By Greg Ninness
Housing and Urban Development Minister Phil Twyford says it is likely to take 6-12 months to finalise contracts with development partners for the KiwiBuild project at Unitec in Mt Albert, with construction of homes likely to get underway next year.
In a Double Shot interview with interest.co.nz, Twyford said the Government was talking to possible development partners as part of its plans to build 3000 to 4000 new homes on the site.
At the head of the queue is the Tamaki Makaurau iwi collective, which has first right of refusal on any government land in Auckland that's repurposed, as part of their Treaty of Waitangi settlement terms with the Crown.
Twyford said iwi involvement in the project could take several forms, including buying into the project and being a co-developer alongside the Government, or taking on just part of the project to develop themselves.
"They have ambition, some of them have serious capital behind them and they understand the need for affordable housing," Twyford said.
"My hope is that over the next 6-12 months we get all of the development partnerships with iwi and anyone else we want to partner with locked down and we get the master planning completed.
"Already a lot of the work's done on that site so we don't have to reinvent the wheel, and my hope is that by next year we'll be building on site," he said.
At present the plans for the site are being drawn up by HLC, the Housing NZ subsidiary set up in 2006 to master plan the redevelopment of the former Hobsonville Air Force base into the well regarded housing development now known as Hobsonville Point.
Hobsonville Point will eventually contain around 4500 homes, making it slightly larger in its scope than the Mt Albert project.
HLC has also done the planning work for the redevelopment of land at Avondale, Mt Roskill, Mangere and Northcote into more intensive housing projects.
However HLC's role could be superseded by the Urban Development Authority (UDA), a government super agency Twyford is setting up that would work alongside local councils and speed up intensive development projects, not only in Auckland but throughout the country.
Twyford said he hoped to have the legislation establishing the UDA introduced by the end of the year, but it would probably be the end of next year before that was passed.
Once the UDA was established it would take over the management of existing KiwiBuild projects as well as spearhead planning for new ones.
Intensification around the rail network
However the Government was not waiting for the UDA to be in place before undertaking new projects.
In addition to the Mt Albert project, it was also looking at possible intensive housing projects in Manukau, Panmure and Henderson, Twyford said.
"We really want to to try and deliver a lot of intensification around the rail network," he said.
"We'll be announcing more of those in the coming weeks and months.
"And there are also some very good opportunities outside of Auckland.
"In Wellington, Tauranga and one or two other places, councils are coming to us and saying, 'we think there's a great opportunity here'."
While it was likely that the UDA would develop the plans for the new projects and then engage private developers to complete them, it was also possible that the Government could get directly involved in building some of the KiwiBuild homes as a non-profit developer.
"We thought with KiwiBuild that one of the ways we could push the price of housing down is for the Government to act as developer itself, take on some of that risk and forgo the developer's profit margin, and that may be part of the mix as well," Twyford said.
37 Comments
What a load of dribble from Mr Twyford once again!
What is the lot of work that has already been done on the Unitec site he is referring to?
Does the Iwi have the necessary ability to build the so-called 4000 units on 29hectares.
No because it is not possible!
I thought there were meant to be 10,000 per year built and yet he is saying it will be another 12months at least before they even start on their first one?
Geez they will have to build a helluva lot in their last year of power to make 30,000 when it is going to be 2years before their first is built.
TM2, at least this government are actually trying to address the housing shortage, unlike National who simply denied its existence. If I was a cynical person, I might wonder if you are actually hoping for a continued shortage of housing, so that you could profit personally. But nah. Surely no one could be that heartless?
Fitting in 3000-4000 units is quite possible as has been pointed out to you several times. There's even been an article on it on this very site.
https://www.interest.co.nz/property/93074/getting-4000-homes-first-kiwi…
The delivery was always going to be weighted later due to the challenges in ramping up from a standing start. If you assumed a linear delivery starting on day 1 then you are crazy.
Right, because this kind of craziness will never happen there with 3~4000 units :)
http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=12037846
It's all about build build build with no regard for significantly obvious unintended consequences. Ever wonder how we got into the leaky homes mess in the first place?
Design work and resource consent by the looks. If you were familiar with developing new sites you would be aware of this.
