community, but are concerned about declining commonest source of buyers was Central Otago adjacent to or with views of the sea were services.The changes associated with the property for the South Island and Wellington for the North particularly high.Anecdotal evidence suggests boom have been both positive and negative. Island.There was no evidence of buying by foreign that the rise is now easing but the gap that has investors, except for the odd one or two sales. developed is unlikely to go away and any fall in Positive Council officers and local residents expressed prices will be small. Realtors reported that house On the positive side an increase in population is concern that the incomers often come in with prices are not expected to fall to the earlier low seen as good for maintaining facilities and services expectations of'urban'standards e.g.footpaths, levels. such as schools and shops. All reported increasing lighting and roading.They are also perceived levels of vibrancy and a more positive atmosphere to be less tolerant,with limited understanding The Impacts on the Community generally.This contrasted with previous years in of appropriate behaviour; examples mentioned The changing character of the community: which some of the communities had been seen as include putting up security lights that come The case study settlements are small independent places characterised by'rascals and ratbags'and on as you walk on the beach, building decks communities characterised by small populations, as places with high levels of welfare dependency. and fences that impinge on the beach reserve with overall low median income levels.All the The'boom'has meant that people can now and uncontrolled youngsters dn quad bikes. settlements are experiencing major growth and invest in their properties and there was evidence Sentiments such as we don't want a'city lifestyle' development pressures after long periods of everywhere of DIY, home extensions, home or to be like'waikanae'were common.The biggest stability and even decline. Decline in services improvements and new housing.Some people who concern, however, was the increasing lack of such as schools, public transport, health facilities had been'trapped'in the settlement by low price affordable housing for families and for locals, and of traditional industries such as fishing has unsaleable properties had been able to sell up and increasing rents which were forcing people out been evident in recent years. In summer they move to town,this particularly applied to elderly and rate increases related to increased property experience a significant influx of holiday makers people who wanted to be closer to the public values. Maori were especially concerned about the which is important to the local economy and transport and health services available in town. impact of development and growth on sites with cultural significance, the effects of pollution and other growth related impacts on kaimoana.They also expressed concern about the difficulties being experienced by community members wanting to return to their papatipu areas but unable to due to rising house prices.

The Future There is a diversity of views on the future of the settlements.There was general consensus on the need for development, but not on how much development.The large subdivisions characteristic of Waitarere, Foxton Beach and proposed for Himatangi beach were seen as inappropriate.Smal1 scale developments such as motels, restaurants such as'Fleurslat Moeraki,caf@s,better parking, and play areas which are seen to add vibrancy to the settlements but don't compromise its low key lifestyle feel were generally welcomed.

Issues for Council The interviewees commented generally on the council and didn't differentiate between planners and other council officers, but did highlight a number of concerns of direct relevance for planners. Local residents were concerned at what threatened to breach its banks to communities under pressure.The timeframe they saw as major physical and social changes in and to flood Foxton Beach. of the District Plan makes it too slow process their communities resulting from the rapid rate of to respond to communities facing the rapid development, especially the major subdivisions Issues for Planners development pressures evident in our study characteristic of the North Island communities. In Our research highlighted a number of issues for communities. However, the Long Term Council the South Island whilst no major subdivisions have planners including the need for the following: Community Plans with their emphasis on yet been proposed for the settlements themselves lmproved development and strategic planning community involvement and their shorter time there have been proposals for lifestyle block type guidance at both local and national level frames may prove to be an important asset subdivisions around Moeraki that will significantly Better recognition and addressing of the in this regard.What is clear is that the current change the coastal character.There were concerns cumulative effects of incremental development situation where communities are facing major about incremental growth within settlements and and the implications of development on transformations dictated by the vagaries of the on its periphery,especially development along infrastructure and services property market does not present an acceptable the beachfront and the coast. All the communities Greater understanding of the social changes basis for community development of some of New expressed unease about the scale of development associated with rapid coastal development Zealand's fragile, precious and well loved coastal and wanted to have a voice in decision making. Clear development and design guidance assets.We thank all our interviewees for sharing Some (but not all) communities felt particularly for both new housing and subdivisions with us their love of the coast and their hope and disenfranchisedby what they saw as'remote'or appropriate to the coastal setting fears for its future. :: disinterested councils and made strong pleas to be lmproved long term planning based on an informed and invo1ved.A number of interviewees agreed community vision for the settlement Further information and limited copies of the full suggested that some type of community plan lmproved communication channels between report are available from Dr Claire Freeman at the or visioning exercise would be useful and all council and the community, in particular University ofOtago, [email protected] wanted to work with not apart from their councils. improved communication with Maori and with Communities were invariably measured and communities where the main council office is Reference realistic about what they expected from the physically at a distance from the community. Rosier, J. (2004) IndependentReview of the New council in terms of facilities and were prepared lmproved communication between council Zealand CoostalPolicy statement, School of to devote their own resources when needed departments and between councils. Environment People and Planning, Massey as occurred during the recent floods when the At present there is no mechanism for responding University, Palmerston North.

SEPTEMBER 2005 :: PQ 13