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NZ Houses will be affordable, developers say

Property Here - Friday, June 28, 2013

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The Hobsonville Point housing development located at the old Hobsonville Air Force Base in West Auckland. Photo / Dean Purcell
The Hobsonville Point housing development located at the old Hobsonville Air Force Base in West Auckland. Photo / Dean Purcell

The company in charge of one of the country's largest housing projects is adamant that at least 20 per cent of the properties there will be affordable to everyday New Zealanders.

The Crown-owned entity leading the development, Hobsonville Land Company, today announced that five large sites at Hobsonville Point in north-west Auckland were on the market for the second phase of the development.

The five blocks, totalling 7.4 hectares, range in size from a 3600 square metre site that includes the historic Mill House, to a bare 3.6-hectare block.

Combined, the blocks have the potential to accommodate between 144 and 278 new dwellings.

The first phase of development is already under way, with about 100 dwellings already occupied, and another 100 currently under construction.

Hobsonville Land Company commercial manager Mark Fraser said many of the houses would be affordable to everyday New Zealanders, with a Government requirement that 20 per cent of them cost under $485,000.

"We're looking at delivering that 20 per cent, on average, across the whole site,'' he said.

The builders and developers interested in purchasing the latest blocks of land would have to submit proposals on how they would create affordable housing.

"The percentages might vary a bit but it's certainly a requirement."

About 25 per cent of the dwellings sold in the first phase of the development had gone for between about $350,000 to $485,000.

The median house price point was between $600,000 and $650,000 and the most expensive houses had gone for upwards of $800,000.

"It's quite reflective of the general Auckland market," Mr Fraser said.

Bayleys Real Estate is responsible for marketing the five new residential blocks through a registration of interest process which closes on August 8.

Bayleys salesman Michael Pleciak said that by offering the latest section of land in five parcels, smaller developers would have an opportunity to compete to be part of the development.

"The five parcels can be tendered for in any number of combinations. For example, one developer could bid for all five blocks, or five developers might each tender for one," he said.

"The exceptional demand for sites within the first phase of residential development at Hobsonville Point gives confidence to developers of the second phase that there is substantial on-going demand for housing stock in the community.''

He said construction of homes in the second phase could begin by 2015.

When completed, Hobsonville Point will contain up to 3000 residential dwellings for about 8000 people.

Mr Fraser estimated it would take 10-15 years to complete.