SHA opponents question demand

The land, among pine trees, south of Cemetery Rd, Lake Hawea, where a 400-lot subdivision is planned. Photo: Mark Price
The land, among pine trees, south of Cemetery Rd, Lake Hawea, where a 400-lot subdivision is planned. Photo: Mark Price
Opponents of the proposed special housing area (SHA) on the outskirts of the Lake Hawea township are not convinced there is sufficient evidence of demand for the ''affordable'' housing it would provide.

The Queenstown Lakes District Council approved the 400-lot development, proposed by developer Lane Hocking, last month [DEC] and it is now up to the Government to give final approval.

One of the stipulations of the Housing Accords and Special Housing Areas Act 2013 is that the minister must be satisfied ''there is evidence of demand to create qualifying developments in specific areas of the scheduled region or district''.

The council has provided the Otago Daily Times with the evidence of demand it relied on when deciding to give its approval.

The information included:

  • Affordability relative to income has decreased significantly over the past two years in Queenstown.
  • In January 2017, average weekly rents in Queenstown were the highest in the country at $550.
  • The median sale price for housing in Hawea increased from $381,000 in January 2013 to $625,000 in December 2017.
  • Total building site capacity available for Hawea was estimated at 610 in the next four to 10 years.
  • A forecast increase in Hawea's usually resident population from 2850 in 2018 to 3850 in 2028.
  • A requirement of 460 new houses by 2028 and 1250 by 2048.

When asked to comment on the evidence, Lake Hawea Community Association development subcommittee chairwoman April Mackenzie said there was nothing in it that proved the need for an SHA.

''The community's point is that we are completely supportive of development inside the urban growth boundary and there is plenty of capacity over more than 10 years.

''In that time we will have updated the town plan and probably allowed for higher density.

''Our view is simple: there is no need to use the [SHA Act] at Lake Hawea.''

Mr Hocking has previously indicated land and house packages in the SHA would start at $460,000.

mark.price@odt.co.nz

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