- Kāinga Ora is selling a 275sqm plot in Auckland for $890,000, originally bought for nearly $3 million.
- Plans for a 10-storey social housing block were scrapped due to escalating costs and delays.
- The sale is part of a broader effort to upgrade and future-proof social housing across the country.
Kāinga Ora has signalled it is prepared to take a huge loss on a tiny plot of land it bought eight years ago for close to $3m.
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The Government housing agency is selling the 275sqm sloping section at 70 Upper Queen Street, in Auckland's Eden Terrace, for $890,000 after scrapping plans to build a 10-storey social housing block on it.
Bayleys listing agents Phil and Alan Haydock describe the offer as a “knock-out deal” in their listing on OneRoof.
Kāinga Ora said the site was longer financially viable for a social housing development. Photo / Supplied
The property was first listed for sale in July, but after failing to sell at tender, dropped in price from $990,000 to $940,000 and again this week to $890,000.
The agents say it could be a “strategic purchase for developers or owner-occupiers looking to design their own bespoke premises” on the mixed-use zoned site, which has an RV of $1.45m.
“A rare and affordable opportunity to secure land in one of Auckland’s most well-connected CBD fringe locations,” they say.
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Kāinga Ora's acting general manager for urban development and delivery, Nick Howcroft, said the agency bought the land when there was demand for social housing in the city centre.
It had planned to build a 10-storey social housing block comprising 25 flats, with full development plans and resource consent part of the purchase.
The site was prepared and cleared before 2020, but Covid-19 put the brakes on the project. Howcroft said subsequent consent changes, site accessibility challenges, escalating costs and delays meant the project no longer met its financial threshold for a social housing development.
Kāinga Ora sold a four-bedroom villa on Trinity Street, in Ponsonby, Auckland, for $3.4m last month. Photo / Supplied
"Since acquiring this site, we have delivered 200 social homes at our nearby Te Mātāwai complex and secured additional housing in the area. We also have other sites in the area where we can deliver further social homes more cost-effectively," he said.
"After a thorough review, selling this property is the best strategic decision for Kāinga Ora. The asking price reflects the most recent independent market valuation completed before listing it on the open market."
Howcroft said the sale of 70 Upper Queen Street created an opportunity for the market to develop much-needed housing in Auckland's CBD.
Earlier this year, the Government announced that Kāinga Ora would be selling off 900 state-owned homes.
Last month, it sold a four-bedroom villa on Trinity Street, in the trendy Auckland suburb of Ponsonby, for $3.4m.
The property hit the market in September with an RV of $3.15m – the highest for a state house - and attracted more than 50 bids at auction.
Kāinga Ora chief executive Matt Crockett said the sale of the 102-year-old villa was just one of 279 properties being sold this year as part of a nationwide effort to upgrade and future-proof social homes throughout the country.
“The $154 million we’ve gained from these sales is being reinvested into social housing – building new, warm, dry homes where they’re most needed, or completing extensive upgrades to extend the life of our existing homes.”
- 70 Upper Queen Street, Eden Terrace, Auckland, has an asking price of $890,000 plus GST if any
