Christchurch Development Contributions Policy 2025: What Developers Need to Know

The draft 2025 policy proposes significant updates that will impact landowners, property developers and investors across the city. It includes higher development contribution charges, revised assessment methods and changes to catchment areas that could affect the financial viability of planned and future development projects.

The draft policy is open for public consultation until 26 March 2025, and if adopted by council, it will be effective from 1 July 2025. If you’re planning a development within Christchurch City, it’s crucial to understand these changes now.

There are several important changes to be aware of, including an increase in the Development Contribution (DC) charge in most locations across Christchurch. In some areas the increase will be significant. Read on to understand more about the proposed policy and how it may affect your development plans.

Development Contributions (DC) are fees charged by local Councils throughout New Zealand to fund essential infrastructure required to support growth. Any new developments that place additional demands on existing facilities and infrastructure can be charged a Development Contribution to offset the cost of providing additional services. These contributions help ensure new residential and commercial developments have access to services like:

• Roading and transport infrastructure
• Three Waters (fresh water supply, wastewater and stormwater)
• Parks, sports facilities, libraries and community infrastructure

The fees are charged to the developer with the goal of ensuring the costs of growth are shared fairly, preventing current ratepayers bearing the full costs of new developments. It also allows Councils to plan for and support future growth, ensuring areas have the infrastructure they need when they need it.

Under the Resource Management Act, all councils are required to have a policy detailing their approach to development contributions that provides information on:

• How development contributions are set.
• How they are assessed.
• What the charges are.

Councils are required to review their DC Policy at least every three years. The current Christchurch DC policy was adopted in 2021 and is due for review.

The draft Policy 2025 is available to view on the Christchurch City Council website.

1. Higher Development Contributions Charges

Development Contribution charges will increase across most of Christchurch due to rising infrastructure costs and updated growth projections. Charges will vary based on infrastructure needs and location.

As an example, the total per Household Unit Equivalent (HUE) charge for Christchurch Central is set to rise from $8,126.76 (2021) to $29,562.70 (2025) (inclusive of GST).

2. Changes to Development Contributions Eligibility

Expiry of Existing Demand Credits

If a site has remained undeveloped for over 10 years, any existing demand credits will expire.

This is particularly relevant for properties in earthquake-affected areas where redevelopment has been delayed.

Revised Residential Unit Assessment Criteria

Small Residential Units:

The previous discount provisions for units under 100m² have been removed with all two- and three-bedroom units with gross floor areas less than 100m² being charged 1 HUE (Household Unit Equivalent) regardless of size. This is an increase in charges from the 2021 Policy, where a reduction in HUE charges was assessed in relation to floor area with units with 80m² gross floor area charged 0.8 HUE and units with 60m² gross floor area charged 0.6 HUE. However, one-bedroom units will be assessed at 0.6 HUE.

Large Residential Units:

Residential units with seven or more bedrooms will be assessed at 1.4 HUE (previously 1 HUE). This is aimed at multi-tenancy developments that place a higher demand on infrastructure.

No more Development Contributions Remissions

Previously, developers could request remissions (reductions) in "unique and compelling" circumstances. This has been removed, meaning developers will no longer be able to seek a remission of a development contribution requirement from Council.

Stormwater Infrastructure Discounts to be reduced

Stormwater contribution reductions were previously permitted in situations where the demand on Council infrastructure could be demonstrated as being significantly less for a particular development compared to an average development. In the new draft policy, discounts only apply if demand on Council infrastructure is less than 50% of the average assumed demand detailed in the policy. Multi-unit attached residential developments will no longer qualify for stormwater discounts and will pay 1 HUE per unit.

3. Infrastructure Catchment Charges

Road Network and Neighbourhood Parks

The draft policy will no longer have city-wide contributions based on development patterns but rather localised catchments to better reflect who benefits from the provision of these assets. This means developers will pay for infrastructure improvements within their immediate area rather than contributing to a broader pool.

Three Waters (Stormwater, Wastewater, and Water Supply)

Larger and fewer catchments will replace the current system to provide more flexibility in responding to urban infill growth. This aligns with intensification policies such as Plan Change 14 (PC14) and the Medium Density Residential Standards (MDRS).

4. New Fees for Development Contributions Assessments

Developers will now be charged a fee for a development contributions assessment. The exact amount will be confirmed through separate consultation but is proposed to recover a portion of the cost to administer assessments.

5. ‘Land-in-Lieu' Option Removed

Developers can no longer offer land instead of paying cash for development contributions. All land transactions accepted by Council must now be handled separately through a sale and purchase agreement or private development agreement.

These changes will impact all new subdivision consent and resource consent applications not previously received and accepted by Council for processing before 1 July 2025. If your project is already in progress or in the planning stages, here’s what you need to consider:

• Resource and subdivision consent applications received by Council after 1 July 2025 will be assessed under the new policy using new calculation methodologies and will be subject to the higher HUE contribution rates.
• If your project is in the planning stages and is likely to incur a development contribution charge, lodging your application before this date could result in significant cost savings.
• An increase in the number of consent applications is expected ahead of the 1 July 2025 policy effective date, resulting in potential delays and longer processing times.
• If you’ve already received a formal contributions assessment, ensure you pay it before it expires. Any expired assessments that require reassessment after 1 July 2025 may in some cases be reassessed under the new policy conditions.

With these changes approaching, understanding their impact on your project and planning ahead is essential.

If you are in the final stages of submitting a consent application, it may be advantageous to submit it now to avoid extended processing times and higher DC charges. For any future projects, factor in the increased contribution rates and the revised assessment criteria when assessing the financial viability of the project.

Eliot Sinclair’s planning team are abreast of the changes to the DC Policy and are available to provide advice on any potential impacts on your project. We can assist with preparing submission material for the public consultation period up to 26 March 2025.

With a team of expert planners, structural engineers and land surveying consultants working together at Eliot Sinclair we can prepare the necessary material for your resource, subdivision and building consent applications. If you’re looking to lodge a consent application, acting early could save you thousands in additional charges. Developers who will potentially be impacted by these changes should talk to us as soon as possible so we can advise and assist with the application.

Late in February Housing Minister, Chris Bishop introduced a new pre-set levy scheme to replace individually set council fees. The scheme aims to streamline funding for infrastructure while installing a regulator to prevent councils from using monopoly powers to increase levies. The announcement may significantly impact Christchurch City Council’s draft Development Contributions Policy 2025 and raises uncertainty around the proposed contribution increases.

The government’s approach signals a shift towards more flexible funding tools and could lead to changes in how infrastructure costs are recovered. With the details of the Government’s plan still to be released, it is unclear whether Christchurch City Council will need to pause work on the DC Policy, or the public consultation.

Developers should stay informed about how these policy shifts might reshape the final version of Christchurch’s contribution framework. Our planning and land surveying teams are staying updated during the transition to the new policy and any impacts the Government’s announcement may have on it. Speak to us early to get the most relevant advice on your planned development projects.