What You Need to Know About the 2025 Christchurch DC Policy Changes
The Christchurch Development Contributions Policy is undergoing significant updates effective July 1, 2025, impacting the financial contributions required from property developers in Christchurch, New Zealand. These changes will influence the costs associated with new developments and subdivisions, reflecting the city’s evolving infrastructure needs. Drawing on the draft policy, council documentation, and more than 10 years in the planning industry, I hope that this article provides you with a comprehensive guide to the proposed changes, associated costs, and their implementation timeline. Designed for property developers and land owners who are thinking about subdividing property, it aims to clarify the policy shifts and offer actionable strategies for navigating them.
Introduction to the 2025 Christchurch DC Policy Changes
Development contributions (DCs) are fees levied on new developments to fund essential infrastructure, including roads, water supply, wastewater systems, and public parks. These contributions ensure that the costs of growth are borne by those creating additional demand. The Christchurch City Council’s 2025 policy update, effective from July 1, 2025, responds to revised growth projections and rising infrastructure expenses. This revision is highly relevant to property developers and homeowners planning subdivisions, as it directly affects project budgets and feasibility in a key New Zealand market.
Key Changes in the Christchurch Development Contributions Policy
The 2025 policy introduces several notable amendments compared to the 2021 framework. Below are the primary changes, informed by the draft policy and council consultation materials:
- Small Unit Adjustments: The discount previously applied to units under 100m² has been narrowed to one-bedroom units only, now assessed at 0.6 Household Unit Equivalent (HUE). Units with two or three bedrooms under 100m² will be charged at the full 1 HUE rate.
- Large Units: Residential properties with seven or more bedrooms will incur an additional 0.4 HUE charge (excluding stormwater contributions), reflecting their greater infrastructure impact.
- Removal of Remissions: The provision for remissions in “unique and compelling circumstances” has been eliminated, reducing flexibility for developers seeking cost relief.
- Localized Catchments: Charges will now vary by specific geographic areas—Central, East, West, North, South, Banks Peninsula, and Akaroa Harbour—aligning costs with localized growth and infrastructure requirements.
- Growth Projections: Annual growth projections have been revised downward to 0.52% over 30 years, from 2.06% in 2021. This lower forecast distributes fixed infrastructure costs across fewer new households, potentially increasing per-unit charges.
The 2025 Christchurch Development Contributions Policy introduces much more in depth changes compared to the 2021 policy. Below is a table summarizing these key updates and their implications. These updates aim to ensure equitable funding for infrastructure, though they may result in higher costs for developers and homeowners. Full details are available in the draft policy PDF here or on the Council’s consultation platform.
| Aspect | 2021 Policy Details | 2025 Proposed Changes | Implications |
|---|---|---|---|
| Small Residential Unit Adjustment | Adjustment for units <100m² GFA; e.g., 80m² pays 80% of full charge (0.8 HUE) | Adjustment applies only to one-bedroom units, assessed at 0.6 HUE for all activities | Two- and three-bedroom units <100m² lose adjustment, now charged 1 HUE; impacts townhouse developers |
| Large Residential Unit Adjustment | No adjustment; all units >100m² assessed at 1 HUE | Units with seven or more bedrooms charged an additional 0.4 HUE (excluding stormwater), based on increased demand | Units with ≥7 bedrooms incur higher charges; expected to affect few developments annually |
| Remission Provision | Allows remission in “unique and compelling circumstances” | Remission provision removed; Council retains discretion under LGA Section 80 | Developers cannot seek remission under policy, reducing flexibility |
| Catchments (Neighbourhood Parks, Road Network) | Six road network and five neighbourhood parks catchments, using a concentric approach | Transition to localized catchments: Central, East, West, North, South, Banks Peninsula | Charges vary by location, reflecting capital costs and growth projections |
| Catchments (Three Waters) | Water supply by pressure zones/scheme; wastewater by pump stations/scheme; stormwater by watershed | Consolidation into larger, fewer catchments for flexibility with infill growth | Charges vary by location, influenced by capital costs and growth projections |
| Stormwater Reductions | Discounts for on-site mitigation, regardless of scale | Discounts only for significant mitigation (<50% average demand), aligning with other activities | Developers below 50% threshold pay full charges; impacts infill developments |
| Multi-Unit Adjustment for Stormwater | Discounts for attached two or more residential units | Adjustment removed; updated average Impervious Surface Area (ISA) per unit; charge of 1 HUE per unit (except one-bedroom units at 0.6 HUE) | Attached multi-unit developments lose discount, now pay 1 HUE per unit |
| Fee for Assessments | No specific fee; funded by general rates | Introduction of a fee at invoicing; amount to be consulted in Annual Plan/LTP | Developers incur additional fee; exact amount pending consultation |
