Five things we’d want to know before buying development land in the Upper Clutha

A great view doesn’t necessarily make a great development site.

Across Wānaka and the Upper Clutha, there are some extraordinary parcels of land. But beyond location, size and price there are other questions that can make or break a development. Planning provisions, infrastructure capacity, natural hazards, ground conditions and environmental constraints can all affect what can be built, how much it will cost and how long it might take. And, unfortunately, some of the most expensive problems are only discovered after the land has changed hands.

We’ve worked across the region for more than 40 years. If we were sitting down with a client who was considering developing a piece in the Upper Clutha, these are just five questions we’d want to help answer early.

1. What can you actually do with the land?

The first question sounds obvious, but it goes well beyond checking the zoning.

What is realistically achievable on this particular site?

The planning framework is the starting point, but zoning alone won’t tell you what is achievable on a particular site. Things like site-specific constraints, overlays, landscape considerations, natural hazards, access requirements, neighbouring activities and environmental values can all influence the potential of a development.

There is also a difference between what might theoretically be possible, and what is commercially sensible to pursue. Therefore, before making assumptions about return or the likely outcome of a development, you’d want planners, surveyors and engineers to look at the site together. That early work can help answer one of the most important questions in any land acquisition: Does the opportunity you think you're buying, actually exist?

2. Can it be serviced, and what will that cost?

A site may look ideal on a plan, but servicing it can tell a very different story.

Where will drinking water come from? Where does wastewater go? How will stormwater be managed? Is there sufficient capacity in existing infrastructure, or will upgrades or entirely new solutions be required? What about power, telecommunications and transport connections?

For larger developments, infrastructure requirements can be a significant proportion of a projects overall cost. Distance from existing networks, capacity constraints or the need for off-site works have the potential to change the economics of a project. This is one area where doing more work upfront can quickly pay for itself.

It's better to identify a major servicing constraint during due diligence than after a purchase has been made, and a development plan built around assumptions aren’t achievable.

3. What does the land tell us?

The mountains and landscapes that make the Upper Clutha such an appealing place to live can also create some interesting engineering conditions. This includes the topography, soil and ground conditions, groundwater, slope stability and the geological history of the proposed development site.

Understanding these conditions early can shape earthworks and foundation design to road layouts, retaining structures, stormwater management and ultimately development yield. It can also reveal opportunities.

Understanding the land is not only about identifying problems. It allows engineers, surveyors and planners to work with the natural characteristics of the site. That can support better outcomes and possibly also reduce construction costs.

4. What happens when conditions aren't perfect?

Development potential shouldn't be based solely on the “sunny day” version of a site. In the Upper Clutha, taking a broader resilience lens is important where climate, topography and natural hazards need to be considered alongside the increasing value and intensity of development. This means gaining an understanding of what would likely happen during significant rainfall, whether there are flood or erosion hazards, how any slopes would behave, and whether access would remain resilient during extreme conditions.

The question isn't whether every conceivable risk can be eliminated as it simply isn’t possible. The question is whether the risks are understood early enough to make good decisions about them.

Sometimes a constraint can be engineered around relatively easily, other times it can significantly change the development proposition. Either way, it's better to know before buying.

5. What are we missing?

This might be the most valuable question of all.

Land development is interconnected. A planning decision can affect engineering. Earthworks can have environmental implications. Stormwater solutions can influence layout and yield. Ground conditions can change infrastructure costs. Access requirements can alter the entire design.

Looking at each discipline separately can mean opportunities, and problems, fall between the gaps. That's why we'd encourage developers to bring the right people around the table early.

• A planner may see one issue.
• A geotechnical engineer another.
• A surveyor may spot an opportunity to configure the site differently.
• A civil engineer may identify that a proposed layout creates an unnecessarily expensive servicing solution.
• An environmental specialist may identify a constraint, or an opportunity to enhance a natural feature and make it part of the development.

The value isn't simply having five different reports. The value comes from having those disciplines talking to each other before any big decisions are made.

Due diligence is cheaper than redesign

There will always be uncertainty in property development. However, doing your due diligence will help you understand enough about a site to be able to make informed commercial decisions.

For us, that means asking these questions early:

• What can we build?
• Can we service it?
• What's happening beneath it?
• What are the risks?
• And what haven't we thought about yet?

The answers to these sometimes reinforce the investment case, or they might suggest the development needs to look different. Occasionally, they might tell you that the best decision you can make is not to buy the land at all.

After more than 90 years working across the South Island, we've learned the importance of understanding a site properly, right at the beginning, can save a significant amount of time, money and frustration later.

Our Wānaka office gives us an even stronger base from which to bring that experience together locally, across planning, surveying, civil, structural and geotechnical engineering, environmental science and geospatial services. Because when it comes to development land, you're buying its opportunities, its constraints and everything you don't know about it yet.