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Home / Rotorua Daily Post

Prime Minister Christopher Luxon announces $28m boost for Rotorua iwi housing project

Kelly Makiha
Kelly Makiha
Multimedia Journalist·Rotorua Daily Post·
2 Oct, 2025 03:29 AM5 mins to read

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Prime Minister Christopher Luxon at announcement for next stage of Rotorua Manawa Gardens Rental Housing Development Video \ Annabel Reid

Eighty more houses will built on Māori land on the eastern side of Rotorua after a Government funding boost of more than $28 million.

Prime Minister Christopher Luxon was in Rotorua today announcing the Government would provide the funding for the second stage of Ngāti Whakaue’s Manawa Gardens housing project.

The homes would be built by mid-2027 and tenants would pay 80% of market rent.

Ngāti Whakaue Tribal Lands owns the 6ha of Māori-titled land on Wharenui Rd and is contributing $16m.

The first 80 affordable rental homes, making up stage one of three, opened in November. Once all stages are completed in 2030, there will be 240 new houses.

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The single- or double-storey homes have one to four bedrooms and cater for households ranging from young families to middle-aged empty nesters and kaumātua.

The development has a central kaumātua precinct, community gardens, green spaces, an electric car-charging station, solar power and a wetland.

With the Government tightening the purse strings in this year’s Budget – including peeling back funding for Kāinga Ora and iwi-led housing funding Whai Kāinga Whai Oranga – today’s funding announcement was seen as significant for Ngāti Whakaue.

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There was plenty of jovial schmoozing at the official ceremony, with Ngāti Whakaue Tribal Lands chairman David Thomas suggesting Associate Housing Minister Tama Potaka was was the “new minister for Ngāti Whakaue”.

Thomas also joked they could leave the event’s marquee up for when the Government “agrees” to fund stage three of the project in two years.

Luxon quipped that it was perhaps a sign of a good relationship that he left his Auckland home that morning on Manawa Rd to visit Manawa Gardens in Rotorua.

He said it was the kind of project the Government was keen to align with.

“I love the vision, the ambition and the inspiration that you have for your people and our country and we are very proud to be partners with you in this endeavour. We think about the difference this is going to make to those families and those young people who are now going to have a home and a stable base.”

Prime Minister Christopher Luxon speaks at the Manawa Gardens funding announcement in Rotorua. Photo / Annabel Reid
Prime Minister Christopher Luxon speaks at the Manawa Gardens funding announcement in Rotorua. Photo / Annabel Reid

Potaka said the Government was focused on delivering the right houses for those in genuine need.

“These homes will be available to kaumātua, working whānau priced out of the private rental market, and others in need seeking long-term housing security.”

The Labour Government funded $40m in 2022 towards the first stage of the project.

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Asked by the Rotorua Daily Post about the lower funding for stage two, Potaka said significant support continued to be given to iwi initiatives.

“There is a certain allocation across a variety of build projects and we have been able to work with a lot of iwi and Māori organisations who have actually said we can do these projects with 50% support rather than 75% support.”

Rotorua MP Todd McClay (front from left), Associate Housing Minister Tama Potaka and Prime Minister Christopher Luxon at the announcement. Photo / Kelly Makiha
Rotorua MP Todd McClay (front from left), Associate Housing Minister Tama Potaka and Prime Minister Christopher Luxon at the announcement. Photo / Kelly Makiha

Potaka said the investment was an important step forward after housing pressures meant many had to live in motels or other unfit places.

“With only two contracted emergency housing motels remaining in use, we will meet our election commitment to exit these remaining motels by mid-December.”

Rotorua Mayor Tania Tapsell, a former National Party candidate introduced by Luxon as “one of the best mayors in the country”, drew on the significance of the agreement signed by the Crown and Māori 145 years ago to establish Rotorua.

Rotorua Mayor Tania Tapsell speaking at the funding accoucement for Manawa Gardens.  Photo / Annabel Reid
Rotorua Mayor Tania Tapsell speaking at the funding accoucement for Manawa Gardens. Photo / Annabel Reid

“When this city was established, it was done so with the help of Ngāti Whakaue and Ngāti Uenukukopako and Ngāti Rangiwewehi when we signed what was the first treaty in New Zealand, the Rotorua Township Agreement, also called the Fenton Agreement.”

It was “wonderful” for the Crown, council and Ngāti Whakaue to come together and celebrate iwi and whānau aspirations, Tapsell said.

Living the dream

Kris Warmington moved to Manawa Gardens in November with her two teenaged daughters.

The Ngāti Whakaue descendant said her sister lived across the road and many neighbourhood children played together in the street.

She said it was a great feeling of community and family and she appreciated only paying $480 a week rent for the new property – about $100 less than market rent.

Kris Warmington, who has been living at Manawa Gardens since November last year with her two teenage daughters, said she appreciated having a brand new home with reduced rent. Photo / Kelly Makiha
Kris Warmington, who has been living at Manawa Gardens since November last year with her two teenage daughters, said she appreciated having a brand new home with reduced rent. Photo / Kelly Makiha

Ngāti Whakaue Tribal Lands general manager Ray Morrison previously said there were firm criteria for those wanting the homes, with priority for those of Ngāti Whakaue descent, then Te Arawa descent. A strict vetting process banned gang members.

Property management companies looked after the tenancies and Ngāti Whakaue Tribal Lands owned the homes.

Anyone could apply for a home via a form on the organisation’s website.

Ngāti Whakaue Tribal Lands general manager Ray Morrison (left) with construction manager Dave Merrett at Manawa Gardens in Rotorua. Photo / Kelly Makiha
Ngāti Whakaue Tribal Lands general manager Ray Morrison (left) with construction manager Dave Merrett at Manawa Gardens in Rotorua. Photo / Kelly Makiha

About Ngāti Whakaue Tribal Lands

The trust was formed in 1960 and was primarily involved in the farming industry, including owning three sheep and cattle stations and 3000ha of land surrounding the Rotorua township.

In response to Rotorua’s housing crisis, Ngāti Whakaue Tribal Lands launched the Ngāti Whakaue Housing Strategy 2022, which covered rental, home ownership and kaumātua housing as well as providing training and employment opportunities.

Manawa Gardens is on Māori land and cannot be sold. The original plans to build a retirement home were changed to help improve Rotorua’s housing stock.

Ngāti Whakaue Tribal Lands is at stage three of a neighbouring development, Wharenui Rise, which has 1100 homes available to buy.

Kelly Makiha is a senior journalist who has reported for the Rotorua Daily Post for more than 25 years, covering mainly police, court, human interest and social issues.

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