Growth is being held back by capacity constraints, leading to questions about developing a second CBD.
The claim is that "the health of New Zealand depends on the wealth of Auckland". True or not, little noticed is that Auckland's importance to securing New Zealand's high and rising living standards has grown to a new level over past six years.
Auckland's GDP per capita ($54,000 in 2015) is eight per cent higher than the rest of New Zealand, and in the year to March 2015 Auckland contributed 42 per cent of total national GDP growth -- up from 35 per cent in 2006.
According to Treasury, Auckland firms are generally more productive than those of the rest of the country. But of real significance is the fact that productivity in central Auckland's business area is 72 per cent higher than the rest of New Zealand (including wider Auckland). This suggests that growing jobs in central Auckland especially will have a bigger impact on national outcomes than elsewhere.
If you accept this, the take-home message of central Auckland's disproportionately higher productivity than the rest of New Zealand is obvious. Auckland's (and New Zealand's) future prosperity depends on its central city labour market, the firms and skills inherent in it, the pipeline of new skills from the education and migration systems, and the nature of jobs it both demands and creates.
The theory -- agglomeration economics -- is that the concentration of firms and workers in one place increases the thickness of the labour market and effectiveness of connections between firms and workers, making them and the economy more productive.
For Auckland's (and New Zealand's) future success, then, businesses and jobs in central Auckland need to be highly accessible, which in turn heightens the importance of ensuring Auckland's transport system is up to the job and property development growth isn't stifled.
The signs aren't all positive -- far from it. Auckland's population is increasing at twice the rate of the rest of New Zealand and faster than other similar sized international cities because of comparatively high birth rates and strong immigration flows. Current projections suggest that in 30 years over 80 per cent of the total working age population growth will be in Auckland.
Despite central Auckland's private sector driven building boom and the start of turning the dead-end Britomart rail station into a through station that will double services, there is compelling evidence that the central city's growth is being held back by capacity constraints. Congestion is everywhere. Office space is at a premium. Peak hour bus and train services are crammed, standing room only. And access to central Auckland by private vehicles is being actively discouraged.
One way to address the transport congestion is for residential accommodation to be significantly increased in the city centre -- "commuters" can then walk to work. True, more apartments are being built, but are not affordable options for office workers or a family lifestyle. Instead, most of the "affordable" small-sized city-centred accommodation appears to be taken by international students, an important spending (and tax-generating) group but non-contributors to increasing Auckland's high-value productivity.
No surprise, then, that there is an emerging debate around whether Auckland Council needs to become active to establish a second central business district (CBD). The new Unitary Plan's adoption of "out and up" for housing development offers developers this opportunity -- to intensify Auckland's growth of commercial activity into new and/or transformed commercial precincts closer to where people live, especially in South Auckland.
The private sector is not waiting around. To the south, business areas -- Auckland Airport, Manukau, Southdown, Ellerslie/Penrose, East Tamaki and south to Drury, Pukekohe and into northern Waikato -- are expanding and changing at a rapid rate, from industrial to commercial and with an emerging tier of professional services.
Each precinct offers a full range of commercial and business services -- professional and creative firms, smaller scale private sector training through to an expanding Manukau Institute of Technology. For many Auckland workers, central Auckland might as well be another town or city.
Over the next 30 years, two cities the size of Hamilton will have been built.
Auckland Council's recently appointed Planning Committee chair, Chris Darby, is aware of the trend.
"A strong 'city-centre' core is essential for a thriving Auckland, and some smart work is needed to unlock the congestion constraints -- there is nothing new in that."
But he insists that the commercial and residential development potential of the rest of Auckland's urban core also needs to be strongly supported by Council. He sees the task given by Mayor Phil Goff as leading the challenge to respond to Auckland's big issues of transforming public transport and addressing the housing crises (see panel story), but in a way that addresses connectivity road blocks to where people "live, learn and earn".
With three council-controlled organisations reporting to him (Panuku Development, Auckland Transport and Watercare), Darby wants to see a lot more integration through all tiers in respect of how the CCOs perform -- less silo planning and independent project delivery, and more collaboration and co-operation. The rationale is twofold -- to accelerate delivery and make better use of scarce capital.
To capture the huge growth and productive potential of South Auckland, he wants to forge a co-ordinated and accelerated agenda linking the triangle of the commercial hubs of Onehunga/Southdown, Manukau and Auckland Airport and the enveloped residential suburbs of Mangere, Otahuhu and Papatoetoe.
There is tremendous leverage when combining Panuku Development's "transform" focus on Onehunga and Manukau with the development potential of Housing New Zealand's extensive land holdings in the triangle.
Where people work, learn and recreate in the triangle should be well connected by fast and frequent public transport services, he insists.
"Getting faster momentum to convert South Auckland's economic development opportunities will be the partnership built with central government and in particular Housing New Zealand, the potential big game-changer in this part of the city."
Moving all Auckland successfully into the next stage of development requires a quantum leap in a number of areas.
For Darby this includes:
• Public transport -- peak hour Planning the next steps for our booming city trains, buses and ferries are all at capacity -- a big step up is critical. Auckland needs to be a lot more ambitious to make better use of existing transport assets, especially in peak hours.
"Motorways are congested but private vehicles are not -- most have only one person, the driver and no passengers. Incentives encouraging more efficient use of private vehicles are needed, including more T3 lanes and priority parking for High Occupancy Vehicles (HOVs) at park and ride facilities and council-controlled car parking buildings."
• "Value-add" urban developments at suburban rail and park and ride stations -- park and ride facilities at Albany, Papakura and many other suburban rail and busway stations could be expanded to include medium-rise developments incorporating retail, office space, apartments utilising shared parking.
Around these transport hubs further mixed use residential and commercial development would be encouraged.
"We are only just scratching the surface with Transit Oriented Development patterns -- it works both from a living and value for money point of view."
• Upper North Island context: To be successful as New Zealand's only international city of scale, Auckland's next urban development phase must also look at global city mega trends happening in transport and housing.
"Auckland would develop a lot differently if we had a fast train system," Darby agrees.
"A fast inter-city train like those connecting Paris and Frankfurt would allow people to work in high-value, productive jobs in central Auckland and live 120km away in Hamilton".
Commuters would get on the train, plug in their laptops and go to work for the 45-minute commute. In turn, a fast train network linking the Waikato and Bay of Plenty regions might contribute to solving Auckland's housing problems, making them more affordable and attractive to families wanting a less stressful city commute lifestyle.
"Proximity to work becomes more a question of time rather than distance with rapid mass-transit"
A fast Auckland-Waikato commuter train service is a conversation that neighbour regions have raised from time to time.
As the upper North Island closes in on being home to more than half of New Zealand's population, getting a business case together to support including a modern, rapid inter-city rail investment on the Project Auckland action agenda looks to have merit -- a work in progress for Darby to lead?
63% of commuters changed travel habits due to smart city initiative.