An artist's impression of the layout of the duplexes and stand-alone homes. Image / David Duggan
An artist's impression of the layout of the duplexes and stand-alone homes. Image / David Duggan
A new type of housing development is on its way to Taupō.
The new 15-lot development on Māori land at Parawera, Acacia Bay is fresh to the market. For $455,000, buyers get a two-bedroom 76sq m home and have exclusive use of the 270sq m to 300sq m section thehome sits on.
The developer, David Duggan, 69, has a lifetime of architecture behind him and moved to New Zealand nine years ago as his New Zealand-born wife, Debbie, wanted to come home after 40 years in London and the Middle East. Feeling he was too young to retire, he joined an investment group in Auckland and three years ago the wheels began turning on the affordable homes now selling at Parawera Bay.
He says the investors would meet, and the aim was to put together a commercial development that was both sustainable and affordable. Members of the group acknowledged the need to work together to address the housing crisis.
"There is no need for high-risk development with high rewards when you can do something affordable that is also profitable."
Parawera developers Debbie and Dave Duggan on Waiheke Island, 2015. Photo / Duggan Family
He says three years ago you could realistically buy a home in Acacia Bay for around $360,000.
"But not now. The housing crisis in this country is absolutely dreadful. It's much worse than the UK."
Taupō MP Louise Upston, who cut the ribbon at last week's official opening, said the developer had been incredibly tenacious in dealing with obstacles to the project.
"These homes tick so many boxes. They're affordable, they have two bedrooms, and there is a nice community feeling."
Figures provided by the Ministry of Social Development show 490 emergency housing grants were made in the Taupō District for the quarter ending March 2021, down from the December 2020 quarter when 500 grants were made.
Upston says the current housing crisis justifies certain rules being put aside temporarily and says "we need to be bold" at a local council level and at a national level.
She said it was frustrating that there was so much bureaucracy in the way of developers who were trying to meet a demand for smaller and affordable homes.
"We've got to look at the current rules around new builds and see if they are preventing people from accessing housing. We need to ask, is this regulation fit for purpose or is it a barrier?"
Taupō MP Louise Upston, May 2021. Photo / File
Landowner Hiruharama Ponui Inc spokesman Dominic Bowden said a karakia at the ribbon-cutting ceremony. He said the homes are on Māori land and, in accordance with tikanga Māori, the karakia was to ensure a peaceful environment for the future people who will live in the new homes.
He says traditionally the land at Parawera Bay was a kāinga (village) and cultivated for food production.
"Parawera was the living area of the hapū of the day. It's nice to know it's becoming a place to live in again."
In 2018 the landowner, Hiruharama Ponui Inc, became the head leaseholder, after a protracted dispute with the original developer, Symphony Properties Parawera Ltd.
Duggan says developing leasehold land for houses made sense, as the developer was able to buy the lease at "very good value" from an offshore vendor. As a gesture of reciprocity, it has made a commitment to offer one property of the 15 as a rental to one of the landowners.
The target market for the two-bedroom homes is retirees and "second homers". However, real estate agent Josh Bradburn from Sotheby's International thinks first-home buyers and single parents will also be interested.
"Being a ground lease, it's possible to get mortgages to 65 per cent of the property value, and this brings into play those who have a deposit of $150,000 to $200,000."
Bradburn also thought investors could be interested.
"With a rent of $450 per week, that's about a 7 per cent return."
Having designed social housing in London's East End, Duggan says sustainability and disabled access is hugely important. He says the homes exceed the NZ Green Building Council's homestar rating of six. Points are gained for being small, having eaves that overhang 300mm to stop summer over-heating, providing charging ports for electric cars, level access to the house and disabled access in the kitchen and bathroom.
"There are no garages. They are a complete waste of time. People only put rubbish in them. Garages are so overrated."
Purchasing a leasehold property is not something many New Zealanders are familiar with, but Duggan says buying a lease is a common way to obtain property in England and the Middle East.
"At the moment the ground lease is $2600 per annum per home. The ground lease is set to up at the rate of 3.5 per cent each year and this rental arrangement is set in place for the next 63 years."
Sotheby's International real estate agent Josh Bradburn says there is a huge demand for two-bedroom homes in Taupō. Photo / Rachel Canning
Bradburn says he has received hundreds of inquiries and there is a huge demand for affordable two-bedroom homes in Taupō. Four homes are already under contract and he says if they weren't leasehold then they would be flying out the door.
"The New Zealand dream is to own your own land. But I have people from France or Japan [interested in buying property in Taupō] and they expect all property to be leasehold."
