Housing NZ Mosgiel sales backtrack

Housing New Zealand appears to have partly backtracked on a plan to sell 30 state houses in Mosgiel.

The corporation had previously claimed there had been low demand from buyers in Mosgiel’s buoyant property market.

However, the Otago Daily Times ascertained the corporation released only eight properties to the market, all were double-unit dwellings sold in four separate pairs. They sold promptly, but none of the others have been listed.

HNZ received $1.1million from the sales, a spokesman confirmed.

"There wasn’t demand for [the remaining properties]," an HNZ spokesman had said.

The spokesman initially claimed the remaining 22 properties were on the market, but that HNZ was considering other options because they were not selling.

When the ODT presented conflicting information, the spokesman confirmed the houses were not listed.

"The remaining Murray St properties that are not yet listed for sale may yet be listed however, for now, we are reconsidering whether there may be demand for them, either from the refugee intakes or demand from applicants on the Ministry of Social Development’s social housing register."

In May, the corporation said they would all be sold on the open market because there was little demand for the properties from prospective tenants. Real estate agent Lachie McLachlan confirmed the four double-unit dwellings that sold were the only ones that had been released to the market.

"We put them up for tender and they sold in the tender period."

Methodist Mission chief executive Laura Black, of Dunedin, said the partial backtrack probably reflected a recent change at a national level prompted by the housing crisis.

"I commend HNZ for being willing to change direction as evidence of need and community demand comes to the fore. I commend them for being sensible in the face of new evidence.

"Hopefully this is part of the Government’s new social housing initiatives ... we look forward to seeing what this new flexibility can do in terms of meeting the needs of people in Dunedin who are struggling for housing."

Selling the houses would contribute to Dunedin’s speculation-fuelled housing boom, she said.

Housing was becoming increasingly unaffordable in Dunedin during a time of global economic uncertainty, Ms Black said.

"Now is the time to hold on to what you’ve got to give yourself room to move."

The latest QV figures show Taieri property values increased by 12.7% in the year to October.

eileen.goodwin@odt.co.nz

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