Construction was starting on the site. Photo / Caroline Fleming
Construction was starting on the site. Photo / Caroline Fleming
Construction has finally begun on an affordable housing subdivision after a wait of more than two years.
The Kawaha Point Villas subdivision, designed to give first-home buyers housing for $450,000, has now had half a dozen buyers pull out because of the delay - making six of the plots availablefor sale.
However, the delay and inflation had pushed the retail price to $499,000.
The plans for the new three-bedroom houses were drawn up in 2017 and were expected to be built within a year.
After multiple setbacks construction is now not expected to be completed for some months.
The project hit its first roadblock when it was discovered a drain, which ran along the southwest boundary cut across the corner of the subdivision, needed a pipe installed before the council could issue the consent.
Putting in the pipe also required an easement to be added, resulting in the redesign of the area and cutting three properties from the original 29-house plan.
Eight of the units were used for Kiwibuild allocation, 12 were already sold and six were back for sale.
FHB Group managing director Rob Davies said earthworks and drainage were expected to be done over the next few months and he hoped the houses would be completed by the end of summer.
FHB Group managing director Rob Davies back in February. Photo / File
Some previous buyers had "lost patience", Davies said, but a large number of consents were needed and ground condition approval had taken far longer than expected.
There was a chance more buyers could pull out, he said, but he was confident all properties would be snapped up.
Rotorua mayor Steve Chadwick said she was pleased to hear construction was beginning on the villas.
Timing could not be better as housing availability was a real challenge for Rotorua right now, she said.
Part of the council's job was to enable more land to be opened up for residential development and it was working to see that happen as quickly as possible, she said.
"At the end of the day, we all want to see more homes being built so any delay is frustrating for all concerned."
Simon Anderson, chief executive of Realty Group, which operates Eves and Bayleys, said there was a real housing shortage crisis in Rotorua, especially in the first-home buyer market.
He said the challenge was that these properties sitting at the $499,000 range were sitting outside many first-home buyers' price ranges so it would not be fully alleviating this problem.
Harcourts sale consultant Hielke Oppers said the city was suffering from a shortage of affordable housing and needed more subdivisions designed to accommodate the first-home buyer market.
