Aerial view of St John's site cleared of buildings. Photo / Wellington City Council
Aerial view of St John's site cleared of buildings. Photo / Wellington City Council
Rising construction costs have rendered a significant Karori housing development unfeasible.
In December 2021, Wellington City Council announced two developers were planning to do-up the vacant plot of land on the corner of Karori Rd and Campbell St, on the St John’s Church site.
Now, years later, Voxell Architecture & Faisandier Group have been forced to pull the plug on plans to deliver 40 one-bedroom and two-bedroom units in the desolate site.
A statement from Wellington City Council details inflationary pains in the sector are behind the move to axe the development.
A spokesperson said “the dynamics of the residential housing market have changed materially since then, with construction costs increasing significantly and interest rates rising”.
Council decided to terminate the agreement set in 2021 due to these difficulties making developers “unable to adapt the current contract to the prevailing challenges”.
The Karori Residents’ Association isn’t happy to see the plans axed.
Chairwoman Andrea Skews said the community would like to see something done with the space, “rather than it sitting there as a dead piece of land that’s growing weeds and gathering dust and rubble”.
She said there has been a lot of support for the development from locals.
Back in 2021, then-Mayor Andy Foster said the plans would “bring additional life and vibrancy” to the suburb.
Sam Faisandier (Faisandier Group); then-Mayor Andy Foster; Zak Kljakovic (Voxell) announcing the two development partners, 2021. Photo / Wellington City Council
Local councillor Diane Calvert told NZME she was “disappointed” to hear the development would not be going ahead as planned.
“This site has been vacant for a number of years now, so everyone was excited for something to be built.”
Calvert acknowledged difficulties the building sector was facing.
“Construction costs have risen and it’s not as easy to build.”
A Wellington City Council spokesperson said workers are investigating future opportunities for the site, stating they’ll work with the community on a temporary option.
“The council is committed to achieving an outcome for the site that will enliven the Karori Town Centre and include affordable housing options,” WCC said in a statement.
Skews said Karori locals would like to see something pop up on the site, even if it is a temporary option.
“There has been lots of suggestions [...] One thing has been a farmers market there in the weekend. I think it could be used for multiple things,” she told NZME.
Calvert wants the next option to include car parks, to make the site more appealing to prospective buyers.
She claimed it was “unusual” to offer up a large residential development “without an off-street car park”.
“If we can be flexible and open to that, I’m sure we will see some development in the future,” she told NZME.
Azaria Howell is a Wellington-based multimedia reporter with an eye across the region. She joined NZME in 2022 and has a keen interest in city council decisions, social housing, and transport.
