4 days ago
- Business
- Otago Daily Times
600 rental homes planned in Queenstown development
Six hundred build-to-rent units are on the way for Queenstown in a $500 million Simplicity Living development.
The company owned by KiwiSaver and investment funds is managed by Simplicity NZ Ltd. It has already built 210 homes across Auckland, with another 889 under construction.
It has just acquired a 6.1ha site on Ladies Mile, north of the Stalker Rd roundabout, for its first development outside the City of Sails, with an aspiration to build 2000 homes in the resort.
Simplicity NZ managing director Sam Stubbs said they were working closely with the Queenstown Lakes District Council on the infrastructure required to enable construction to start.
Once that was in place, and they had the necessary consents, "we're ready to go".
Based on the Auckland developments, the first tenants could be living there within 13 months of the start.
"We've always had our eye down here, because we thought that the economics of Queenstown makes sense because it's growing, the rents are good, and there's this massive need for housing people who live here," he said.
The Queenstown development will likely comprise three-storey walk-up apartments, in one-, two- and three-bed configurations, noting there was a huge gap in the market for one- and two-bedders.
Two live-in managers will also be employed.
The units will primarily be built using concrete, brick and local schist, with an expected lifespan of over 150 years.
"The idea for us on this one ... is to do a lot of green space, a lot of carparks, a lot of outdoor storage, because it's got to be Queenstown-specific," Mr Stubbs said.
While initially the homes will be for long-term rent, they may consider selling some to retirees or first-home buyers.
He also believed they would be able to build them "slightly cheaper" than in Auckland and while he could not put a figure on the rental cost, he noted Simplicity Living's rents were usually 5%-10% below market value.
Regardless, Queenstown rents would justify the development cost.
Queenstown Lakes Community Housing Trust chief executive Julie Scott said the proposed development "interconnects" with the work the trust was doing.
The trust had 1480 eligible households on its waiting list, "and we know that we can't ... house them all tomorrow, or even in the next few years".
Before work can start, though, infrastructure to the site needs to be sorted.
Mr Stubbs said Simplicity wanted to help with that, too, but noted the council was getting all of the Ladies Mile landowners together to have a look at what was required — "we've never had that happen before".
Queenstown Mayor Glyn Lewers said the "$60 million question" was who would pay for it.
"We're quite happy for [the developer] to put the infrastructure in, and then we'll offset the development contributions at the other end when it comes to creating title.
"Our debt limits and our capacity to do that front-loading of infrastructure, especially within growth nodes in this district, has become quite tight.
"We'll put in where we can, and where we need to, but the way we're structured financially at the moment, we're looking for partnerships to actually provide this great social benefit."
However, council was committed to working it out because the outcome was "so beneficial" to the area.
Mr Lewers said he had been having "quite intense" conversations with NZ Transport Agency Waka Kotahi about potential solutions for traffic implications.
"The regional deal construct certainly helps that conversation."
