Freehold and Crosslease are just two of the four types of Subdivision.
Freehold is a land totally on its own by a party while crosslease is a site commonly shared by two or more parties, with the common area (normally garden or garage) owned in an undivided share by these parties, and the houses are 'leased" on a 999 year term.
S224C is a certificate granted by Council under section 224(C) of the Resource Management Act 1991 certifying that the applicant has complied with ALL Subdivision Consent conditions (drainage, driveway, development contribution paid), it applies to both freehold and crosslease subdivision.
Without s224c, the subdivision is not completed even you have a Subdivision Consent approved and you cannot get a new title for this newly subdivided lot.
It is really up to the applicants to determine which types of subdivision they want to take in accordance with the site constraints and it does not mean crosslease subdivision now disappears.