A group of 109 never-lived-in new homes in Auckland and Wellington are for sale from the Crown, which was contracted to buy them from private developers, who failed to sell their stock in a tough market.
The housing schemes all have an underwrite via KiwiBuild because previous Governments backed new schemes to boost supply by agreeing to bail developers out if they couldn’t sell.
Housing Minister Chris Bishop said the 109 properties were part of the last Government’s KiwiBuild programme, built by private developers to sell at a capped price to mostly first-home buyers.
“The developers were unable to sell the homes and as a result they exercised KiwiBuild’s underwrite option. This meant the Crown through Kāinga Ora was obliged to purchase the homes. Kāinga Ora is now attempting to minimise losses to the Crown by selling the homes as a portfolio package,” Bishop said.
Kiwibuild is the gift that keeps on giving.
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.
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