The site of the former Kawaha Point Villas development on Ian St back in August before takeover. Photo / File
The site of the former Kawaha Point Villas development on Ian St back in August before takeover. Photo / File
A new developer of a long-delayed Rotorua affordable housing development says construction could start next month - with more housing plans in the pipeline.
The development, formerly known as Kawaha Point Villas, is a 26-plot subdivision on Ian St aimed at first-home buyers. It was established in 2017 and planswere for two to three-bedroom houses priced at $499,000.
A number of the lots sold quickly but many buyers pulled out as constant delays meant the project did not get off the ground.
Then after more than two years with little work done, the developer FHB Group Ltd was placed into receivership.
Now, with a new business spearheading the project, the remaining buyers should be in their houses next year.
Rotowhare Limited's Marcus Jacobson bought the controversial development in September with plans to rebrand and get construction under way.
This was a relief to the 12 buyers who had money locked up in the development for more than two years and wanted to see their houses built.
Jacobson told the Rotorua Daily Post things were "moving" and they had been meeting with the Rotorua Lakes Council, real estate agents and contractors.
The company had reapplied for building consents and were waiting for those to be approved. He hoped that would be next month so building work could start.
The site of the former Kawaha Point Villas development on Ian St back in August before takeover. Photo / File
From meeting with agents, he said he was even more aware of the city's housing shortage and had applied for resource consent to get more houses built at a site on Frank St.
He said that would likely get under way around mid next year.
His team had contacted the original buyers at the site, with some responding to say they "just wanted to see their houses built", he said.
One silver lining for the original buyers was that the sites were now valued at $525,000 meaning they would have secured a profit as soon as they moved in, he said.
One agent had told him some properties in Rotorua had seen a $10,000 increase in value a month post-Covid, he said.
Marketing on the additional 14 properties was set to start soon, with Jacobson planning to market with agents and on social media, he said.
He said some of the properties were planned to be two-bedroom homes but had since changed to three-bedroom as the "demand" was growing.
He said he was not in a position to reveal the development's new name but planned to in the coming months.
Harcourts Rotorua real estate agent Hielke Oppers said the median house price in the city was increasing, which had a lot to do with the "influx" of people permanently settling in New Zealand post-Covid.
He was not sure about properties increasing $10,000 a month but said many were definitely seeing a rise.
He said migration rates were "huge" and the housing market was feeling the affects of that.
This was amplifying the city's housing shortage and he was noticing people were "prepared to pay more" post-Covid than in the past, he said.
Rotorua Lakes Councils' operations group manager Jocelyn Mikaere said housing was a priority and they always endeavoured to progress consents as quickly as possible.
"We have a dedicated staff member focusing solely on the Ian St consents and working closely with the applicant's agent. Regarding Frank St, we are working with the developer on a robust pre-lodgement process to avoid unnecessary delays.
"Council and others are working very hard to increase housing supply in Rotorua and council, Te Arawa and government agencies have partnered on a multi-pronged housing plan."
She said they had increased resourcing in consenting and aim to process applications within 20 working days where possible.
The council's current housing work included investment in long-term infrastructure, district plan changes to facilitate housing at Pukehangi, an eastside locality plan and a climate action plan.
