Kainga Ora Cost Alignment: 16 October 2024
Looking at Kāinga Ora’s recent apartment development let us do a direct alignment for this exercise alone? 🤔
As a developer, I recently completed a similar project in Auckland. Let’s compare the numbers noting that a lot of mine were build to hold, it was a head contractor model, and I have blurred some of the numbers for legal reasons but it shows a general guide for this purpose alone.
*Blended rate for standard and accessible apartments
**Average for Auckland apartments Q1 2020 – Q4 2021
***Average for Auckland retirement units Q1 2020 – Q4 2021
My Berwyn development has similar quality and specifications to Kāinga Ora’s project, including:
• Lifemark 5* certified accessible units
• Apartments meet Homestar 7.0 requirements (2020)
• Full fire safety compliance for the apartments
• Metal and brickslip cladding for longevity
• Location near public transport
Yet, our per-apartment cost is less than Kāinga Ora’s and aligns closely with published industry averages. Even if we consider the higher costs associated with retirement-style units, the Kāinga Ora project still seems expensive.
As developers, we have a responsibility to deliver quality housing efficiently.
It’s time to have a serious conversation about how public funds are being used in housing development. Are K.O getting a fair deal from those providing services to them?
Plus it was built through a major COVID challenge which does affect the figures.
I don’t think my costs are anything unusual based on what was built and what my intent was.
AND nearly impossible to do apples with apples, this is an ‘attempt’. Industry data comes from interest.co.nz.
I don’t know the break down of KOs costs what is included or excluded.
