The affordable house and land packages at the Hāwea SHA (special housing area) have now become as much as $49,000 less affordable.

Queenstown Lakes District Council (QLDC) yesterday (Thursday January 28) approved a change allowing Universal Developments to increase prices of the packages by between 7.5 and 10 per cent.

Council policy planner Katie Russell recommended council approve the change, saying the highest proposed price was roughly half the average current house value for the district and the packages still represent a “relatively affordable proposition”.

The 34ha Hāwea site, now advertised as Longview, was classified as an SHA in December 2018, with a deed setting out affordable housing components including fixed price house and land packages.

Prices for the packages were set between $464,000 (two bed and two bath, single garage, driveway and front yard landscaping) and $550,000 (three/four bed and two bath, double garage dwelling, driveway and front yard landscaping). 

A view from stage one of the subdivision. PHOTO: Supplied

The approved increases mean the two bedroom houses will instead cost buyers $499,000, and the cost of the three/four bedroom houses will be set at $599,000. Prices for the other two available packages increased by similar amounts.

See also: Hāwea special housing area to launch

In a letter to council, Universal Developments owner Lane Hocking said the prices were no longer viable “as a result of the increased cost of construction, particularly building materials and labour”.

Clause 42 of the SHA deed provides the ability to amend the house and land packages for a limited number of reasons, one of them being the change in building costs.

Hāwea Community Association (HCA) member John Langley spoke at the meeting’s public forum, saying the association had significant concerns: There was no quantitative evidence produced to support the increases Lane had proposed, he said, noting "affordable housing was central to council’s approval of the SHA".

While the first amendment was approved, the second amendment to the deed sought by Universal Developments - to change the number of lots that can be sold without an associated building contract at the time of sale from 30 per cent to 50 per cent - was not approved.

QLDC chief executive Mike Theelen would instead have further conversations with Universal Developments regarding the “scope of change” and report back at the next meeting.