- Hon Chris Bishop
The Government has approved a plan to reset the Kāinga Ora Arlington development, which will deliver 104 new social homes in central Wellington and provide up to $6 million to Wellington City Council to support housing services for vulnerable people, Housing Minister Chris Bishop has announced.
Following indicative Cabinet approval, Kāinga Ora will finalise a detailed business case for its Arlington site, which is owned by Wellington City Council and leased back to Kāinga Ora as part of a long-term agreement for social housing delivery. Construction is expected to begin in 2027 and finish in 2029.
“Providing a long-term pipeline of quality, fit-for-purpose social housing in the right places, for the people who need it most is an essential part of addressing New Zealand’s housing shortage and wider infrastructure deficit,” Mr Bishop says.
“Subject to Wellington City Council approving a variation to its existing lease, the Arlington development will include 55 one-bedroom apartments, 37 two-bedroom apartments, and 12 four-bedroom terrace homes, helping meet demand for both smaller homes and family-sized housing in the suburb of Mount Cook.
“Every one of these homes will provide a warm, modern place to live for people who need the security and stability that good social housing provides.
“The Kāinga Ora Arlington development has had something of a tortured history that needed to be resolved with a more cost-effective approach.
“The previous plan for 301 apartment-style homes at Arlington was paused in July 2023, just before the change of government, because costs had blown out from the $296 million originally budgeted in 2021 to an extraordinary $419 million.
“That cost escalation would have led to an eye-watering cost of around $1.4 million per apartment, prompting a redesign of the development.
“For commercial reasons, Kāinga Ora is unable to release the estimated cost of the proposed new development. However, it is expected to cost significantly less than the original project and will be funded through Kāinga Ora’s renewals programme, subject to confirmation through the detailed business case.
“That programme reinvests proceeds from the sale of older state homes that are no longer fit for purpose into new homes that better meet tenants’ needs.
“While the process has taken longer than anyone would have liked, I am pleased Kāinga Ora has thoroughly explored the options for the site, ensuring the redesigned development delivers quality social housing while representing good value for money.
“Subject to the detailed business case and relevant approvals, construction is expected to begin next year and be completed in late 2029.”
Mayor of Wellington Andrew Little says the reset also opens new opportunities for the rest of the Arlington site.
“Subject to Council’s final approval, the renewed Arlington plan will deliver social housing on part of the site, with the remainder returned to Wellington City Council to be used for more homes for Wellingtonians.
“That creates the potential for additional housing, including from private developers and community housing providers, helping maximise the use of this well-located site and deliver more homes for Wellingtonians.”
Alongside approval for the next steps at Arlington, the Government will provide a grant of $6 million to Wellington City Council for distribution through its community grants programme to support housing services that help vulnerable people access, sustain and thrive in housing.
“Building homes is only part of the solution. Strong local support services help people maintain stable housing, improve wellbeing and build better futures for themselves and their families,” Mr Little says.
“This Government is fixing the basics and building the future by delivering more quality homes for people who need them most,” Mr Bishop says.
