State house worth $1 million

Tenants of a million-dollar state house with sweeping sea views across Auckland Harbour are paying just $75 a week rent.

The three-bedroom home - in the exclusive seaside suburb of Orakei - is one of 10 Housing New Zealand properties in Auckland worth more than $800,000.

The opposition says that given Auckland's state housing shortage it is madness holding on to properties worth nearly $9 million when they could be sold and the money used to buy at least 40 cheaper state homes.

Housing Minister Steve Maharey confirmed the Government was considering several options for the high-priced state houses, including selling them or putting more houses on the sections. "When we quit stock we lose land and we would never be able to buy in these places again," Mr Maharey said.

It was Government policy to have state houses scattered and not just in lower-cost areas, he said.

"If we were to leave the area, we couldn't house low income people in these areas and that is an issue we would not like to see."

Meanwhile, of the top 10 most expensive state properties, the most any tenant is paying is $84 a week. Tenants in one Glen Innes house - worth $820,000 - are paying just $34 a week. Some of the tenancies have lasted 35 years.

Taxpayers pay $366 million a year to make up the difference between income-related rent, taken from tenants, and market rent.

National's housing spokesman David Carter said keeping the properties made no sense. "The Government policy of managing the state housing stock is stupid," he said. "They would be far better selling the expensive houses and buying modern houses." Mr Carter stressed he was against creating ghettos by buying land in poorer areas in Auckland, but said state houses worth around $1 million were unacceptable. "You could buy four houses in decent areas."

The woman living in the most expensive state house - worth $88,000 on land valued at $1 million - had been there five years and said if the property was sold, she would have to be relocated in the same area. "My daughter goes to Orakei Primary, so we would need somewhere else in Orakei."

With 6525 people on the waiting list for state houses in Auckland, Mr Carter said selling the top 10 most expensive state houses would benefit at least 40 families. He said many of the houses - some are more than 40 years old - were substandard and needed replacing anyway.


- HERALD ON SUNDAY