Lack of land for new state housing in urban areas means the subdivision of existing properties is vital, Housing New Zealand says.
Tom Bridgman said Housing New Zealand would continue to subdivide properties in an effort to meet a rising demand for state homes, the Dominion Post reported.
"We're doing
115 redevelopments this financial year and we'll do about the same next year," Mr Bridgman said. "It's one of the ways we can increase our housing stock across Auckland."
Cost was another motivating factor. "Because we own the land it's cheaper for us to do it this way."
Redeveloping an existing property could cost around $250,000 while buying additional land and starting from scratch could push the bill out to $500,000, he said. However not all sites were suitable for redevelopment.
Mr Bridgman said: "More often than not it's in old areas of the city where there are larger sections.
"You might have four or five sections that are continuous or backing on to each other. By subdividing you would be able to put three more houses into the area.
"In recent years we've been doing more of it because of the government's push to increase housing stock."
The practice is already under way in some parts of the country and about 40 redevelopments are planned to take place in west Auckland where waiting lists are the longest in the country.
- NZPA
