Property editor of the NZ Herald

Price hikes hit NZ's biggest apartment scheme

Deposit-payers might be asked for 15 per cent more
Work is progressing on Rose Gardens at Albany.
Work is progressing on Rose Gardens at Albany.

Developers of New Zealand's biggest new multi-unit apartment project are considering asking buyers for 15 per cent more money for more than 200 new Auckland places.

Robin Lee, deputy manager of the $300 million 800-unit Rose Gardens Apartments project now well advanced at Albany, said more money was needed to cover rising construction costs.

"Building costs have gone up significantly. Even if we ask for 15 per cent, the money still doesn't cover construction costs," Lee said today. "Right now, we're just contacting some of the buyers to get feedback."

There are 201 units in stage one of the project, all have been pre-sold and it is those places for which more money might be sought, Lee said.

One buyer said he had bought into the Rose Garden Apartments project at Albany, promoted last year as the largest project of its type if New Zealand.

Photographs on the Rose Gardens website show construction is well underway, with some of the apartment blocks already up.

The man was contacted by a real estate agency on the project.

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"I received a call today advising that the Rose Garden apartments have experienced significant delays. The developer is seeking to get out of its contracts with investors who have bought off plan," he said.

"They are proposing the buyers pay about 15 per cent more. They say market has risen since contract entered into and with their increased costs and delays either the buyers pay more or they force them out of the contracts and seek to resell the apartments," he complained.

He said he was told the project was late due to Auckland Council, is unhappy about the situation and questioned the reasons given for the delays and price rise.

The apartment scheme site is 25 Don Mckinnon Drive.

The $300 million 800-unit Albany Rose Garden Apartment has been touted as New Zealand's largest residential apartment development.
The $300 million 800-unit Albany Rose Garden Apartment has been touted as New Zealand's largest residential apartment development.

At the time, Martin Cooper of Harcourts said the project was the country's biggest scheme of its kind and a launch event would be attended by Economic Development Minister Steven Joyce, he said.

At the time, promotional material stressed proximity to the Albany park-and-ride station, Westfield mall, shops, cafes, supermarkets and cinema facilities.

The Herald reported last year how the first stage was due to begin in October 2015 and finish this year.

A fact sheet said up to 100 people would work on the site and the investors had also built subdivisions at Albany and Pukekohe and established other businesses in Auckland.

Watch: Promotional video for Rose Garden apartment development:

- NZ Herald

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