PHOTO: Kāinga Ora. FILE
Future Uncertain for Kāinga Ora’s Major Wellington Housing Project
The future of one of Kāinga Ora’s largest projects, the 301-house development on the former Arlington Apartments site in Mt Cook, Wellington, remains uncertain, according to a OneRoof report.
The development was initially aimed at alleviating Wellington’s housing shortage by providing new homes for approximately 900 people at a cost of $296 million.
OneRoof reports that Kāinga Ora has disclosed that 60% (172 of 284) of the consented but uncontracted projects planned for completion by June 30, 2025, will no longer proceed. A comprehensive assessment revealed these projects did not meet the Government’s tightened criteria.
The social housing projects now on hold would have added an additional 1019 units and were promoted by the Labour Government as part of the solution to the country’s housing crisis. As a result, only 546 out of the 1565 consented but uncontracted homes (35%) scheduled for the first half of 2025 will be built.
Community Housing Providers may help fill the gap, with $140 million allocated for 1500 new units.
Housing Minister Chris Bishop, in a statement to OneRoof, highlighted that Kāinga Ora accounts for around 3% of New Zealand’s houses and is set to deliver about 2600 social homes over the next two years. Many of these homes were already under contract or in development before the government’s review.
Bishop emphasized that the decision on which specific projects Kāinga Ora proceeded with was an operational matter for the agency. “At any point in time, there will be a range of projects being re-phased, paused, or not proceeding due to various factors,” he said.
NZ Certified Builders Association chief executive Malcolm Fleming noted the significant impact on the building industry in 2024 due to Kāinga Ora putting numerous housing projects on hold. “It has a significant ripple effect through the industry, affecting not just builders but also designers and architects,” he said.