Developer Faces Setback in Affordable Housing Project Rollout

A significant hurdle has emerged for KVL, an Australian-based property developer, in its efforts to roll out affordable housing in Queenstown. The company currently operates within an 88-hectare special zone, which allows for the creation of up to 750 residential sections. To date, only 217 sections have received consent, with 110 of these sold rapidly at prices starting from $299,000 each—nearly half the cost of comparable properties in Queenstown.

In July, the Queenstown council agreed to advance a review of the special zone under the proposed district plan, which encompasses the Kingston zone and several others. KVL had anticipated that the review would enable the company to provide additional affordable sections beyond the initial 217 lots. However, according to Nicola Tristram, KVL’s senior development manager, the government has put a “plan stop” on this review while it works to reform the Resource Management Act to align with its growth policies.

Tristram acknowledges the intent behind the government’s reforms, stating, “We totally agree with the intent of all the reforms the government’s doing.” Nonetheless, she emphasizes the need to establish a pathway that facilitates the development of more than the currently consented lots.

As a response to this setback, KVL is considering seeking a ministerial exemption or proposing a private plan change to expedite the process. Tristram explains that such measures are essential to maintain the supply of smaller, more affordable lots, which are increasingly in demand among first-home buyers and families. She noted, “Affordability is just driving the demand for smaller lots, but now our planning framework doesn’t allow for that flexibility for those smaller lots.”

The current situation illustrates the challenges faced by developers in balancing market demand for affordable housing with evolving legislative frameworks. As KVL navigates these complexities, the future of additional affordable housing in Queenstown remains uncertain, underscoring the pressing need for adaptable planning solutions.