The Government is looking to set up 'partnership groups' with builders and developers to undertake major housing projects

HLC, a wholly owned development subsidiary of Housing NZ, is advertising for builders and developers to become involved in several major Auckland housing projects.

It has issued an Invitation to Participate (ITP) to become involved in several projects, including already announced developments at Mt Roskill, Owairaka, Mangere, Oranga and Tamaki in Auckland.

Many of the projects involve redeveloping Housing NZ land that was occupied by older, lower density homes, that will be replaced by modern higher density housing.

The projects are part of HLC's plan to provide around 50,000 new homes over the next 15-20 years that will be a mix of state houses, KiwiBuild homes and homes to be sold on the open market.

Developers will acquire the land and develop it under contracts with HLC, while builders undertake building work only.

Developers and builders selected by HLC will become part of what the company is calling "Partner Groups", that will be eligible to tenders for building or development contracts with HLC.

"In joining the groups, partners will be given the option to bid on opportunities," HLC's ITP document said.

"Partners will benefit from insight and understanding of the opportunities arising from the development programme.

"One selected, HLC may conduct tendering within the Groups to enter into commercial arrangements for the sale of land or construction of buildings and amenities."

The documents state that the Partner Groups' relationship will HLC will be transferred to the government's new Housing and Urban Development Authority once it is established.

The deadline for responses to the ITM is March 14, and successful respondents will be notified by May 16.

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39 Comments

A win-win proposal would be contracting a renowned Chinese residential building developer to get this job done.

Do not throw tomato at me instantaneously when you see this proposal.

Let it sink it a bit and use your critical thinking ability a bit.

List the pros and cons. Think a bit more.

And you will be convinced that it is actually a win-win proposal.

Chinese quality houses? Yeah, nah.

Let it sink in a bit and think about it critically.

I'd say the best infrastructures built in the recent decade anywhere in the world were by Chinese companies.

Not keen on a Millwater house?

Don't be so .

I was soooo surprised when a friend of mine had 52 issues on his code of compliance application for a prospective purchase.

Leaky Building fiasco round 2 is on the cards.

I'll leave millwater for the retirees. Bugger that commute for a joke.

A bit like the developer saying he is going to build a non-car centric development.. in Drury.

People who live in Drury don't work, so cars are not required.
It will be an exclusive gated community where everything they ever require will be available within a 5 minute walk.

My favorite line...
"I'm quite encouraged by Hobsonville. It proved people don't mind high density living if there's true amenities around them."
Ahhhh... Reeeeaaalllly?

But then it all makes sense...
"Ma founded Made Group in 2016 and counts former mayor Len Brown as a strategic advisor."

Trust me - the people in Drury work and commute throughout Auckland for work. He sells this with a train station - yeah right in how many years? This started with National going all guns blazing to agree this subdivision based on 5000 jobs at Stevenson's Industrial area. Stevenson's have landbanked this wetland for years and so far just putting in 800 houses. The real reason for the publicity is that the Coalition have dumped the Mill Road past Alfriston through to Drury (and then on to Pukekohe) road (not a motorway but a truck bypass) and so they too will be joining the 100,000 cars using the Southern Motorway - or should I say the 200,000 given the massive growth in North Waikato and Franklin. Should never have happened until the infrastructure was in place. Oh and they have extended the subdivision massively. People talk about coastal area - it is Drury Creek for most of it.

Pragmatist,

Well,of course you wouldn’t see sub-standard homes,schools or hospitals built in NZ would you? How many thousands of leaky buildings do you think there are and how many more are still going up?

I have stayed in an apartment in Pudong,Shanghai and neither it nor any of hundreds of other similar apartment buildings were covered in plastic sheeting.

Oh, I don't deny we have our own faliures.. but some of the crud being put up in china is orders of magnitude worse. Did you look at the youtube link I posted?

And we could even ask them to lend us the money to build these houses for us too!

Have you seen how many stalled and unsold projects there are all over the Country already, from retirement villages to apartment blocks, large subdivisions etc etc. This is not a supply issue we face xingmowang and as the developments stall, as they are already and the pace of private building reduces, I'm pretty sure there will be plenty of builders out there if the government decide to keep building their own housing projects.

If there were plenty builders and tradesmen, both labour and national would not make those occupations shortlisted as high demand in the immigration NZ's list.

We rather have a shortage than a Housing BUILDING QUALITY CRISIS

The largest crisis in housing quality in NZ was leaky buildings.

Exactly, once bitten twice shy

Will be interesting to see what happens to supply of builders in NZ with AU housing construction seeming to decline heavily (though I saw this reported the other day).

