- Kāinga Ora is selling two state homes in Meadowbank, valued at $4.475m, targeting developers.
- The Government plans to sell up to 900 state homes in the next financial year, aiming to raise $500m.
- Proceeds from sales will fund new, fit-for-purpose homes in areas of greatest need.
Kāinga Ora’s $500 million real estate sell-off is ramping up with the sale of two neighbouring state homes by the water in one of Auckland’s most sought-after suburbs.
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The two-bedroom duplexes at 5 and 7 Puroto Street in Meadowbank have a combined RV of $4.475m, overlook the city’s Ōrākei Basin, boast views of the Sky Tower, and are just metres from a train station.
The combined 1684sqm site is zoned for development, and Ray White listing agents Michael and Tatyana Ataman are highlighting its appeal to “developers, land bankers, and astute investors”.
“The vendor is highly motivated to sell, making this an unbeatable opportunity,” their listing on OneRoof said.
The two-bedroom duplexes have a combined RV of more than $4m. Photo / Supplied
The homes themselves are likely to be bowled. Photo / Supplied
The New Zealand Herald this week reported that the Government plans to sell up to 900 state homes nationwide a year, with houses in high-value suburbs to be sold first.
The Government has identified some 200 state homes valued at around $2m, and Kāinga Ora believes it will earn as much as $500m from the sell-off this financial year.
OneRoof has already highlighted the sale of three neighbouring "$2m" state homes in the Auckland suburb of Ellerslie, and the New Zealand Herald reported the recent sale of a state home in Auckland’s Point Chevalier to a developer for $1.37m.
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Ataman told OneRoof that a developer could build six to eight townhouses on the two Puroto Street sites, but he doesn’t rule out a family buying one or both of the properties available for sale and building a single large home.
“It would probably be best to buy both,” he said, adding that several developers had already contacted him and were running the numbers.
Ataman said the properties butted onto a special ecological zone at the Ōrākei Basin, so some development plans might need council approval. However, the remainder of the land was ideal.
“It has facilities like stormwater and sewer connection, which is great. And because it’s sloping, every unit could have a good view.” The proximity to the train station, Meadowbank village and good schools were also huge drawcards for buyers.
Also up for grabs are three neighbouring state homes in Auckland’s Ellerslie. Photo / Supplied
State homes used to dominate Meadowbank, but successive sell-offs have changed the suburb’s look and feel, with older homes bowled and replaced with new builds. The immediate neighbourhood has proved popular with private apartment and townhouse developments.
In 2022, McConnel Property built the Teal apartment block next door to the Puroto Street properties, and Ockham is marketing its Station M apartment block at 21 Manapau Street, next to Meadowbank train station. Construction is due to begin later this year, with apartments ranging in price from $780,000 to $2.36m
Gareth Stiven, general manager strategy, finance and policy for Kāinga Ora, provided OneRoof with a statement regarding the Puroto Street sale. He said the agency was not reducing the number of homes it owns. “For each existing Kāinga Ora home sold, a newly built home is delivered elsewhere. Money from the sale of existing Kāinga Ora properties will be reinvested into our housing portfolio, so we can deliver new, fit-for-purpose homes that are the right size and in the right location,” he said.
“The 900 homes we are proposing to sell over the next financial year represent around 1% of our current portfolio and are spread across the country.”
Stiven added: “Many of the properties offered for sale will be older houses that no longer meet the needs of our tenants or require significant upgrades. Others may be homes in high-value areas. In this instance, it makes economic sense to sell one high-value property and use the proceeds to build multiple new ones in areas of greatest need.”
- 5 and 7 Puroto Street, in Meadowbank, Auckland, is for sale, tender closing May 1