You are also unaware of the timescale to get of project of this size underway, and the work required to complete it. You don't just call up a handyman to get the project underway.
Given that you have no experience or understanding of what is involved your opinion on what is possible doesn't count for much. Perhaps you'd be better off looking at National's failure to building anything, to deliberately increase compliance costs for construction and ignore everything problem that was brought to them.
Phil is a politician, he talks the talk. Interest.co.nz might be better to invite to interview someone that has been critically involved with the kiwibuild ideas. Someone technical or engineering based that might be able to put some minds at rest to really how realistic these development plans are. Until that happens then it will be the left against the right picking apart what a politician is saying. Not much of a future in that.
Phil Twyford and his government are an accident because of W Peters self-interests in becoming a shadow King himself and an Acting King during A Jacinda's parental leave.
So, most of their policies are merely wishful thinking, which are absolutely incompatible with how real businesses operate in this real world.
Most of New Zealand's property market issues aren't unique and we are increasingly moving into synchronisation with global trends, says CoreLogic managing director for Data & Analytics Olumide Soroye.
http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=120…
The government are doing an excellent job.
Go Iwi!
Really fascinating to see iwi taking charge of their own. Labour and Moari look back on the same page again, promoted by the need to address this housing crisis. So good to see Iwi doing it for themselves too. The rest of the country might end up learning a lot from how they go about providing for their members.
https://www.radionz.co.nz/news/te-manu-korihi/355800/maori-housing-issu…
https://www.waateanews.com/waateanews/x_news/MTg5MTk/53National%20News/…
The coalition have done absolutely nothing, open your flippen eyes.
No Kiwibuild houses yet and no firm details re Unitec.
6 to 12months to get building partnerships together????????
Why has this Iwi got sole rights in Auckland, sounds like a disaster in the waiting when they have the monopoly on it rather than open to,the market.
Several clipping the ticket I would say, watch this space!
When something constructive is done I will believe it!
As I understand it, the Iwi has right of refusal on surplus crown land in Auckland. I.e. if the crown wants to get rid of land, they offer it to the Iwi first. The settlement covering this passed a few years ago under the previous government. You're a bit late to be complaining about it now.
http://www.stuff.co.nz/national/10292073/Treaty-of-Waitangi-claim-to-pa…
How long did it take you to get building partnerships together for a development on this scale? I've never tried it myself, but as I understand it arranging all this stuff normally takes quite a while. How would you speed up the process?
The timelines and processes look comparable to similar (although much smaller) developments initiated by the previous government:
"Nga Mana Whenua o Tamaki Makaurau Limited Partnership has been given a right of first refusal on two of the three latest sites that has been earmarked for housing in Auckland."
"Housing Minister Nick Smith says the plan is to build up to 740 homes on the sites in Manukau, Waterview and Mt Albert."
"Mr Smith says the first homes should come on stream in 18 months to two years, with a proportion being either social housing or priced as affordable."
Did you kick up a fuss about that process too?
https://www.waateanews.com/waateanews/x_story_id/MTM2ODA=/www.waateanew…
Don't you really like this video? It is the best comic show I have seen so far this year !! LOL --- thank you Greg.
"It's early days" PT says .. Indeed, no hurry eh? Good things take ages ... another few years should be fine !
HLC ... Many development ? .. they are finishing up Hobsonville .... "they are Keen" ... really ? "there are a number of options" ... Geez , we are still talking Options end of April 2018 ? ... PT is still talking up hopes and selling pies in the sky.
"UDA introduced by the end of the year, but it would probably be the end of next year before that was passed " ... But they will be working on plans now as if it was there .... ain't he great? ... how can people work on projects or land according to a legislation that hasn't been passed yet ? ... I love this circus.
so translation: dont expect anything before 2020, not even plans!.
Greg forgot to ask the minister while he was there :
- What would happen to the market until 2020?
- What would the house deficit numbers look like by then 60,000 or 80,000 ?,
- Are they going to legislate stopping human Organic Growth & demand too?
- Are they going to close the Floodgates until then?
- With all the current shortage and creaking gates still open, What will happen to rents next year ?
- With all lending restrictions and chasing investors out of the market, what will happen to housing supply by 2020?
