The Government is still trying to sell 35 empty townhouses on the Kāpiti Coast, more than 18 months after buying the brand-new units for almost $22 million from a developer whose project stalled.
By Justin Wong of Local Democracy Reporting
A Ministry of Cities, Environment, Regions and Transport (MCERT) spokesperson said on Wednesday it was negotiating with a prospective buyer for some of its holdings and hoped to sell the remaining properties.
"While current market conditions are contributing to some delays, the Ministry remains optimistic about achieving positive outcomes for the community and all parties involved."
In early 2025, the Ministry for Housing and Urban Development (HUD) – before merging with several departments to become mega-ministry MCERT in July – bought all but four houses in the Utauta St complex, opposite Waikanae Primary School and a stone’s throw away from the train station.
The ministry had agreed in 2022 to pre-purchase 10 of the houses from developer Utauta Development under the Build Ready Development Pathway, a scheme by the previous Labour government to build houses in high-need areas.
The ministry further agreed to underwrite another 25 houses.
A briefing paper at that time said the development had stalled and "will not proceed with Crown support" because of a weak housing market and expensive costs.
Utauta Development triggered the underwrite clause in early 2025, forcing taxpayers to take over 25 more houses.
MCERT said it would continue working with suitable parties, including community housing providers, iwi and private purchasers, to sell the houses.
HUD told Stuff last November it was in the process of selling 10 houses: "In a low-sales market, the ministry will continue to balance the pace of working with parties for a sale outcome and the return of Crown funds."
– Local Democracy Reporting is local body journalism co-funded by RNZ and NZ On Air
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