Mosgiel property values - effects of planning changes image 1

Mosgiel property values - effects of planning changes

Mosgiel property values - effects of planning changes

Wednesday 31 Mar 2021

Planning zones in Mosgiel, Dunedin are changing - what does that mean for the value of your property?

Many homeowners are aware that the DCC is bringing in the new 2GP plan. This is the overarching plan that guides how Dunedin is developed and grown in the future.

The DCC has now released Variation 2 of the 2GP, which is designed to release more land for development of housing. This was brought about because Dunedin’s population growth has been greater than originally forecast and is predicted to be greater still moving forward. This has increased pressure on housing now and into the future.

A key driver of current housing stress in Dunedin is shortages in all areas of residential housing. Whether it is renting and investments or owner occupiers, there is pressure in all areas. Homeowners in Mosgiel may be aware that the 2GP has had a variation (referred to as Variation 2) released and this may affect what you can build and the potential value of your property.

The Mosgiel area is split into many zones under the 2GP. These include:

• Low Density Residential
• Large Lot residential
• General Residential 1
• General Residential 2
• Taieri Plains Rural
• Industrial
• Hill Slopes Rural
• Rural Residential

Each of these have their own rules and requirements that dictate housing density, minimum site sizes, setbacks, building rules, use of land etc.

Let’s focus the effect of Variation 2 on General Residential 1 and 2 on Mosgiel. Note this is a summary of relevant key points. There is more detail available in the DCC documentation and a full review of this should be undertaken regarding individual properties.

Variation 2 impact on General Residential 1 Zone:

Allows minimum site sizes of 400m2 for a single dwelling or 500m2 for a building with 2 units or duplex, meaning you could potentially subdivide if your property is greater than 800m2. This is a reduction is minimum sizes allowed. If your section is 500m2 or larger you could replace your single house with a duplex or 2 unit building. If it is a larger home, then potentially it could be split into 2 units.

Variation 2 effects on General Residential 2 zone:

The key changes under Variation 2 in this zone allow for smaller minimum site sizes of 300m2, meaning that if your current property is 600m2 or over you may be able to subdivide.

There is allowance for 1 habitual room (bedroom) per 45m2 or 1 habitual room (bedroom) per 100m2 in a wastewater constrained area. This is without limit on the number of individual dwellings there are. However, you will need a resource consent if there are going to be more than 3 dwellings.
In the Mosgiel mapped area, you may be able to build closer to the boundary, 1m from side boundaries and 3m from the front boundaries. Variation 2 also allows for greater site coverage.

What does this mean if you own a property in Mosgiel?

Be aware of your zoning and the potential that it holds. You may be able to subdivide your section, increasing the value of your total property.

If you’re thinking of selling or subdividing in Mosgiel, it is important that good advice is sought. Talking to the DCC about the rules that apply to your property is important. You can also talk to planning consultants or surveyors. Get in touch with Andy at Colliers and we can discuss the potential value in the property under different scenarios. Gather information to make an informed decision.