Why Waikanae development land needs a Buy Now button

Two blocks of prime land in Waikanae on the Kapiti Coast are expected to attract strong national interest from forward-thinking residential and commercial developers now AMP Capital has completed a re-zoning process and placed them on the market.

Given the shortage of development opportunities in the wider Wellington region and in light of anticipated infrastructural benefits arising from the Wellington Northern Corridor roading projects, the Kapiti Coast is seen by many as the natural growth area for the lower North Island.

Todd Property Group’s 75% stake in the Kapiti Landing development, which includes the Kapiti Coast Airport (formerly Paraparaumu Airport) and about 83 hectares of surrounding land intended for industrial and commercial development, is evidence of the confidence being shown in the region.

This is further backed up by the planned expansion of the Coastlands Shopping Centre and the recent introduction of direct daily flights between Christchurch and Paraparaumu, adding to the existing Auckland to Paraparaumu daily service.

Now up for sale is a total of 43 hectares of land located on the northern side of Waikanae township, directly adjacent to State Highway 1, with access off the newly-formed Waipunahau Road and Parata Street.

Comprising Block 5 and Block 6 of the master-planned Waikanae North Precinct, the two blocks have their individual development fundamentals. The land comes to the market following the earlier successful sale of Blocks 1-4, land for a retirement village and land for a proposed school. The blocks now for sale represent the last of the land available in this precinct.

Zoning changes have been finalised and the two blocks now for sale complete a process facilitated and progressed by AMP Capital over a number of years, which has seen a total of 70 hectares of Waikanae land rezoned.

The northwestern parcel of land known as Block 5 is approximately 31.4 hectares zoned Preserve and Open Space under the Kapiti Coast Council district plan. The Preserve zoning is to encourage lower-density residential development while being mindful of native wetlands and the need to regenerate these areas.

Block 6 to the northeast is approximately 11.5 hectares and is zoned Village Precinct with Mixed Use, Multi-Unit and Open Space components. 

The blocks are for sale individually or as one lot and are being marketed by Grant Young and Stephen Lange of Bayleys Wellington, along with Gerald Rundle, Bayleys Auckland. Tenders close December 3.

“Both blocks are currently unimproved parcels of land with predominantly level contour aside from several small hills,” Mr Young says.

“The Preserve and Open Space zoning on Block 5 allows for maximum site coverage of 25%, with up to 152 lifestyle lots ranging in size from 500sq m to 2500sq m.

 “The zoning on Block 6 allows for higher-density residential, with maximum site coverage of 50% and a building height of eight metres, along with light commercial development including retail.”

Stephen Lange, who specialises in Kapiti Coast sales, says the coast is widely touted as being a significant growth area for the Wellington region over the next decade.

 “With residential land of any scale severely constrained in the broader region, the under one-hour drive or train commute from the Wellington CBD to Waikanae is seen as do-able for those looking to secure a value-for-money residential property within commutable distance,” Mr Lange says.

“Add in the lifestyle benefits the Kapiti Coast offers – including warmer climate, beaches, and excellent transport facilities – and the location really starts to stack up.”

Mr Lange says that, with some major infrastructure projects getting the green light, Waikanae is set to progress in leaps and bounds.

“This development land just north of Waikanae township should be resonating with entrepreneurial developers – particularly when we factor in the significant roading projects referred to collectively as Wellington’s northern corridor. 

“The new Kapiti Expressway, which will replace the existing State Highway 1, and the 27km Transmission Gully which will link the southern section of the Expressway with the Wellington/Porirua motorway will result in a resilient highway route north of Wellington City closing the gap with the Kapiti Coast.”

The Waikanae North area is already witnessing new investment with the $100 million Ryman Charles Fleming Retirement Village now operating and almost fully occupied, and Merritt Property Group’s Waikanae North residential subdivision under way. 

“This is further underpinned by the Ministry of Education’s decision to buy land for what is to be Waikanae’s third primary school,” Mr Young says.

“This commitment gives weight to the fact that Waikanae is a growing family-orientated area and not merely a retirement location.”

Jody Robb writes for Bayleys Real Estate