A new Kāinga Ora complex has opened in Auckland at a cost of $1.2 million per apartment as one of New Zealand’s leading developers calls the state-run agency’s record of running up billions in debt a national scandal and embarrassment. …
The agency yesterday allowed the public to view the newly built Meadowbank complex, saying it spent $11m on the three three-bedroom and six two-bedroom apartments.
That equates to $1.2m per apartment and rises to $1.7m if the about $4m value of the land already owned by Kāinga Ora is added.
This is an astonishing waste of money. A cost to taxpayers of $1.7 million per apartment.
If you assume the two bedroom apartments are 100 square metres each and the three bedroom ones 133 square metres each, then that is a build cost (excluding land) of $11,000 per square metre.
Building websites estimate a cheap build is $3k per sq m, a standard build around $5k per sq m and a bespoke build around $7k per sq m.
How do some apartments cost twice as much standard build and 50% more than a bespoke build?
It is because taxpayers are paying.
A more reasonable build cost could see twice as many apartments built.
David Farrar runs Curia Market Research, a specialist opinion polling and research agency, and the popular Kiwiblog where this article was sourced. He previously worked in the Parliament for eight years, serving two National Party Prime Ministers and three Opposition Leaders.
1 comment:
If it were not for the neighbours, seems a very attractive dwelling. And many occupants will have the etime to fully enjoy, and visitor mates to share with.. Kainga Ora spending seemed to be totally without limit. No one seems to be held to account. The worst that can happen is that someon will be replaced, and paid a giant severance to retire on.
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