Stage two of the Mountview Green housing development in Rotorua is well advanced with the construction of the first 10 KiwiBuild homes due to start in the next few months.
Of the 86 houses in the two-staged $50 million project, 35 are KiwiBuild homes and most are three-bedroom, two-bathroom homes.
Construction of the 26 homes in stage one of the project on Ian St, Koutu began in April last year and includes eight KiwiBuild homes.
Fourteen homes have been completed and the first families have moved in. Construction of another 12 homes was underway and due for completion in the next few months.
Local construction company Tawharau Housing Limited was completing the development.
Stage two involves 60 homes at the Frank St end, including 27 KiwiBuild homes priced at $500,000, of which the first 10 were balloted in March.
Mountview Green developer Marcus Jacobson said four of those 10 in Frank St had "gone unconditional" and six other owners were expected to complete their due diligence process shortly.
Jacobson said most of the KiwiBuild homeowners were from Rotorua.
Earthworks were well underway and construction was expected to start in the next few months, with the first tranche of houses in Frank St scheduled to be settled in August/September this year, he said.
"Interest in these homes has continued to be very strong which we are really excited about, and we only have four two-bedroom market homes left available in stage two."
Jacobson said another ballot would take place in a few months' time for the next 10 KiwiBuild homes in stage two.
He said depending on any delays, the first homes in the Frank St stage would be finished by the third quarter of this year.
He said in terms of the Mountview Green construction schedule, Covid, supply chain issues and wet weather had all played their part in creating delays.
"But it hasn't just been us and our construction company impacted by Covid, it's also plumbers, other tradies and local supply firms which have had a knock-on effect for lots of housing projects across the district."
Jacobson said if Tawharau Housing company could find another 10 to 15 builders, completion of the Mountview Green builds could be brought forward by several weeks.
"Having these extra builders is vital as we have plans to build another 60 homes very similar to the Mountview Green model on a site around the corner, plus a further 50 homes on another site in the town."
Jacobson said he was finalising resource consent applications for those two proposed new houses and expected to do so in the coming weeks.
"We also have other potential housing projects in the pipeline over the next five to seven years, which shows just how committed to Rotorua we are."
The entire Mountview Green development was expected to be completed by May next year, he said.