The Role of financial institutions, property developers and contractors in central Wellington's office development, 1958-1988

Abstract

Large scale central city office development has been a feature common to many capitalist cities in the developed world over the last thirty years. Similar development has occurred in New Zealand's largest cities most notably Auckland and Wellington. As yet however little detailed research has been undertaken in this area. The objectives of this study are to describe the office development that has occurred in central Wellington since the late 1950's and to identify factors important in determining the course of that development. Evaluation of the literature stressed the part played by property developers, construction companies and financial institutions and therefore emphasis was placed upon the role of these three agents. Evaluation of their role was undertaken by a detailed analysis of the development, funding and ownership characteristics of 173 office buildings built in central Wellington in the period 1958 to 1988. Four main periods or cycles of development were identified. They were from 1958-1970, 1971-1977, 1978-1983 and from 1984-1988. Each cycle was characterised by an increased level and scale of development and specific interaction between the three main agents. The increased level and scale of development over time was linked to the ongoing growth in user demand and the availability of development finance over time. The role of and relations between the three main agents determined generally by evolving economic circumstances and more specifically by the availability of finance over time. The role of central government was also identified as important through government building programming and general monetary policy which has over time acted to restrict the availability of finance and thus generally dampen overall level of development.