A strategically positioned development site with three street frontages close to Wellington’s Basin Reserve is for sale, giving developers access to a prime opportunity as the property market recalibrates.

The 2,016sqm parcel of flat land at 28 Adelaide Road, Mount Cook was purchased in 2022 as part of housing agency Kāinga Ora’s urban development programme. The site is now being divested and given its City Centre zoning and 42-metre height overlay, agents say the vacant block provides a development-ready option for entities looking to position themselves ahead of the next real estate cycle.

Bayleys Wellington Commercial has been appointed to market the land, with agents Mark Walker, Sarah Lyford, and Mark Hourigan taking the property through a tender campaign closing 13th August.

The site is positioned within a growth corridor earmarked for urban intensification, aligning with Wellington's identified future housing and infrastructure needs, says Walker.

“Location-wise, this site is compelling and with triple street frontage to Adelaide Road, Douglas Street, and Myrtle Crescent there’s inherent flexibility around design, density and housing typology.

“The land has a northerly aspect which is always desirable for residential projects, and with more than 2,000sqm and a maximum height limit of 42.5 metres the site offers a blank canvas for a development with true scale.

“It is widely documented that Wellington does need more housing stock and with economic fundamentals and construction costs slowly coming back into line, we expect good interest in this site.”

Acknowledging that the development market has had its challenges in recent years, Walker says it is now warming up, with developers actively looking to position themselves in front of the anticipated curve.

“The recent sale of land and buildings associated with the former Helen Lowry Hall of Residence in Blakey Avenue, Karori is evidence that development entities are back in the market scoping opportunities,” he says.

“We received nine offers on that property, with five of those from bona fide developers wishing to secure a well-positioned site that could be optimised with residential intensification.

“Elsewhere in Adelaide Road, developer Gibbons Co. has acquired the former Tip Top bread factory site from Ryman Healthcare, who in turn had purchased it from Foodstuffs, with pundits agreeing that higher density residential development is the likely best use for land in this area.”

The site is in close proximity to Wellington Hospital, the Massey University campus, the CBD, and major public transport links.

“Adelaide Road is an active public transport corridor, and the subject site is within walking and cycling distance to key city destinations making it ideal for a residential or mixed-use development,” says Lyford.

“Higher density living can take many forms, and there are some innovative examples being rolled out around New Zealand.

“Given it’s less than a 10-minute walk to the hospital, there would be an argument for a thoughtfully planned build-to-rent project on this Adelaide Road land that could provide secure, modern rental accommodation for medical and support staff.

“Internationally, the build-to-rent model is gaining momentum and has been touted as a way to boost this country’s housing supply.”