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Kāinga Ora’s mothballing its Dixon Street Flats in Wellington, with no confirmed plans for what will become of the building.
The flats have a proud history in New Zealand’s social housing story, as the second apartment block to be built by the Government.
Local residents want progress on the site, saying it’s an important asset for the community and is wasted sitting empty.
A “landmark” central Wellington social housing block, once famed for its significance in New Zealand’s social development, is set to be boarded up with no confirmed plans for its future.
In late 2022, Kāinga Ora described the Dixon Street Flats as “old and no longer fitfor purpose” and began relocating tenants from the 117 units to other social housing sites. A number of residents refused to leave, claiming they hadn’t been offered adequate alternatives.
In April, 22 tenants remained in the flats despite 90-day notices lapsing. Now, the agency has confirmed it’s relocated all the remaining tenants, clearing the way for the building to be boarded up.
As part of the process Kāinga Ora took one resident to the Tenancy Tribunal, where it was revealed the government department held earthquake concerns about the building and was considering selling it.
The Dixon Street Flats in central Wellington are now empty, with no plans announced for the building's future. Photo / Mark Mitchell
Kāinga Ora’s Greater Wellington regional director Vicki McLaren, said all options were being considered for the future of the building, including putting it on the market.
“Options under consideration range from remediating and refurbishing the building to selling it,“ McLaren said.
“There are a number of factors to weigh up, including that the building is heritage-listed, and a focus on making financially prudent decisions,” she said.
Wellington City Council documents show Kāinga Ora has been issued a consent for temporary mothballing, as well as the installation of hoardings and signage to secure the site.
It comes amid financial pressures for the housing agency, which has paused a number of projects around the country after a scathing report revealed it was looking to record a $700 million annual deficit in 2026/27.
Kāinga Ora's Arlington Apartments development in Wellington, which promised to house 900 families, is on hold despite $48 million being spent so far. Photo / Mark Mitchell
McLaren maintains they are still “working through decisions about the future use of the building” but no decisions have yet been made.
The language hasn’t changed since 2022, when the agency said it was then “working through a decision regarding the building’s future”.
McLaren said refurbishment would require “major” work.
“Many parts of the building have reached the end of their life and need replacement.
“As the flats are heritage-listed, we needed to obtain resource consents and reach an agreement with Wellington City Council on how we will protect the building’s visual appearance and heritage status while it remains empty,” she said.
The agency has also faced “significant challenges” with squatters and unauthorised entry into the building, spending $124,012 on security guards between June 3 and August 18.
The Dixon Street Flats have always been used as social housing, being built in the 1940s as a part of the first Labour Government’s state housing programme. They were the second block of apartments to be built, after the first were completed in Berhampore.
The building has the highest level of heritage protection, listed as a Category 1, and is not listed as earthquake-prone on MBIE’s earthquake-prone building register.
Heritage New Zealand describes the building as an “archetype of Modernist apartment blocks in New Zealand” that “marked a new era of domestic architecture”.
Kāinga Ora says many parts of the building have reached the end of their life and need replacement. Photo / Mark Mitchell
Housing Minister Chris Bishop described the building as “outdated” and said there are earthquake concerns.
“Many components of the building are nearing the end of their life and require replacement, making repairs both costly and time-consuming.”
Bishop did not address questions of whether he would be open to Kāinga Ora selling the building, or transferring it to a private developer as he had previously signalled for another Wellington site.
“Kāinga Ora are currently reviewing their options for the future of the building and will provide advice to the Government. No decisions have been made yet,” he said.
Chairman of Inner-City Wellington, the local resident’s association, Reverend Stephen King is urging Kāinga Ora to make progress on the site, saying leaving it vacant is “outrageous”.
“It’s a cornerstone to our inner city residential population [...] the last thing we need is another Gordon Wilson ghost building.”
The nearby Gordon Wilson Flats were built in the same era as the Dixon Street Flats as part of the Government’s state housing programme. The 11-storey building is now owned by Victoria University and has sat empty on The Terrace for more than a decade.
The Gordon Wilson flats on The Terrace were built in 1959 and have sat vacant since 2012. They're now owned by Victoria University, which wants to demolish them, but they're on Wellington City Council’s heritage list. Photo / Mark Mitchell
King said social housing is needed in the inner-city community and contributes to its diversity.
“To have that building in that central location just sitting there boarded up and idle – it’s exactly what we don’t need,” he said.
King said it must remain as social housing, and fears if the building were to be sold and run as private residential apartments it would leave a deficit in affordable housing in the central city.
Ethan Manera is a multimedia journalist based in Wellington. He joined NZME in 2023 and is interested in local issues, politics, and property development in the capital. Ethan is always on the lookout for a story and can be emailed at ethan.manera@nzme.co.nz.
