Foundations have been set on the first of more than 200 affordable homes in Omokoroa.
The three-bedroom, double-garaged property that will be the show home for the Kaimai Views special housing area is expected to be completed by the end of this year.
The 17.5ha special housing site near Omokoroa Rd would include 242 dwellings with 50 per cent costing below the average median house price in the Western Bay of Plenty.
The site would also include an area adjacent to the Omokoroa sewerage pump station and Omokoroa Settlers Hall.
Classic Developments project sales manager Mark Hooper said the special housing area was divided into two price points sitting about $430,000 and $630,000.
"It was creating quite a good contrast within the whole subdivision," Mr Hooper said.
"What we have done as far as dispelling the affordability is it is all termed foundation range now, so wherever we say foundation, we are talking about the affordable homes."
Omokoroa's Special Housing Area will be a staged development with the first stage comprising 31 lots and the remaining stages being developed as the market dictates.
Mr Hooper said homes would be classed in a "foundation" or "traditional" spectrum.
Homes in the traditional spectrum started at $600,000 up to about $650,000 in stage 1 of the project.
Stage 2 would be rolled out this week, with homes in the traditional range starting at $530,000 up to $540,000.
Homes in the "foundation" range - or the affordable range - would roll out at $460,000 and reach $510,000-$520,000.
"Housing New Zealand's price point as far as utilising the KiwiSaver and HomeStart grants for the Bay of Plenty is $550,000 or under," Mr Hooper said.
He said the first 18 lots had already sold for homes in the foundation range.
The Minister of Business Innovation and Employment authorised a Special Housing Area on Omokoroa Peninsula in 2015.
Omokoroa is the first area in the Western Bay designated as a Special Housing Area under the Housing Accord signed in August between the Western Bay of Plenty District Council and central government.
Mr Hooper said the bulk of clients have been Omokoroa residents.
Western Bay mayor Garry Webber said the collaboration between Classic Developments, the Western Bay District Council and central government had allowed the council to work on a flagship development.
"We have made council land available which is cost-neutral to the ratepayers but means we are not in there to make a profit," he said.
"We are able to put a product on the market which we have shown to a lot of people is not lower cost, but is cost affordable."
Mr Webber said the project had also created a lot of new jobs for the community including roading and building contractors.
Bay of Plenty MP Todd Muller was "delighted" with the quality of specifications and price points available in the special housing area.
ABOUT THE PROJECT:
- Western Bay of Plenty District Council is working with Classic Group to develop The Omokoroa Housing Project.
- Omokoroa's SHA will be a staged development with the first stage comprising of 31 lots.
- Ultimately the SHA will include about 240 dwellings, 50 per cent of which will be below the average median house price in the Western Bay.
WHAT IS A SPECIAL HOUSING AREA?
- A Special Housing Area is a location identified for fast-track development to boost an area's housing supply. In most cases, private sector development companies will build homes inside SHAs for sale to private individuals and families.
WHAT TYPE OF HOUSING WILL BE INCLUDED IN OMOKOROA'S SHA?
- Affordable housing in the Omokoroa context does not mean low cost or social housing.
- The aim is to provide housing that is contemporary, affordable and accessible to a wider range of buyers.