First Special Housing Area for Queenstown Lakes

Hon Dr Nick Smith

A 38-hectare site with the potential for 150 new homes near Lake Hayes has been announced as the first Special Housing Area under the Queenstown Lakes Housing Accord, Building and Housing Minister Dr Nick Smith and Mayor Vanessa van Uden announced today.

“Queenstown has the worst housing affordability in the country because insufficient land has been made available for housing and too few homes have been built in accessible price range for young families and first home buyers. Home ownership in Queenstown amongst people under 40 has dropped by a staggering 33 per cent according to census data since 2001,” Dr Smith says.

“The median multiple of house price to income in Queenstown is 8.9 as compared to 8.4 in Auckland and 5.5 nationally. Housing is deemed unaffordable above 4 and severely unaffordable above 5.

“This new Special Housing Area is the first step in tackling this significant problem for Queenstown. It is the product of a constructive dialogue with the Queenstown Lakes District Council and increased recognition of the problem of affordable housing in the district.”

“The Queenstown community needs to address this issue. Queenstown’s burgeoning tourism industry needs hundreds of hospitality and tourism workers, yet too many of these places are filled by overseas staff on work permits because the cost of housing is too steep for families. Queenstown needs to become a more family-friendly community with the houses, facilities and support to make it a viable long-term home for people on modest incomes.”

The Queenstown Lakes Housing Accord was agreed in October 2014 between the Government and the council to address the district’s housing supply and affordability issues. The Accord allows for the creation of Special Housing Areas, in which qualifying developments can be streamlined and fast-tracked.

“The first Special Housing Area announced today will be established at Bridesdale Farm. It is a greenfield site and adjoins the existing Lake Hayes development. Sixty-four sections or house and land packages have already been pre-sold, and approximately 80 per cent of the house and land packages have been priced at or below $450,000,” Dr Smith says.

“The Queenstown Lakes Housing Accord is one of seven agreements we have made with local councils around the country to improve housing supply and affordability in New Zealand. We are also reducing building materials costs, reining in development contributions, cutting compliance costs and investing in skills and productivity in the construction sector.

“Some of the local opposition to these Special Housing Areas is misinformed. The complaint that the new housing is going to be cheap overlooks the fact that the houses will be priced at about $450,000 each and will have to comply with the latest building standards. People do not have a right to insist on rules that in effect require their neighbours to live on large lots only affordable to millionaires.

“Nor do I give too much credence to those who have sub-divided farmland and built their own home, but who now insist the next family cannot. It is important that Queenstown’s stunning mountain landscapes are protected, but all of the proposed new housing areas are on the plains. I view the rights of landowners to do as they wish with their land and the rights of young families to an affordable roof over their head as more important than the right of neighbours wanting to maintain the outlook of a paddock.

“The Queenstown Housing Accord and the Special Housing Areas are designed to support the Government’s other initiatives to help young families into home ownership. Our HomeStart grants, KiwiSaver first home withdrawal and Welcome Home Loans are going to give hundreds of Queenstown families the opportunity to buy their own home, but it will be pointless if the houses do not get built.

“A concerted effort is required by both Government and council over a sustained period to reverse the 30-year downward trend in home ownership in Queenstown. This is a useful first step but more Special Housing Areas will be needed to achieve our goal of Queenstown being an affordable community for families on modest incomes.”

ENDS

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