Russell Lund. PHOTO: ODT FILES Building permits in South Dunedin have plummeted more than 80% amid fears the impact of flooding has caught up with the low-lying suburb. Dunedin City Council data shows the number of new units granted in the area had been steadily climbing since 2020, but tumbled from 127 in 2024 to 20 in 2025 — an 84% reduction. The figures were presented at a workshop last week reviewing district plan natural hazard provisions for South Dunedin. Staff said the suburb recorded a ‘‘significant decline’’ in permits, while figures for the wider city declined ‘‘a bit’’. Some councillors looked to scope out reasons for the drop in South Dunedin. Cr Russell Lund said he doubted there would be any uptick in multi-unit development for the area. ‘‘Do you not think possibly the horse has bolted, as you say, the demand has dropped away dramatically, and it will be because of the negative publicity around the flooding, around the long-term prospects of South Dunedin?’’ He also believed the council’s interpretation of rules on potential contamination of soil from historical use of lead paint limited development. Cr Jo Galer also asked if the change corresponded to significant flooding of South Dunedin in 2024, while Deputy Mayor Cherry Lucas asked if well-suited sections had already been developed. Planning team leader Emma Christmas said it appeared hazard risk was a factor, although she could not say how large. ‘‘We have talked to a number of developers who develop multi-unit housing in that area, and they have said that the hazard risk to them often puts them off developing in that area.’’ The review at the centre of the workshop found the council’s present planning provision was not appropriately managing risk level in the area. ‘‘It represents low risk, whereas risk is now shown to be significant across much of the flat area of South Dunedin over the long term,’’ senior council planner Dr Katie James said. Councillors will consider two planning measures to manage hazard risk in the suburb at a council meeting next week. The recommended option proposes the council manage risk through a recently-added section of the Resource Management Act. The risk could also be managed through a plan change to the district plan — natural hazards plan changes are exempt from the government’s Plan Stop ahead of resource management reform. Cr Lund said a public announcement was expected in the coming week on the South Dunedin Future programme — joint work between the Otago Regional Council and city council to develop a long-term climate adaptation master plan for the area. ‘‘Can I mention that or not?’’ he asked. Dunedin Mayor Sophie Barker said the matter still had to be ratified and asked Cr Lund to stick to the workshop material. Cr Andrew Simms asked how the hazard review and any subsequent changes impacted long-term planning for the suburb. Ms Christmas said planning rules were required to reflect the hazard risk of ‘‘today’s’’ known environment. ‘‘Once the [South Dunedin Future] preferred option is known and it’s funded and it starts to be implemented then those planning rules may no longer be appropriate,’’ she said. ‘‘At that point we would change them again.’’ Councillors considered shortlisted approaches for the future programme behind closed doors in March, which are due to be shared with the community. When asked yesterday, the city council made no comment on a possible announcement. ruby.shaw@odt.co.nz
