The Central Otago District Council has recently issued its decision on Plan Change 19, a comprehensive update to residential planning rules across the district.

The decision is now partly operational with other parts of the plan change subject to ongoing appeals.

Plan Change 19 represents the biggest change to residential planning rules in the district since the current district plan became operational in 2008.

The changes bring opportunities for property development, housing solutions, and community growth. Here's an overview of what some of the changes mean for you.

New Residential Zones Explained

Plan Change 19 introduces three new residential zones to better manage growth:

1. Large Lot Residential Zone (LLRZ): This zone aims to provide lower density and lower rise living. It features larger section sizes and provides for open space to dominate over buildings.
2. Low-Density Residential Zone (LRZ): This zone is the main residential zone in the larger centres of the district (Alexandra, Clyde and Cromwell) and covers the residentially zoned areas in the townships of Roxburgh, Ettrick, Millers Flat, Omakau, Ophir, St Bathans, Naseby, Ranfurly and Patearoa. This zoning offers a traditional suburban environment containing predominantly detached homes with moderate lot sizes.
3. Medium Density Residential Zone (MRZ): The MRZ supports compact housing, such as townhouses and smaller lots. It encourages efficient land use and caters to the growing demand for urban living spaces in certain parts of Cromwell, Alexandra and Clyde. The main MRZ zoned areas provide for more intensive and higher rise (up to 11m above ground level or up to 8.5m above ground level in Precinct 1) residential development. 

These zones aim to reflect the need to provide for growth in certain areas of the district whist balancing infrastructure capacity, and the distinct character of each area within the district.

Subdivision Opportunities

Plan Change 19 amends subdivision standards to potentially allow for smaller lot sizing in certain areas. Here’s some of what’s new:

• Low-Density Residential Zone (LRZ): The subdivision standards in this zoning provide for a minimum lot size of 400m2 provided a reticulated sewerage system is installed or is available. Where a reticulated sewerage system is not installed or available then the minimum lot sizing is 800m2.
• Medium Density Residential Zone (MRZ): The subdivision standards in this zoning provide for a minimum lot size of 200m2 provided a reticulated sewerage system is installed or is available. Where a reticulated sewerage system is not installed or available then the minimum lot sizing is 800m2.
• Large Lot Residential Zone (LLRZ): The subdivision standards in this zoning provide for a minimum lot size of 1500m2 other than in certain precincts (Precinct 1 – minimum lot size of 1000m2, Precinct 2 - minimum lot size of 3000m2, and Precinct 3 – minimum lot size of 5000m2).

Subdivision projects can now potentially provide for a greater range of lot sizes and more intensive development in certain areas.

However, it is recommended that any potential developers undertake a site-specific development appraisal with a team of experienced land professionals before considering any subdivision project.

It must also be appreciated that some of the minimum lot size standards are subject to appeal.

Adding a Minor Residential Unit (MRU)

One of the more practical additions in the new residential zoning rules is the ability to potentially add a minor residential unit (MRU) without resource consent in certain zones.

• What is an MRU? An MRU is a self-contained secondary residential dwelling unit (sometimes referred to as a granny flat), that is built on the same property as the primary residence.
• Where is it permitted? The new rules provide for one MRU per principal residential unit on sites within areas zoned LLRZ, LRZ and MRZ, provided the MRU meets specific criteria, including complying with the maximum dwelling size (i.e. maximum floor area of 70m2 or 90 m2 including a garage), infrastructure requirements (must use the same servicing connections and accessway as the principal residential unit), and must otherwise comply with all other building standards applicable to the relevant zone.
• Benefits of an MRU:
  • Provides additional accommodation for family members or rental income.
  • Potentially increases property value and optimises land use.
  • Helps address housing shortages in the region.

Whether you want to build an MRU for extended family or as an investment unit, the updated zoning framework potentially provides more flexibility to make it happen. 

Key Growth Areas

Plan Change 19 aligns with the Cromwell and Vincent Spatial Plans, targeting specific areas for growth and development:

• Alexandra, Cromwell, and Clyde: New medium-density zones have been provided for in designated central parts of these towns to meet increasing demand for a range of housing options in these growing urban hubs.
• North Cromwell: The plan introduces new proposed zoning for North Cromwell to potentially provide for smaller lot size options. However, this area is subject to several appeals which may not be resolved for some time.

These updates aim to provide a range of housing options to cope with current and anticipated growth across the district.

Why Work with Land Professionals?

Navigating zoning rules, subdivisions, or planning an MRU can be complex, and there may be site-specific issues that complicate or prevent a project from proceeding.

As such, it is advisable to take tailored advice from a team of experienced land professionals with knowledge of Central Otago property before embarking on any project.

Getting Started 

Plan Change 19 opens up possibilities for property owners and developers in Central Otago. Whether you’re considering a subdivision, adding an MRU, or exploring the potential of the new rules, now is good time to consider your options.

Checketts McKay Law have been advising on land projects in the district for generations and in recent years have helped property developers deliver some of Central Otago’s most significant development projects.