The Crown agency, which provides affordable public housing to those in need, said yesterday it planned to buy the properties in central Dunedin, Mornington and Caversham from the developers.
Otago-Southland regional director Kerrie Young cited rising demand as the reason for the move.
"The new homes will be used to meet the urgent need for more public housing in Dunedin," she said.
Kāinga Ora would not provide details of the cost of the 27 homes.
According to Ministry of Social Development data the waiting list for social housing in the city had risen from 87 in December 2017 to 381 in December 2022.
Dunedin Night Shelter manager David McKenzie said that any new housing was welcomed as Dunedin headed into winter.
"The situation is getting worse as we move into winter ... We have at least 40 homeless in our shelter locations.
Ms Young said Kāinga Ora had signed agreements with three developers, ADL Properties Ltd, TGC Homes and Ruskin 25 Ltd, to buy the homes once they were completed.
The properties comprise.—
- Ten one-bedroom homes to be built in Maitland St, and scheduled for completion in June.
- Nine two-bedroom homes to be built in Durham St, and scheduled for completion late this year.
Kāinga Ora has bought and developed properties across Dunedin in recent years, including redeveloping 20 homes it owns in Port Chalmers which are due to be ready later this year.
Ms Young said Kāinga Ora was in the planning stage for a new housing development on the former Aaron Lodge site in Kaikorai Valley it bought in 2021.
It was also working through a potential purchase of the Dunedin City Council-owned former bus depot in Princes St, he said.
