Kerikeri Retirement Village acquired five sections on Hawkings Cres which are now being sold to a developer.
Kerikeri Retirement Village acquired five sections on Hawkings Cres which are now being sold to a developer.
One of Northland’s most established retirement villages has scaled back plans to build 200 new villas in Kerikeri as competition for aged care facilities and retirement village living grows.
Instead, Kerikeri Retirement Village plans to sell the land it bought on Hawkings Cres to a “community-focused developer” on the proviso they develop it as affordable rental accommodation for workers and young families.
The village has resource consent for the development plans which include 29 townhouses.
Sumpter said the purchase agreement would state the land is “kept as affordable housing for workers and their families” and that “whoever the developer is they have a social impact interest in keeping these for service workers in Kerikeri”.
“We’re hoping the right person will put their hand up.”
If not, Sumpter said, “they could go to commercial developer”.
The village, which is run by a non-profit trust, aimed to boost its [then] current 87 independent living units and 66 care beds to 300 units and 100 beds.
At the time Sumpter said it was to cater for “the silver tsunami”, caused by an ageing population combined with an influx of retirees to the Bay of Islands.
Sumpter said the village currently has 120 retirement living units and still intends to build another 80.
Though the price of the Hawkings Cres land was commercially sensitive and wasn’t currently on the open market, Sumpter said she was discussing options with various agencies and had already approached an investor.
The village envisages the homes would be rented on a long-term basis and at a more affordable price than rental properties in the area.
Three-bedroom houses in Kerikeri and Waipapa are currently listed from $650 to $800 on Trade Me.
Sumpter hoped a suitable developer would come on board to help address the “severe shortage” of accommodation in Kerikeri, though she acknowledged “the vision might not stand the test of time with whoever ultimately purchases the land”.
“But the consented plans are extremely valuable and, if we are able to sell to a community-focused developer or philanthropist, we believe it’s likely that the development will progress in line with our expectations.”
One Roof editor Owen Vaughan said the development market is tough in New Zealand now.
One Roof editor Owen Vaughan said the development market is tough in New Zealand now.
“High interest rates have made projects unaffordable for many developers.
“They have weighed in at the height of the market, when interest rates were low and money was cheap, and they’re finding themselves in a tough position.”
Vaughan said there was currently limited appetite for some bigger developments unless the numbers stacked up.
“Most developers are looking to widen the buyer pool as much as possible.
“At the end of the day, they’re going to need to sell off that stock.”
Sumpter said funds raised from the sale of the Hawkings Cres land would go back into village facilities.
The sale of the land would also include an agreement that it was not used for social housing, she said.
“We are sensitive to the community’s concerns around the potential proliferation of social housing in this area and it’s an issue we ourselves have been highly vocal on.”
Jenny Ling is a news reporter and features writer for the Northern Advocate. She has a special interest in covering roading, lifestyle, business, and animal welfare issues.
