Christchurch Development Contributions Policy 2025: What Developers Need to Know

This policy update directly affects developers working on small parcels and infill sites in Christchurch, as development contributions (DCs) are fees charged by Christchurch City Council (CCC) to fund the infrastructure and community facilities required for growth. The 2025 policy introduces several important changes that developers need to understand.

The 2025 policy replaces the 2021 policy and contains significant updates that 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.

There are several important updates 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 updated policy and how it may affect your development plans.

Development Contributions (DC) are a way for Councils throughout New Zealand to recover the costs of new or upgraded infrastructure needed 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 Water (fresh water supply, wastewater and stormwater)
• Parks and reserves, sports facilities, libraries and community infrastructure

Development contributions ensure that the cost of meeting the increased demand is fairly shared by those creating it, rather than being placed on existing ratepayers. It also allows councils to plan for and support future growth, ensuring areas have the infrastructure they need when they need it.

In practice, this means developers must pay a charge, calculated on a per Household Unit Equivalent (HUE) basis, when they create new lots, build additional dwellings, or increase the intensity of use on a site. Charges vary depending on the type and location of the development, and are based on catchment-specific infrastructure costs.

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.

The 2025 policy introduces several important updates compared with the 2021 version. The following are the main areas of change that developers should be aware of, highlighting where the policy has shifted and what this means in practice.

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

1. Higher Development Contributions Charges

Development Contribution charges have risen across most catchments in Christchurch. The increases reflect higher infrastructure costs, slower growth projections than anticipated in the 2021 policy, and changes in development patterns.

The charge varies significantly depending on location, and the total contribution payable for a site will depend on the mix of activities (such as transport, water, wastewater, and reserves) and the catchment area it falls within.

2. Changes to Development Contributions Eligibility

Expiry of Existing Demand Credits

The policy clarifies that contributions apply when a development generates new demand on infrastructure networks. If a site has remained undeveloped, existing demand credits will be valid for 20 years, to recognise prior use of a site. This is an increase of 10 years from the proposed 2025 Policy. Credits cannot be transferred between sites (except in amalgamations) and cannot reduce contributions below zero.

Revised Residential Unit Assessment Criteria

Small Residential Units:

The previous discount provisions for units under 100m² have been removed in the adopted 2025 policy, 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.

These changes apply city wide.

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. Stormwater discounts are much more restricted under the 2025 Policy, with discounts only applying if demand on Council infrastructure is less than 50% of the average demand assumed 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 adopted 2025 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 servicing urban infill growth. This aligns with the city's intensification policies such as Plan Change 14 (PC14) and the Medium Density Residential Standards (MDRS).

4. New Fees for Development Contributions Assessments

Under the 2025 policy, Council may now levy Development Impact Fees where a development places demand on infrastructure but does not require a formal consent. This captures situations such as building consent exemptions or increased trade waste discharges. The fee is set at a level equivalent to the development contribution that would have applied if a consent had been required.

The final policy has removed the separate “assessment fee” which was proposed to recover administrative costs. The revised Development Impact Fees are linked directly to infrastructure demand rather than a flat assessment fee.

5. ‘Land-in-Lieu' Option 

The 2025 policy confirms that Council may still accept land instead of a financial contribution for reserves, provided this delivers better recreational outcomes. This option remains capped at the lesser of 7.5% of additional lot value or 20m² per new household unit. 

This is a variation from the proposed plan, which suggested removing the land-in-lieu option.

These changes will impact all new subdivision consent and resource consent applications not previously received and accepted by Council for processing before 15 September 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 15 September 2025 will be assessed under the new policy, using updated assessment methods and 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 15 September 2025 policy effective date, which may result 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 15 September 2025 may in some cases be reassessed under the new policy conditions.

With the new policy about to take effect, understanding its impact on your project and planning accordingly is essential.

If you are close to lodging a consent application, doing so before 15 September 2025 could mean your project is assessed under the current 2021 policy, potentially avoiding higher DC charges. For any projects lodged after this date, it will be important to factor in the increased contribution rates, revised assessment criteria, and updated catchment rules when assessing financial viability.

At Eliot Sinclair, our planning and surveying teams are fully abreast of the 2025 Development Contributions Policy and its implications. With a team of expert planners, structural engineers and land surveying consultants working together we can:

• Assess the likely contributions for your site under the new policy.
• Help you understand the financial implications of the new policy.
• Prepare the necessary material for your resource, subdivision, or building consent applications.

If you’re planning a development in Christchurch, now is the time to talk with us so we can help you make informed decisions and support you through the process.