The developer of Lake Hāwea’s Longview subdivision says he is “hugely frustrated” with the information presented by Queenstown Lakes District Council (QLDC) staff to councillors last week, saying it did not reflect “real world” analysis.

Universal Developments director Lane Hocking was referring to a report from council staff seeking councillors’ approval of a proposed increase - up to 60 percent - for house and land package prices in Longview.

Universal Developments had asked for increases of around $300,000 for each of its packages, meaning, for example, the price of a three-bedroom house would increase from $549,000 to $849,000.

The report to councillors argued that an increase of up to 60 percent was reasonable “given the increase in demand and market prices, the construction cost inflation, wider costs, the current pressure on building companies, and the significant discount on market rates”.

Queenstown Lakes Community Housing Trust trustee Phil Smith receives 18 land titles gifted by developer Lane Hocking of Universal Developments. 

Lane said when he saw the council report he told staff he was frustrated.

“The data that should be referenced is the building cost inflation for the life-to-date of the project. That shows my total increases over the life is less than the building cost inflation over the same period,” he said.

QLDC received advice from an independent quantity surveyor, which showed cost inflation of around 25 percent between 2021 and 2023, but Lane told QLDC housing strategic planner Emily Irwin that analysis did not reflect the “real world”.

Statistics NZ figures indicate that building costs in Otago have increased by 65 percent from 2018 to 2024, he said, citing raw data from Otago councils for cost per square metre.

Lane said Longview’s house prices come from nine different national group homebuilders “operating in an extremely competitive environment against each other”, adding that means “one can be sure that their pricing accurately reflects the market”. 

“The factors impacting pricing are clear and are unquestionably without precedent,” he said.

The majority of councillors last week disagreed with the council’s proposal for a 60 percent increase in prices and instead approved a 25 percent increase (based on the building cost inflation estimated by the quantity surveyor), at councillor Cody Tucker’s recommendation. Councillors Barry Bruce, Lyal Cocks, Gavin Bartlett and mayor Glyn Lewers voted against it and the other six councillors endorsed it.

Read more: Decision a win for first home buyers - councillor

Lane said on top of building cost inflation, he is paying hundreds of thousands of dollars to “accommodate the council's failures” to provide wastewater servicing. He said the trucking of wastewater from Longview to Wānaka’s wastewater system Project Pure cost more than $400k per annum, and he expects this cost to “go significantly higher as the population grows”.

Read more: ‘Poo trucks’ a surprise to community association

Approximately eight loads of waste are being trucked each week and QLDC confirmed to the Wānaka App earlier this year that it will continue as the subdivision develops, because of the limitation of capacity of the Hāwea Wastewater Treatment Plant.

Longview was approved under the Housing Accords and Special Housing Areas (HASHA) Act 2013. Under the legislation a deed sets out affordable housing components including fixed price house and land packages, land resale conditions and restrictions on visitor accommodation.

A clause in the Special Housing Area (SHA) deed provides the ability to amend the house and land packages for a limited number of reasons, including a change in building costs.

PHOTOS: Wānaka App