I have recently started receiving inquiries from investors who are looking at new properties with no onsite parking available. After some inquiries at the council planning office, I discovered that there is a push by central government to increase the housing density in our fair city and in fact, all the main centres. Currently within the four Aves of the city centre, there is no provision for any onsite parking. Outside this area, currently, new properties of less than 150sqm of floor space must have one park. Which seems fair but this provision will be removed next year. So we’ll start to see an increase of this type of property being built.
One of the inquiries was for a yet to be built 2 bedroom, 1.5 bathroom with 65sqm of floor space and a nice outdoor area. The property looks like a good rental or owner occupier prospect but I have concerns regarding the popularity of a property with no onsite parking as a rental. What compounds this issue is that it is 1 of 18 such units on the same site. If we do a little math, this one complex could attract 36 vehicles, all of which of course will be parked on the street.
With some more digging, I found that when all street parking has been taken by the tenants on a street, the owner occupiers have complained that people visiting their property can’t find a park anywhere close. The council then posts limited parking signs on one side of the street, further decreasing available parks for tenants and possibly reducing the pool of potential tenants to rent these properties. Most people, I feel, would at least want to park on the same block that their rental is on. Not to mention the added security risk when a vehicle isn’t parked up a driveway.
The majority of Kiwi’s are vehicle owners so I wonder how attractive this type of property is going to be for prospective tenants. Initially, these properties may rent well but when Christchurch returns to a high surplus of rental accommodation, what happens then.
Wayne Hawke. Director of Lanwayke Property Management.