Developers Warned To Act Fast To Avoid Rising Water Connection Costs

Those who are considering developing their property are being warned that they will need to act fast to avoid rising water connection costs.

As of 1 July, Watercare will be increasing their water connection costs – for some areas of Tāmaki Makaurau, this could mean an increase of $8000 per water connection. For some, that's going to push the overall cost over $30,000.

“This increase stacks up very fast when you have multiple new dwellings; we have clients needing 5 or 6 connections,” explains Subdivide Simplified Director, Troy Patchett. “While an increase in connection costs is a common occurrence each year, we have never seen anything like this increase.”

Patchett, who has guided hundreds of first-time property developers through the process of subdivision and building, believes that this increase in cost will likely result in upward pressure on rents or sales prices.

“We need more quality, healthy homes built in Auckland to meet the demands of growth in the region. Over the past year, we have seen building costs stabilise – and even come down,” says Patchett.

“We should be incentivising the building of new, well-built homes, not discouraging them with this seemingly exorbitant new charge.”

Patchett is encouraging anyone who has been considering developing their Auckland property to act now to avoid this increased charge.

“If you have been sitting on the fence, considering developing – I’d get your application in as quickly as you can. It could save you quite a significant amount.”

The water connection price increase will take effect from 1 July, but those who get their applications in soon could avoid paying the new cost.

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