FYI:
Realestate.co.nz listings

Auckland, all types:
16/1: 12198
Now: 12478

Change: +280 (+21.5/day)

Auckland, House Category only.
16/1: 5898
Now: 6184

Change: +286 (+22/day)

Thanks pragmatist. It has been a bit slower to pick up than I thought it would be but let's see what happens. I wonder if people are holding back until after the last bit of Air B n B cash has been extracted from the holiday season? or perhaps it's bad luck to list before the New Year celebrations? Not seen any auction clearance reports this year, guess we'll get a clearer picture by the end of February.

Auction numbers so far have been so low they are not worth looking at. This week onwards quantities are picking up, Mid Feb looks busy if the places coming up in my searches are anything to go by.

Makes sense. Allow the company to bring in skilled workers on temporary visas, these builders will probably happily work for our minimum wage. Because that's one of the issues, there's not a lot of skilled Labour sitting around idle.

It is a shame that NZ is so unprepared for something like building houses where every single report by any government in the country over the past three decades have emphasised serious house shortage.
This level of unpreparedness (i.e. not enough builders, no serious innovation in house building or material, no innovation as to how finance house ownership for the less wealthy etc) indicates serious incompetence of the NZ leaders (both politicians and the government executive staff) regardless of their political leanings.

No plans, no visions, no nothing. Abject failure. Even the "skilled migrant" scheme has been proven to be an absolute failure. So many chefs and restaurant and retail managers have been granted visa yet so very few builders have been attracted to NZ . So many overseas students who completed worthless courses in dodgy NZ polytechnics and ended up driving taxis or working in hospitality with no real gain for NZ economy and yet a shortage of skilled migrants where they are really needed.

Yet there’s a report on RNZ this morning of more and more builders in Christchurch twiddling their thumbs with nothing to do. Hm...

No builders? What a load of rubbish. Have you seen how many houses have been built in Christchurch over the last few years? And now they are all sitting around doing nothing as there is a massive oversupply of houses there.

Canterbury is still issuing about 400 residential building consents a month. Which after Auckland remains the largest building province in NZ.

And they are just as quickly cancelling developments due to lack of interest.
https://www.stuff.co.nz/business/110055204/milliondollar-christchurch-ap...

Million dollar apartments being cancelled. Is that a sign of a housing surplus or are they just not competitively priced?

Bit of both I suggest, but more the latter. Need to up the yield massively, reduce the sizes, and price lower

There's a market for $1.6mio apartments in Christchurch????

You weren't supposed to trot that line out till late Feb when the clearance rates are in the gutter. ;)

One think that in accepting international students (a considerable number of whom will be interested in calling NZ home and are willing to make significant investments towards this opportunity), NZ could have had a strategic plan. I.e. encouraging programs that would have helped NZ to address both its short-term and long term skill shortages in synchronization with its economic realities and potential. An alignment between these programs and courses and the industries and employers. A streamlined path to residency and citizenship once commitment to NZ is demonstrated. A reward for excellent performance (e.g. reimbursement of tuition fees paid). These people, trained by Kiwis to suit NZ business and industry would have been a much better fit than those imported. Spending their youth in NZ would have allowed them a better chance of integrating with rest of NZ and closer understanding of the kiwi way of life. Who knows, this might have even motivated the NZ young to work harder and focus more on their career development.

My thinking now is that there is no housing shortage, just and affordability crisis. There are a lot of dwelllings on the market but people at the bottom end of the market can’t afford even the ones that should be affordable. I think vested interests are now driving the building boom, including driving the media narrative that there is a shortage. If we are not careful, we’ll end up with way too many dwellings and yes a housing market crash back to historiaxally average affordability. Soft landings are a myth and this market cannot plateau its way to affordability.

There are areas where there is definitely a shortage but it looks more like we are heading into an oversupply of unaffordable houses.

The prices are more driven by bank finance that anything else. Kiwis don't seem to care about the condition of the house they are buying. Only that they buy a house whether it's affordable or not.

I honestly think we’re heading for a 25-30% price decline (which is now being widely predicted in Australia), more in some places, which would make prices affordable again - but a lot of individual and economy-wide pain along the way.

And when the developers go bust because they can't sell the houses, the banks will foreclose and will sell them for whatever they can get, and that's how you get affordable housing LOL

The Hain report, RBNZ capital requirements and the regulation proposed by Government post the Life Insurance report could define Bank Finance and by extension property values for the next couple of years.

Finance is the lifeblood of all property transactions, from residential purchasers through to commercial development - property values are heavily correlated to interest rates in all sectors..I would not want to be a developer holding residential land at the moment. I saw a few go under post 2008 who went long land - when sales stopped so did Bank's interest in helping them!!

HLC have already been in the process of subletting contracts to external builders. .

At this very moment, there are three HNZ projects being undertaken by Mike Greer and Jenian homes in Henderson

I thought there has been an Irish company making kit houses that indicated they could do the lot as pre-fabs at a reasonable cost? Either way as a country we need to stop mucking about and increase housing supply - be that by subsidising housing (KiwiBuild) and/or easing restrictions on building. Much has been said but little has been done.