Price rises of houses in SHA queried

A DEVELOPER’S request to increase the price of the land and house packages in the Hawea special housing area (SHA) has been described as undermining the affordability of the sections.

In November, Universal Developments director Lane Hocking wrote to the Queenstown Lakes District Council asking for changes to two clauses in the SHA deed.

He said the original pricing was no longer viable due to the increased cost of construction since he signed the deed four years ago.

If councillors approve the changes at Thursday’s council meeting the price for a twobedroom, twobathroom, singlegarage dwelling, with driveway and front yard landscaping would rise from $464,000 to $499,000 (7.5% increase); for a twobedroom, onebathroom, doublegarage dwelling, with driveway and front yard landscaping it would rise from $464,000 to $499,000 (7.5% increase); for a threebedroom, twobathroom, singlegarage dwelling, with driveway and front yard landscaping it would rise from $499,000 to $549,000 (10% increase); and for a three/four bedroom, twobathroom, doublegarage dwelling with driveway and front yard landscaping it would rise from $550,000 to $599,000 (8.9% increase).

Universal Developments was also asking for the allowance of the sale of sections without an associated build contract to rise from 30% to 50%.

Wanaka ward councillor Quentin Smith said the main objective of the SHA was the provision of affordable housing.

‘‘It is hard to see how increasing the cost of the housing will have a positive impact on affordability,” he said.

In their agenda report, QLDC advice policy planner Katie Russell and planning and development general manager Tony Avery said both variations had the support of the Queenstown Lakes Community Housing Trust and they recommended councillors approve them.

In November, Mr Hocking said civil construction would begin in the first quarter of 2021, with first titles in early 2022 at which point house construction would start.