Housing crisis looming in Hutt

John Ross has a simple message for Hutt City politicians - it is time for a serious debate on housing.

As the owner of the biggest real estate firm in Lower Hutt, he is frequently asked to advise city councilors on the state of housing in the city. His message is that the housing shortage can only get worse.

‘‘Prices are getting racheted up all the time. The price of a 100 sqm house is now $450,000 plus, 18 months ago you paid $300,000.’’

There is a real danger, he said, that Hutt City is going to follow Auckland and become too expensive to live in. ’’The reality is that with supply and demand, we are making our city a place for the privileged and that is not the way it should be.’’

Rentals are also becoming increasingly expensive. Most rentals are attracting 20 or more hopeful tenants and landlords are in a position where they can charge whatever they want, he said.

Ross wants the council to drive large greenfield developments by building the infrastructure.

The two most obvious sites are Upper Fitzherbert in Wainuiomata and the Kilmister Block in Belmont, he said. The council’s target of 6000 new homes by 2032 is a pipe dream without a major change in thinking, he said.

Rather than spending tens of million on plans to rejuvenate the central city, Ross wants the money spent on freeing up land in Wainuiomata and building a road linking it with Naenae.

He is currently marketing a subdivision for the council’s property arm Urban Plus. Built on a former council depot at the bottom of Summit Rd, he says Fairfield Waters is a good example of what is needed throughout the city.

It includes six two bedroom units that have sold off the plans for more than $300,000. There is also plenty of interest in the eight townhouses and six houses, which range from $640,000 to $740,000.

Hutt City is very desirable for young families but without a lot more projects like Fairfield Waters, they will increasingly be shut out of the market, he said. Developing Upper Fitzherbert and building a road to Naenae was costed at around $40 million in 2013 and Ross supports the mayor’s call to revisit the idea.