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Big opportunity to participate in government housing project

Development partners are being sought to create up to 250 new dwellings in the next stage of a major government housing project underway in Northcote on Auckland’s North Shore.

Government housing agency Kāinga Ora is seeking registrations of interest for the purchase and development of three large lots of land totalling 1.3435ha, located on Lake Rd and Cadness St. They are part of Stage Five of the Kāinga Ora-managed Northcote Development project which commenced in 2016 and will deliver approximately 1,500 new dwellings comprising a mix of state and private sector housing.

Bayleys Real Estate has been appointed to market the superlots which range in size from 3,406 sq m to 5,177 sq m. Expressions of interest are being sought in the lots, either individually or any combination, by December 2.

Bayleys’ managing director Mike Bayley says there has been strong demand for private sector housing so far built and offered for sale as part of the Northcote Development. Since August last year, 169 out of 174 dwellings brought to market across four projects have sold or are under contract, including all 110 affordable KiwiBuild homes.

“This is an exciting opportunity to be part of a successful project which is clearly resonating with the market and is providing innovative solutions to Auckland’s obvious housing needs.”

Mike Bayley is marketing the superlots with Bayleys’ manager of corporate projects Gerald Rundle and Michael Nees of Bayleys Commercial North Shore.

Rundle says the lots are located on what is considered to be some of the most valuable residential land in the Northcote Development project.

“The lots have a Terrace Housing and Apartment Buildings zoning which allows for the greatest density, height and scale of development of all of the Auckland Unitary Plan’s residential zones. The zoning means apartment buildings of up to six storeys can be developed. It is anticipated that a yield range of 230 to 250 dwellings is achievable within these three superlots, providing a mix of bedroom types.”

Rundle says it is expected that a minimum of 50 per cent of the homes developed on the superlots will be in the more affordable price range, encompassing a mix of one and two bedroom dwellings built and sold at or below the KiwiBuild price points of $500,000 and $600,000 respectively. If more than one superlot is being purchased, then the 50 per cent threshold could be spread across those superlots in different configurations.

He says Kāinga Ora is also open to a development being delivered, either in part or in full, as long-term rental properties offering secure tenure, or incorporating other options such as shared equity and rent-to-buy. “They are seeking development partners experienced in building high rise apartments and committed to innovating in the delivery of affordable, warm, dry, healthy homes at scale and pace.”

The 3,406 sqm Lake Rd site for sale is located next to a Countdown supermarket and overlooking the grounds of Northcote Intermediate School out towards Rangitoto Island. It is anticipated it will be handed over for development towards the end of next year with an anticipated housing completion date of the second quarter of 2023.

The other two lots of 4,852 sq m and 5,177 sq m are located on either side of Cadness St and will be available towards the end of 2022 with a scheduled completion of date of the second quarter of 2024. All the lots will be handed over with existing buildings removed and utility services, roading and titles in place.

Michael Nees says the Northcote Development project encompasses a 23ha area and will transform this part of the suburb into a more vibrant urban neighbourhood. A total of 298 ageing state houses are being replaced by 479 new state dwellings and around 1,050 new homes are also being delivered to the open market, a good proportion of which will be available in more affordable price ranges.

The project will include a large-scale renewal of the Northcote town centre, led by Auckland Council’s urban regeneration agency Panuku Development Auckland. New shops, eateries, gathering spaces, laneways, offices and apartments are planned. Work is scheduled to begin in 2021 and will be undertaken in stages over the next seven to 10 years.

The town centre will link with a new greenway following the Awataha stream as it traverses Northcote on its way to the Waitematā Harbour. Known as Te Ara Awataha it will also be developed in stages through a partnership between Kāinga Ora, Panuku and mana whenua. It will provide a green ‘corridor’ connecting the community to local destinations, including schools, public transport stops and recreation spaces as well as the town centre, says Nees.

“It will provide residents with a pedestrian and cycle-friendly path through their neighbourhood with a number of improved and new parks and open spaces connected to the greenway. The Northcote Development masterplan also encompasses new and improved roads, community streets and laneways.”

The Northcote Development is one of six large-scale projects that Kāinga Ora is delivering across Auckland, providing a mix of state and private sector housing as well as enhanced community amenities and upgraded infrastructure. The other projects comprise 11,000 new homes in Mt Roskill and surrounding neighbourhoods, 10,500 in Glenn Innes, Pt England and Panmure, 10,000 in Mangere, 1,000 in Oranga and 4,500 at Hobsonville Point.

Kāinga Ora – Homes and Communities was established in October last year to bring together the people, capabilities and resources of Housing New Zealand, HLC (formerly the Hobsonville Land Company) and KiwiBuild.

Its goal is to achieve a more cohesive approach to supporting the Government’s priorities for housing and urban development in New Zealand and to facilitate better housing outcomes. This includes the provision of public housing and more affordable homes for people at all life stages to support their home ownership aspirations.

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