Developer Faces Challenges in Expanding Affordable Housing in Queenstown

A major Australian developer is encountering obstacles in its efforts to expand affordable housing options in the Queenstown area. Currently, the developer operates within an 88-hectare special zone, which permits the creation of up to 750 residential sections. As of now, only 217 of these sections have received consent, with 110 sold at prices starting as low as $299,000. According to KVL senior development manager Nicola Tristram, these prices are “almost half the price of what you can buy within Queenstown.”

In July 2023, the Queenstown council agreed to initiate a review of the special zone under the proposed district plan. This review affects the Kingston zone among other areas, and KVL had hoped it would facilitate the continuation of affordable sections beyond the initial 217 lots. However, Tristram has reported that the government has imposed a “plan stop” on the review. This pause is part of a broader initiative to reform the Resource Management Act legislation to align with the government’s growth policies.

While Tristram stated that KVL supports the government’s reform intentions, she emphasized the need for a viable pathway to expand beyond the currently consented sections. “We’ve got to figure out a pathway in order to get beyond the currently consented 217,” she noted. To address this issue, KVL is considering seeking a ministerial exemption or pursuing a private plan change. This approach aims to expedite the supply of affordable lots, which are in high demand among first-home buyers and families.

Tristram highlighted that the increasing demand for smaller and more affordable lots is a significant driver in the current housing market. “Affordability is just driving the demand for smaller lots,” she explained, adding that the existing planning framework lacks the necessary flexibility to accommodate these smaller lots.

The situation in Queenstown reflects a broader challenge facing many regions as they strive to balance housing needs with regulatory frameworks. As developers like KVL navigate these complexities, their ability to adapt to changing policies will be crucial in meeting the demand for affordable housing.