Project guarantees cheap homes

This is a challenge for us. We want to create a community and it won’t be a slum or all rich houses at one end and poor ones at the other.

A new Christchurch subdivision will include nearly 200 cheap homes through a Government deal guaranteeing lower prices.

The Christchurch Racecourse Reserve Trust and Ngai Tahu Property are building the 600-home subdivision on 33 hectares surrounding Riccarton Racecourse. Construction could start this summer.

The project needs special legislation because of the land’s reserve status, which the Government agreed to introduce with conditions.

The deal requires 180 homes be priced below $450,000 – the threshold for buyers to access the Government’s KiwiSaver HomeStart scheme. The cheaper houses also must be built ‘‘at pace’’.

Ngai Tahu Property chief executive Tony Sewell described the $450,000 benchmark as ‘‘excellent’’.

‘‘This is a challenge for us. We want to create a community and it won’t be a slum or all rich houses at one end and poor ones at the other.’’

Sewell said readying the land for development without the legislation would have been slow going. Developers’ margins were ‘‘unforgiving’’ and timing was critical to get sections ready for buyers.

Ngai Tahu and the trust will own the land jointly, with Ngai Tahu handling the development.

Building and Housing Minister Nick Smith said a bill would be introduced in Parliament in May, allowing construction to start this year.

The Christchurch City Council would be consulted, Smith said. The Government would also require any proceeds from Ngai Tahu’s investment in the trust’s land to be used to support racing and ensure the iwi’s ‘‘right of first refusal’’ was respected.

The project is one of six fasttracked ‘‘exemplar’’ subdivisions the council must approve as part of its post-earthquake Land Use Recovery Plan (Lurp).The subdivision, likely to be called Champion’s Mile, was originally planned with 800 homes. As well as the affordable homes, bare sections will be sold and there will be community facilities.

Christchurch East Labour MP Poto Williams said $450,000 was still too expensive for many Cantabrians.

‘‘People are going to be spending 75 per cent of their income to buy into a house.’’

Ngai Tahu Property chief executive

Tony Sewell