"That's very reassuring I must admit," she added, on hearing the building was to be a family home.
The site's direct neighbour, who wanted to stay anonymous, said the building "kind of just turned up". She too had been curious. "What can you do though? For us, we were more concerned about losing our view," she said.
"Housing New Zealand is committed to providing homes to people in need and by replacing [the] demolished house with a four-bedroom home, relocated from Springhill Prison, we are doing just that," the spokeswoman said.
Inmates at Waikato's Springhill Prison refurbished older houses on behalf of HNZ.
The spokeswoman said while HNZ did not have to consult with residents about activity on its sections, provided they complied with the district plan, they welcomed enquiries.