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Housing New Zealand is to sell nearly $9 million of state homes in swanky Auckland suburbs - but cannot sell other million-dollar properties until the tenants move out.
The Herald on Sunday can reveal that HNZ plans to sell seven properties - each worth more than $1m - but needs Cabinet permission after strict rules about selling Crown property were introduced this year.
Housing New Zealand has confirmed the sale of four houses in Orakei, and three others in Freemans Bay, St Heliers and Herne Bay for a total of $8.6m. A Herne Bay home was sold in July for $800,000.
But the National Party wants more million-dollar homes sold so cheaper houses can be bought to ease the city's state housing shortage.
Housing spokesman Phil Heatley said it was "a joke" that million-dollar state homes could not be sold until the tenants moved out, including $2m properties in Glen Innes and Orakei.
"Any policy to sell these multimillion-dollar state homes when they become vacant is meaningless."
Heatley said the top four state houses were worth $6.3m and could buy 16 state houses at average Auckland prices, to cut the waiting list of 11,000 nationwide. "That's 12 families off the waiting list for a start."
Housing Minister Chris Carter introduced a policy last year, to assess whether the 141 state homes worth more than $700,000 should be kept, sold or redeveloped to build more homes on the land when the existing tenants left.
Gary Anaru, Housing New Zealand assets general manager, said selling the valuable properties needed to be balanced against the risk of buying more homes in poorer areas.
"If you sell all state homes in high-value areas and buy where land is cheapest, you end up concentrating all state homes in particular areas, which is not ideal for the community," Anaru said.
Two years ago the Herald on Sunday revealed a three-bedroom property in Takitimu St, Orakei, with sweeping views of the Waitemata Harbour, was the most expensive state home, worth $1.2m.
However, Housing New Zealand would not reveal if the home was one of the properties now up for sale.
A property in Glen Innes has since overtaken it as the most valuable state home, and the first to top $2m.
The most any tenant pays for one of the top 10 most valuable state properties is $84 a week.
Tenants in one Glen Innes house - worth $820,000 three years ago - are paying just $34 a week.
Some of the tenancies are 35 years old, although the average stay is seven years.
All of the top 10 properties skyrocketed in value during the property boom, as the houses were on large sections, often with sea views, in more affluent suburbs.
One of the homes not for sale is a $2m property in Kupe St, Orakei, with sweeping views of the Waitemata Harbour.
Case study: Weekly rent of $54
A sickness beneficiary is paying only $4 a week to live in a million-dollar state property with Sky TV in Remuera.
For 11 years, Carolyne Pickup has paid $54 weekly rent to live in the Hapua St house but a boarder - the daughter of a friend - now chips in $50 each week.
A three-year-old capital valuation shows the property is worth $790,000, the house only $130,000, because the quarter-acre section is considered such prime real estate.
Its value now is expected to be above $1 million.
Housing NZ tried to sell the property three years ago because it was so valuable, says Pickup, and tried to move her to a "hovel" in Glen Innes.
But Pickup, who has a taxpayer-funded cleaner and helper to mow the lawns, refused because the house has been modified to accommodate her disabilities.
"If they told me to move, I'd just laugh at them. I'm not going anywhere," Pickup says.
Housing NZ rules state tenants can have one boarder to help pay the rent. Any more than that, and the rent will go up.
