The cheapest new-builds within commuting distance of Auckland

The cheapest new builds within commuting distance of Auckland are about to be built in a government-subsidised development dubbed the Hobsonville Point of the South - and they are not just for first home buyers.

The small three-bedroom house and land packages at Lakeside in Te Kauwhata, in northern Waikato, cost $650,000 - less than just the average build cost in either Auckland or Hamilton.

But Kāinga Ora’s latest affordable homes, called Colab homes, differ from some other Government-led schemes in that the “simple eligibility criteria” means any owner occupier can purchase them.

Kāinga Ora purchased 1303 of the 1600 sections in Winton’s Lakeside development in 2020 after the two-bedroom KiwiBuild homes failed to attract much interest.

The KiwiBuild scheme in this area has now been replaced with these Lakeside Colab homes on 225sqm and 440sqm sections.

So far 170 of the 223 sections that complete stage one of the Lakeside development have been sold to local and national builders with 67 of them earmarked for Colab homes. This represents 39% of all the sections sold in the development so far.

Kāinga Ora would not disclose how much the sections had been sold for citing commercial sensitivity, but previously told Stuff affordable homes could be achieved partly by it selling the sections at cost.

Buyers can purchase the homes from the building firms - including Golden Homes, Booming Builders, Callavate, Mike Greer, Finesse and Complete - providing they meet the eligibility criteria which includes being a New Zealand resident and committing to living in the house for at least two years.

An artist’s impression of the Lakeside development. Photo / Supplied

Golden Homes, which is one of the first companies to advertise the homes, is marketing them as being suitable for first home buyers or retirees. The listing adds: “Lakeside Colab Series homes are a more affordable option aimed at all owner occupiers, whether first home buyers or not.”

Kāinga Ora project director of greenfield and complex Rachelle Raw said the homes were being sold on a “first-in, first served basis” at this stage, but a ballot system would be put in place if needed.

Bayleys Pukekohe real estate agent Mark Fourie, who sold a number of the initial properties in Lakeside, said there has been a lot of interest in the affordable homes priced at $650,000.

“If you do a search, there’s just nothing for stand-alone homes in that $650,000 bracket. You can certainly buy apartments or duplexes for about $600,000, but not stand alone and I think that’s really the attraction of them,” he said.

“They are small. These three-bedrooms are around the 100sqms so they are relatively compact, but they will have everything you want.”

As well as the Colab homes, at least one builder he had spoken to is also planning to offer three-bedroom, two-bathroom homes for a similar price on the open market and he expects these will also attract retirees as many already live at Lakeside.

Some of the existing two-bedroom homes in the Lakeside development that initially sold for $480,000 are now back on the market for $650,000, but Fourie said they would be lucky to get that now.

One of the attractions of Te Kauwhata, like Pokeno is that it is in the middle of both Hamilton and Auckland so people are close to the motorway can decide whether they either turn left or right, Fourie said.

James Wilson, head of valuations at Valocity, OneRoof’s data partner, said the homes appear to be better value when compared to what was currently available.

The median house price in Te Kauwhata is $829,000, while the average cost of rebuilding in Hamilton is $734,000 and in Auckland it is $669,000 excluding land costs.

Valocity head of valuations James Wilson: “You can’t get many new builds at that level.” Photo / Fiona Goodall

“Around the country right now, you can’t get many new builds at that level. There’s no doubt about it – at that price point - it's subsidised when compared to the open market”

However he said anyone looking to buy in Te Kauwhata needed to do their research and take into account future demand for new homes in the area and any potential impacts on re-sale value.

“If the market is slowing, which it is, but those homes are still available to purchase, buyers should consider why would someone uniquely look at Te Kauwhata over say other areas closer to larger urban centres - for example Drury South, if they want to be closer to Auckland or Hamilton North if they want to be closer to Hamilton.

“If the developer wasn’t able to sell all the sites to the private market – hence the need for Kāinga Ora to buy a lot of sites there – is that already telling you that demand for that type of property in that location mightn’t be there at present and what does that mean for your potential re-sale down the track?”

The latest homes, which are still in the first stage of the planned five stages, are being built near the new neighbourhood village, which will include a café, playground, childcare centre and general store once completed.

While the land for a bigger primary school in Te Kauwhata has already been handed over to the Ministry of Education and is due to open in 2026 with an initial role of 550 students.

Waikato District Whangamarino councillor Jan Sedgwick said Lakeside is an “excellent community with a lot of community spirit” and existing residents’ initial concerns at the time of the rezoning around it being a mass development without a heart had been unfounded.

“The people are also integrating into the main part of Te Kauwahata and vice versa and all in all I would say it has been a success beyond what we had expected.”

Civil works on stages two and three are now underway and the land for all five stages is expected to be completed by 2028. However it could take until 2030 until all the homes are built there.