- Any idea about the Homeless demand increase by 2020 due to his building plans ?
Unitec site : He hopes in 6 -12 months, but a development will take a decade to complete ... ..... Sure, if there was any money left by then after EQC and other black holes which in current rapid formation. We will have 4000 units out of the 100,000 in a decade - huh?
"He likes to see big developments".. so no plans yet , no solid work, Just juicy listing of " Fantastic opportunities " , towns and places which will be announced in the future !!.... Talk is cheaper and is losing any remaining value as time goes by with no solid work done ( be that in plans, designs, consents etc)
"We thought with KiwiBuild that one of the ways we could push the price of housing down is for the Government to act as developer itself, take on some of that risk and forgo the developer's profit margin, and that may be part of the mix as well," Twyford said.
YET, contradictions galor, how big of a dent can this New developer make in the market?, when and at what cost? .. but wait he wants the "incompetent" private sector who failed to build such developments to do it with them ..lol! this CoL will become the shepherd mustering these loose private developers and construction companies to the slaughter house. So who built Hobsonville ?? and is it considered affordable , is PT going to claim that too ?
None of this makes any sense, PT still sounds more clueless than assertive ....only addressing the sheeples who could believe a word of what he said ..
This is all about feeding the kool aid to the naive public waiting patiently for miracles to happen ( even in few years).... Softening voters to keep the faith and get these losers elected again in 2020 to finish an imaginary job :) - Just big BBQ talk about rolling sleeves Up and doing work!
A wise word to FHBs and other buyers in the market, ... Do not be fooled by this gravy train ... Do not wait too long, buy if you can this winter when seasonal prices could fit your budget. ... You will regret it big time if you follow this CoL empty promises - you could end up waiting for years to end up living in a shoe box that probably won't be even built.
Some clever DGM dudes will tell you to think positive and be constructive and look at the bright side -- well, you makeup your own mind, Use your brains and logic and ask around for advice ... Most of these clever commentators have no skin in the game, they have their own homes, and are here to prevent the inevitable failure of a CoL they politically supported ( regardless of the reason).
@uninterested anyone who thinks that builders will build for the Government without overpricing is delusional . Quite simply the Government NEVER makes any money doing anything .
If the Government does become a builder , it will lose a fortune , you can be sure its going to be the biggest drain on the fiscus we have ever seen .
Still thin on details but it's only been 6 months since the government took office. So PT says he wants to see building on the Unitec site in MtAlbert, start in 6-12 months, I think 12 months is realistic, let's see in April 2019 if building of the 1st houses is underway.
4,800 votes so far. 43% voted that the COL is doing an awful job, bad is at 22%, which leaves 35% to share between ok and good. I agree with Williams that motivation plays a large part in responding to a voluntary poll and there will be a higher % of National voters here based on that. However, we are six months in and the anti government noise is getting louder, if anything. That can't be good for NZ as a whole, especially when it's the group with the resources that don't want to engage with whatever the objectives are.
Get it right, it was the AM Show. We stopped watching the Breakfast Show eons ago. When they employed an ex Green party candidate to present we put it on the permanent ban list. As for Kids at the table, you'd be lucky to see them out of bed at that hour during school terms and no chance of that during the holidays. They might rise some time during the morning, but it's not likely.
Blah Blah Blah , I'll believe it when I see it , this Government is embarking on a hare-brained scheme to house everyone in an affordable house to buy and GIVE housing to those for whom 'affordable ' will never be affordable because they re not disciplined with money , don't save and don't have 2 ten cent coins to rub together
That this idea is even remotely plausible and can be achieved when 40% of the population dont own a home and 33% of Kiwis are living from paycheck to paycheck.
Its simple arithmetic it cannot be done without running a massive budget deficit and Grant Billy -Bunter Robertson has been adamant he wont be doing that .
Bashing those people who are stupid enough to have provided rental stock into the housing market , is never going to help matters .
I haven't even bother to read the article yet but based on the length of Eco Birds diatribe x number of Exclamation points + question marks in TM2s posts the announcement must be a winner, with best supporting actor going to Boatman for his usual govts are wasteful and inefficient canard.
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