The City Rail Link will be one of the most transformational projects Auckland has ever seen. Perhaps nowhere else will see experience that transformation more than the inner west of the isthmus which effectively gets picked up and moved much closer to the city. As an example, a trip from Kingsland to the middle of town will reliably be less than 10 minutes at any time of the day.
So it’s no surprise then that even just the prospect of the CRL in the future is driving up demand for land in and around the rail network close to the city.
Commercial property on Auckland’s city fringe is already popular with mid-range investors but the planned City Rail Link (CRL) will really open up areas like Newmarket, Grafton, Mt Eden and Kingsland, predicts Nick Hargreaves, Managing Director of JLL.
Hargreaves says there are several forces at play that are making the city fringe suburbs so popular.
“The Proposed Auckland Unitary Plan allows for mixed use zones around urban centres and along high frequency public transport routes – making it easier for a variety of commercial and residential developments in the city fringe.
“In this regard, Auckland Council’s investment in transport will pay dividends for city fringe property owners in future,” Hargreaves says.
“The major improvement to the urban area around Britomart Station, following its opening in 2003, shows how investment in transport can lead redevelopment nearby. It brought new life to what was previously an under-utilised part of the Auckland city centre and attracted large employers like EY and Westpac.
Hargreaves says it’s notable that city fringe properties have been keenly sought by commercial property investors with an eye to the future during the past year.
Much of the land near the rail line in the inner west near the rail line and New North Rd is low-rise light industrial and the notified version of the Unitary Plan earmarks that for mixed use which would allow for significant redevelopment of the area. Importantly this land use change isn’t even counted Auckland Transport’s business case which suggested the economic benefits of the CRL will be $2.96 – $3.2 billion (BCR of 1.6-1.7). They did however note that just the redevelopment potential within the CRL designation footprint to be worth an estimated $1.2-1.4 billion.
While on the topic of the CRL, if you’ve been near Britomart recently you would’ve seen that works are well under-way on getting ready for the demolition of the Downtown Shopping Centre and the construction of the CRL tunnels and Commercial Bay development. The various elements from Queen Elizabeth square and Lower Queen St have been progressively removed – the removal of the glass canopy along Queen St has opened up a much better view of the Britomart – and from Sunday the shopping centre will be closed so demolition can get started. The shopping centre website even has a countdown timer to it closing.
AT have also uploaded several new images of what things will look like once the project is completed.
Britomart showing a redeveloped lower Queen St outside Britomart
On Friday, one of the fences surrounding the works site sprouted some large banners from AT showing some images of what things will look like after the CRL. One that intrigued me and sent me looking for new images on the AT website was this one showing a plan view of the image above (although it seems to be missing the Quay St cycleway).
This one shows what Pitt St will look like after the CRL is finished. It appears that Pitt St will be narrowed down to two lanes with those structures you can see likely to be ventilation for the station. The narrowing of the road by so much is potentially a concern as the New Network for Central Auckland retains the road as the route for many of the buses accessing the city from the west of the CBD. In other words, this could become quite a significant congestion point for these buses. I also still think it’s a huge same and hugely short-sighted that AT are no longer building the entrance at Beresford Square as part of the project.
As mentioned at the start, the Mt Eden station is going to see significant development around it, especially as much of the land right next to the station will be used in the project’s construction and able to be developed on after the tunnels are completed.
An idea of the scale of redevelopment possible in the is shown in this image below with the orange buildings the ones within the CRL designation footprint.
We’ll be seeing a lot of disruption over the next few years as the CRL is built but these are definitely exiting times for the city and even the Herald on Sunday got in behind it all with a fairly positive editorial.