Urban Intensification Policies Open the Door to New Investment Opportunities Across New Zealand
AUCKLAND, NZ — 12 August 2025 — A wave of urban intensification is reshaping New Zealand’s cities, creating one of the most promising environments for property investors and developers in recent memory. In response to a nationwide housing shortage and the need for more sustainable urban development, local councils are reforming zoning rules and planning frameworks to enable higher-density living and revitalised communities.
James Clarke, Director of James Clarke Property, believes the sector is entering a new era of opportunity. "Urban intensification isn’t just a policy direction — it’s a generational shift in how we build, invest, and live," says Clarke. “We’re seeing the alignment of government policy, infrastructure investment, and market demand in a way that creates long-term confidence for investors and developers.”
Cities like Auckland and Wellington are at the forefront of this transformation. Auckland’s Plan Change 78 is a landmark initiative that aims to quadruple the number of homes within the city centre. The plan relaxes zoning constraints, encouraging medium-density housing by allowing developers to build up to three dwellings per site without the need for resource consent.
Meanwhile, Wellington’s district plan reforms are similarly ambitious, reflecting a coordinated national approach. These policies aim to increase housing supply, reduce urban sprawl, and encourage infrastructure efficiencies — all while supporting growing population centres.
“This is not just an Auckland story,” says Clarke. “We’re seeing a ripple effect across the country—from Hamilton to Christchurch—as councils respond to government guidance and community pressure for more housing choices in urban areas.”
This policy shift is being met with increasing investor interest. In the first quarter of 2025, investors made up 27% of all property purchases, a significant increase that signals strong market confidence. According to forecasts from major New Zealand banks, house prices are expected to rise by 6.8% between December 2024 and December 2025, driven by both demand-side resilience and supply-side constraints in premium urban locations.
Clarke believes these conditions are ideal for seasoned and emerging investors alike. “The fundamentals are strong. Population growth, migration, interest rates, and government incentives are all moving in favour of those who are strategically positioned. For those with the right local knowledge and a long-term lens, this is a defining moment.”
The New Zealand Government’s Investment Boost policy has also added a new layer of appeal for commercial and residential investors. Under this initiative, businesses can claim an immediate 20% tax deduction on new productive assets, including commercial property and residential development infrastructure.
Medium-density zoning reforms further streamline the development process. By removing the need for resource consent on smaller-scale projects, developers can move faster from acquisition to construction — lowering holding costs and improving returns.
“Speed to market has always been a critical success factor in development,” Clarke notes. “With the right frameworks now in place, developers can deliver new housing stock in a more predictable and efficient manner, while aligning with councils’ long-term growth strategies.”
Beyond policy and planning, new build developments offer specific advantages. Properties built under the new intensification regime are typically more energy-efficient, better located for public transport, and designed with modern urban lifestyles in mind. For investors, these assets often qualify for depreciation benefits and offer stronger tenant appeal.
According to Clarke, this positions new builds as high-performing assets in a shifting market. “The rental market is responding positively to newer, better-located homes. These projects not only serve a social purpose but also perform well financially—especially when designed with the future of our cities in mind.”
James Clarke Property has positioned itself as a leader in future-focused urban development. With a portfolio focused on medium-density residential projects, the firm is committed to building housing that supports both market demand and long-term sustainability. The company leverages its deep local knowledge, planning expertise, and value-driven strategy to create high-quality developments across Auckland and beyond.
“Our goal is to be part of the solution — not just in terms of delivering more homes, but in helping to create better neighbourhoods,” Clarke explains. “That means collaborating with councils, architects, and community stakeholders to ensure every development aligns with the bigger picture of where New Zealand is headed.”
As the intensification wave continues to build momentum, James Clarke encourages investors, developers, and landowners to explore collaborative opportunities.
“This is a once-in-a-generation planning reset,” Clarke says. “It’s not just about building more—it’s about building better. For those who want to participate in the transformation of our urban environments, now is the time to engage.”
James Clarke Property is a privately-owned property development and investment firm based in Auckland, New Zealand. The company focuses on residential intensification, urban regeneration, and value-driven projects that align with long-term growth trends. With a commitment to transparency, integrity, and strategic foresight, James Clarke Property is building homes and communities that support New Zealand’s evolving urban landscape.
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For more information about James Clarke Property, contact the company here:
James Clarke Property
James Clarke
+64 27 317 3700
james@jamesclarkeproperty.co.nz
Auckland CBD
