New Zealand companies hoping for a piece of the new Government-backed housing projects in Auckland might be edged out by Australian firms.
Four sites across the city have launched Housing Minister Nick Smith's new initiative to properly utilise vacant government plots.
Around 600 homes are planned for 30 hectares of Crown land which has been opened up for affordable housing development in Auckland.
In order to get the cheapest price, Dr Smith believes companies across the ditch might be picked over their Kiwi counterparts.
"One of the difficulties we have in the New Zealand housing market is too much of our homes are built by bespoke small companies. We want more scale which is why we have been openly inviting Australian companies to participate in this competitive process," Dr Smith says.
"My view is the New Zealand market is sufficiently small when we've got the levels of pressure on housing that we are inevitably going to need both overseas capital and overseas skills to get the houses built for Auckland."
He has no difficulties with going offshore for developers, because he wants best value for money.
The land opened up today only represents 6 percent of the 500 hectares earmarked for development.
"I think they are four pretty sensible sites, I think they show what's possible, they show the level of variation between central city sites as compared to those more on the urban fringes," Dr Smith says.
The sites include 10 hectares in Massey East owned by the Education Ministry, nearly 18 hectares near Whenuapai Air Base owned by the NZ Transport Authority (NZTA).
The other two are much smaller - a one-and-a-half hectare plot by the new Manukau train station, and less than half-a-hectare next to the train line in Avondale, also owned by NZTA.
Dr Smith hopes to have the Massey site, which was earmarked for a new high school before another location was found, signed off for development by the end of October with the first of the 200 homes by late 2016. The site already has access to waste and water infrastructure.
"The next steps with these sites will be to assess their commercial viability relative to their zoning and infrastructure requirement," Dr Smith says.
The Government says some Auckland parks and reserves will also be turned into housing, but it is promising better overall public spaces.
Dr Smith caved to pressure today, hiring a minibus to show reporters which vacant Crown sections in Auckland should be turned into housing and dispelling myths about the Government's plan.
"I was concerned some media were heading down a channel of threatening Aucklanders that their favourite playing park was going to be ripped up as part of the Government's desire to build more housing – no that's not occurring.
There are some examples where it does make sense to rejig reserves and end up with better amenities."
Dr Smith has been under fire from Labour housing spokesperson Phil Twyford since his plans were unveiled prematurely before the Budget last week.
But it wasn't Mr Twyford who forced Dr Smith to hastily organise the tour - it was 3 News reporter Brook Sabin.
"Brook challenged me and said 'show me the land'," says Dr Smith. "He claimed we were inappropriately building housing on reserve land and I said 'look, let me take you to some other sites in Auckland', and it was an opportunity rather than to answer questions in Parliament."
The tour included already announced projects, as well as new developments unveiled this afternoon.
Dr Smith says the four plots total around 30 hectares, out of a possible 500 hectares earmarked by his ministry.
"They've done that number on the basis of average sampling, and then what they're doing is progressively working with agencies what sites are suitable and we're releasing the first four sites and 30 hectares today."
Among the land shown to reporters today was the McLennan development on former Defence Force land in Papakura, with 600 homes being built on the site and managed by Housing New Zealand (HNZ), which is releasing a number of "super-lots" defined as between 20 to 40 sections.
"The first requirement is that 15 percent of the homes here are for social housing providers. HNZ might retain those 90 homes or onsell them to social housing providers that are wanting to have a presence in Papakura."
All the remaining homes are required to be sold to owner-occupiers, not investors.
Another minimum of 15 percent must be starter homes which fit in the Government's HomeStart programme bracket.
Dr Smith expects 40 homes to be completed this year, with another 100 under construction by this time next year and the rest over the next four years.
He refutes claims the Government's plan to open Crown land for development was "cooked up in the last two weeks".
Officials proposed in December to follow the Christchurch model of releasing Crown land for housing, he said.
Meanwhile, officials will be looking at other areas of Crown-owned land which may be suitable for housing.
3 News / RadioLIVE
source: newshub archive
