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Home / Rotorua Daily Post

Housing crisis: Kāinga Ora spends $60m in less than three years to get more Rotorua houses

Kelly Makiha
By Kelly Makiha
Multimedia Journalist·Rotorua Daily Post·
9 Oct, 2022 08:00 PM4 mins to read

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A vacant section of land has been bought for $650,000. Photo / Andrew Warner

A vacant section of land has been bought for $650,000. Photo / Andrew Warner

A vacant piece of land on Devon St will soon see six two-storey new public homes.

The development is one of the latest purchases in the Government's more than $60 million spend in the past three years to get more houses in Rotorua.

Part of the spend includes buying 86 existing homes - including $8.1 million on the former Boulevard Motel on Fenton St that had 31 units.

That spend means Kāinga Ora is spending nearly $600,000 on average for each existing property.

The Devon St site is part of a $20.4 million spend on five vacant pieces of land in Rotorua between October 2019 and June 2022.

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The other sites include $14.5 million on Collie Dr, $2.375 million on 1446 to 1460 Pukuatua St and $580,000 at 47 Roger St in Pukehangi.

Kāinga Ora has also spent $8.73 million on new buildings during the same period, including in Victoria and Fairy Springs.

The figures have been released following an Official Information Act request by Rotorua resident Renee Kiriona, who has supplied the information to the Rotorua Daily Post.

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The land at 54 Devon St is 1280sq m. Kāinga Ora has told the Rotorua Daily Post it paid $650,000 for the land, which it said was "in line with the independent market valuation carried out as part of the due diligence process".

According to the property's records, it has a September 2020 rateable value of $685,000 and a land value of $385,000.

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Kāinga Ora regional director Darren Toy told the Rotorua Daily Post the Government department didn't pay more than 5 per cent above independent market valuation for a property.

The site, which was land only as the previous dwelling had been removed, was valued by a registered valuer on January 25, 2022 and the site was valued at $650,000, he said.

The new Devon St development being considered is made up of six two-storey homes with four of them being two-bedroom terrace homes and two three-bedroom duplexes.

The development cost of the Devon St homes is expected to be $4.3 million.

A vacant section of land has been bought for $650,000. Photo / Andrew Warner
A vacant section of land has been bought for $650,000. Photo / Andrew Warner

In a letter sent to Devon St residents recently, Kāinga Ora said 54 Devon St had been bought to help "meet the urgent need for more warm, dry and modern homes in Rotorua".

The letter said the houses were well located for schools and community facilities and would be for people in need of a long-term place to call home.

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It said the homes would be modern, warm, dry and would be fully insulated with carpets, curtains, double glazing and energy efficient.

It would match the homes to people on the Ministry of Social Development's Housing Register, giving priority to those in greatest need.

The letter said a key focus in settling into new homes was ensuring residents understood their responsibilities of being good neighbours and connecting with their communities.

It said it was also looking at new ways of supporting its customers and helping them to connect to support services they needed.

No timeframes were given but the letter said it would keep neighbours informed once it had applied for resource consent later this year.

Devon St resident Vince Taylor. Photo / Andrew Warner
Devon St resident Vince Taylor. Photo / Andrew Warner

Nearby resident Vince Taylor said he had lived at his home for 30 years and was naturally a little apprehensive.

"I have got another house out by the airport and the plan is to sell this place and get the hell out of here."

He said his main concerns were whether the infrastructure in an established area could handle the extra houses and who Kāinga Ora would put in the homes.

Devon St resident Elly Van Wolfer. Photo / Andrew Warner
Devon St resident Elly Van Wolfer. Photo / Andrew Warner

Another neighbour Elly Van Wolfer wasn't too worried.

"That's okay. People need to live somewhere."

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