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The prospect of giant homeware/furnishings business Ikea opening in New Zealand has long been anticipated and hoped for by fans of their low-priced designer goods.

Rumours often circulate about the funky business opening a store here, with Auckland seen as the most likely place.

But the chances of the chain opening here just took a step backwards.

The Environment Court has banned the Swedish-headquartered furniture business from being a tenant in Redwood's new Mt Wellington venture because its stores are so popular it is feared traffic chaos will ensue.

"Ikea stores are known to have high traffic-generating characteristics," the Environment Court ruled in allowing Redwood's new shopping centre. "Accordingly, they have been specifically excluded from allowable retail activities in this consent."

Rents at Mt Wellington would make the store an unlikely candidate for either Sylvia Park or the new development.

"Ikea has been looking in New Zealand for quite a while but they couldn't afford Sylvia Park and they won't be able to afford to go on our site either," developer Tony Gapes said.

So, for your nearest Ikea, try Sydney's Homebush - still.