| Land in Lieu of Cash | Allowed in limited circumstances for reserves | Provision removed; land transactions to be handled via separate agreements | Developers must pay full contribution; land transactions managed separately |
| HUE Multipliers for Transport | Zone-based assessment | Shift to activity-based assessment, standardizing with other NZ councils | Transport multipliers vary by zone and land use |
| Existing Demand Credits | Expire after 10 years | Retention of 10-year expiration, balancing infrastructure capacity and fairness | Credits expire after 10 years; e.g., $24M expired in central city based on new HUE charges |
| Growth Projections | 2.06% annual growth over 30 years, post-earthquake high projections | Revised to 0.52% annual growth over 30 years, reflecting recent patterns | Higher Development Contributions due to fewer households sharing increased capital costs |
How Fees Are Calculated in 2025
Development contributions are calculated based on the Household Unit Equivalent (HUE), which measures the infrastructure demand of a typical residential dwelling. The 2025 Development Contribution Policy establishes varying charges by catchment area, reflecting localized cost differences. Below are the proposed rates (inclusive of GST) from the draft policy:
| Catchment | Charge per HUE |
| Central | $29,562.70 |
| East | $29,273.25 |
| South | $32,031.11 |
| West | $37,200.54 |
| North | $37,166.72 |
| Banks Peninsula | $23,635.66 |
| Akaroa Harbour | $44,083.56 |
For instance, a development in the West replacing one existing home with three new units would incur charges for two additional HUEs (after crediting the existing unit), totaling 2 x $37,200.54 = $74,401.08. In contrast, the 2021 rate for Central Christchurch was approximately $8,126.76 per HUE, indicating a substantial increase. This rise stems from updated demand assessments and the lower growth forecast, which spreads costs over fewer units.
Impact on Property Developers and Homeowners
The policy changes will have several implications for those involved in property development and subdivision:
- Increased Costs: Charges ranging from $23,635.66 in Banks Peninsula to $44,083.56 in Akaroa Harbour could challenge project viability, particularly in higher-cost areas.
- Geographic Variation: Developments in the West or North face fees exceeding $37,000 per HUE, while Central Christchurch is comparatively lower at $29,562.70, requiring location-specific cost assessments.
- Subdivision Considerations: Homeowners subdividing a property may encounter additional costs of $30,000–$40,000 per new lot, potentially increasing total expenses by 20–30% compared to previous rates.
- Planning Adjustments: Developers may prioritize one-bedroom units to leverage the 0.6 HUE discount or reconsider projects in high-cost catchments to maintain profitability.
The Council views these adjustments as a necessary reflection of infrastructure demands, though they may prompt some to reassess project feasibility.
How to Navigate the New Policy as a Developer or Homeowner
To effectively manage these changes, consider the following strategies:
- Early Consultation: Contact the Christchurch City Council at the planning stage to confirm charges specific to your site. Reach them at developmentcontributions@ccc.govt.nz or call 03 941 8999.
- Cost Estimation: Utilize the Council’s online DC estimator, available on their website, to calculate preliminary charges based on your property’s location and development scope.
- Design Optimization: Incorporate one-bedroom units where feasible to benefit from the 0.6 HUE rate, or implement significant stormwater mitigation to potentially reduce contributions if demand falls below 50% of the average.
- Financial Planning: Account for the updated rates and a potential assessment fee (to be finalized in the Annual Plan) in your project budget to avoid unexpected shortfalls.
- Ongoing Monitoring: Stay informed of any policy refinements through the Council’s updates at letstalk.ccc.govt.nz, ensuring compliance as the changes take effect.
These steps, supported by industry commentary from Eliot Sinclair, emphasize proactive planning and accurate cost forecasting.
What’s Next for Christchurch Infrastructure Funding?
The 2025 policy aligns with the Council’s broader Long-Term Plan, balancing current infrastructure investments with future needs. The revised 0.52% annual growth projection over 30 years underscores a cautious approach, distributing costs across a smaller base of new households. Development contributions complement other funding sources, such as rates, to support essential services like water, transport, and community facilities. Should growth trends shift, the Council may revisit the policy in its next triennial review, making it prudent for stakeholders to monitor future announcements.
Conclusion
The Christchurch Development Contribution Policy changes, effective July 1, 2025, mark a significant evolution in how infrastructure growth is funded. With charges ranging from $23,635.66 to $44,083.56 per HUE and reduced flexibility, developers and homeowners must adapt to higher costs and stricter guidelines. By understanding these updates and planning strategically, you can mitigate their impact and ensure project success.
If you’re new to development or this is your first project, check out Understanding Council Guidelines: What Your Local Council Requires to explore further resources or Get in Touch and let’s have a chat to see if we can help you navigate these changes. Staying informed and proactive is key to thriving under this new framework. and we’re here to help at LG Consulting.
