Property problems: Gated communities surprise new migrants

Q. We have recently migrated to New Zealand and are surprised to see advertisements for "gated communities". Where we come from, gated communities are in high-crime areas with armed guards and cameras. We did not realise that New Zealand had the same scale of problems to make these communities necessary. Can you explain what a gated community is in New Zealand terms?

A. The growth of gated communities has been strongest in urban centres in the United States, Southeast Asia, South Africa and parts of the world where security is at a premium because of the perceived threat from mounting crime.

It is also true that New Zealand has traditionally been seen as a very safe place, so you may think it surprising to see gated communities being developed here.

However, perhaps driven by overseas trends, there is a growing demand for housing that provides not only safety and privacy, but other features associated with gated communities elsewhere, such as high-quality leisure facilities, a pedestrian and child-friendly environment and a greater sense of community.

The term "gated community" or "enclave community" generally means that the development has a fence, wall or natural feature entirely surrounding it, with restricted access. However there can be different degrees of "gatedness" - and therefore security and access can vary.

For example, some communities may have only entrance pillars, allowing public access, while others may be fully gated with intercom or video connections to each house to enable visitors to gain authorised access. Usually security patrols are provided as part of the package.

The trend abroad has been criticised by some, who say it fails to live up to the promise of fostering real communities and creates a fortress mentality.

In New Zealand, the examples to date have tended to emphasise benefits other than security, such as privacy, on-site leisure facilities, attractive and well-maintained landscaping (without the burden of having to maintain a "lifestyle" block), being safe for children to ride bicycles, and a village atmosphere.

In fact, perhaps the most notable examples to date have been in Canterbury, where it is unlikely that security would be the top priority for prospective buyers. For example, Northbrook Waters in Rangiora, which has 52 sections over 21ha, is advertised as having a full artificial beach, speedboat and skiing facilities for residents. In the 300-section Styx Mill development near Christchurch, residents will each belong to a new country club.

In Auckland, there have been a hand-ful of gated developments recently, such as upmarket coastal sub-divisions in Gulf Harbour.

In these examples, aimed at the top end of the market, the gates are perhaps not so much to deter crime as to prevent non-residents from using the facilities provided for the owners.

It will be interesting to see if New Zealand follows the overseas trend towards larger suburban gated communities, aimed at middle-income buyers, and older urban areas "retrofitted" with gates.To an extent, this will depend on theway local councils deal with this.

In Christchurch, significant concerns have been raised about the desirability of such developments, and the council is reviewing the way its District Plan controls them. In other areas the question has yet to be specifically addressed.

From a legal perspective, an important aspect is that, because it is not possible in New Zealand to put a security gate across a public road, all the roads within gated communities must be privately owned and maintained.

This is generally done through a body corporate-type structure, which will also usually own and maintain the common areas, facilities, and services. It will also be responsible for administering the rules of the community, covering things such as building styles, noise, and traffic control.

In New Zealand, Parliament has not yet caught up with this by providing a supporting legislative framework, as many Australian states have done. Therefore, the arrangements vary widely from development to development, some using incorporated societies, and others, companies. What they have in common is the ability of the corporate entity to recover the costs of maintaining roads and other common facilities from property owners.

Gated communities can be very complex, so if you are considering buying into one we strongly recommend that you arrange for a lawyer to scrutinise the arrangements to minimise the risk of problems in future.

* Send us a commercial property question