The government has shelled out close to $13 million for 16 homes in a subdivision that has been earmarked for transitional housing.
The $12.874m purchase of the three-bedroom properties at 45 Borman Road, in Huntington, Hamilton, went through at the start of the month, while a payment of just over $8m for the remaining 11 properties in the development, comprising seven two-bedroom and four three-bedroom units, is due to settle on May 31.
The near-$21m deal is part of the government’s commitment to deliver more public housing.
Transitional housing provides temporary accommodation for people and families with urgent housing needs and is a step between emergency accommodation offered at some of Hamilton’s motels and secure long-term accommodation.
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Kāinga Ora Homes and Communities Waikato regional director Mark Rawson said the agency typically takes over ownership of new-build developments once the construction of the homes is complete.
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“In this case, the homes are being delivered in stages, and so the settlement process is similarly staggered. The first batch of 16 homes has been settled, and the remaining 11 will settle in the next month.”
The properties are being built by Hamilton-based Apex Properties who had the houses for sale individually for between $800,000 and $850,000 each before signing the deal with Kāinga Ora. They had been advertised with an expected market rental return of between $600 and $620 a week.
The first 16 new-build homes, designed by Byrne + Enright, work out to $804,625 each. Photo / Supplied
Apex Property Group purchased the almost 6696sqm section for $3m in March 2020 and construction began last year.
Kāinga Ora is leasing the houses to Emerge Aotearoa, an organisation contracted by the Ministry of Housing and Urban Development, who is tasked with managing them and working with the Ministry of Social Development to find suitable tenants.
The record-breaking deal, brokered by Harcourts agent Yvenna Yue, is understood to be the single biggest residential transaction in both volume and value.
“We have never had someone buy the whole lot in one go – that's unheard of,” Yue told OneRoof at the time.
Apex Group is also building 14 higher-end three-to-four-bedroom townhouses on Pedro Way in Flagstaff that are priced by negotiation.
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