TAUPō HOUSING DEVELOPMENT WITH A FOCUS ON AFFORDABLE HOMES
Taupō's affordable housing shortage is one step closer to easing as plans progress for a new development in the East Urban Lands area of Wharewaka.
In a Taupō District Council meeting on Tuesday, councillors voted unanimously to proceed with an agreement to develop the first stage of a 6ha area of council-owned land next to the new Kokomea Park development.
The first stage involved 62 new houses that would be built, marketed and sold by a consortium of Penny Homes Limited, Tūwharetoa Settlement Trust and Classic Builders.
In a report to council, the option chosen was the preferred choice as “in this option, future development investment is being proposed in a financially prudent manner, which does not put any pressure on [the] council’s rates, and limits pressure on [the] council’s debt”.
It also meant the council would get market value for the land, while retaining some control over what kind of housing was built, as well as other facilities, such as parks and bus stops.
Under the proposed development, 38 affordable homes would be built on reduced section sizes.
According to Bayleys, in December 2023 the average house price in Taupō township was $971,000.
The affordable homes would be sold from $550,000 for a two-bedroom property and $650,000 for a three-bedroom home, with section sizes ranging from 77 square metres to 473 sqm, with an average size of 254 sqm.
The development would include types of homes that were uncommon in Taupō, including two-storey terraced properties and homes with single garages or off-road parking only.
The council would determine eligibility criteria for buyers of those homes.
The remaining properties in the first stage would be general housing and sold on the open market.
Taupō Deputy Mayor Kevin Taylor stressed that this option would provide much-needed housing stock, but was less financially risky than the council taking on the development role.
“We are simply facilitating this, and irrespective of where the market has gone, the need for homes remains.
“Those who [were] looking for a home in the affordable range previously are still looking for homes and will continue to look for homes.
“In my view, we have an obligation to be good stewards of this land and provide opportunities while we have the opportunities available.”
The following stages would see more homes developed on the land, totalling over 200 properties.
Although the council had funded the earthworks for the first stage, which were already complete, councillor Anna Park said it was important to note the East Urban Lands development was not the reason behind upcoming rate increases.
“This project does not actually financially put a huge lot of pressure on the rates increase.
“Future payouts of the developed land will then help alleviate debt, so I just want to ensure that this process and this amazing opportunity doesn’t get downplayed or get drowned out with the fact there is a rate increase, because if you look at what that rate increase is actually about, it is not really this.”
Milly Fullick is a journalist based in Taupō. She joined the Taupō & Tūrangi Herald team in 2022.