Over 500 more homes in pipeline for Havelock North – prime location or ‘oversupply’ of subdivisions?

One developer says there appears to be a “gross oversupply” of subdivisions planned around and near Havelock North, which are outstripping demand and could negatively impact ratepayers.

Hastings District Council’s Brookvale structure plan. Subdivision works are well underway in Area A (Stage 1). Further housing plans are in the pipeline for areas B and C. Area A (Stage 2) is owned by multiple land owners, and there are no known development plans. Photo / HDC

However, another developer says Havelock North is a prime location, and sales are tracking well considering the “tight market”.

Development plans for the northeast boundary of Havelock North:

Lansdale Development has plans to subdivide about 200 lots on land zoned residential. New roads and dozens of sections have been completed so far, off Brookvale Rd (near Romanes Drive), and some homes built to date.Greenstone Land plans to subdivide about 60 lots next to Landsdale’s project. That subdivision project is going through the consent process on land near Romanes Drive and Napier Rd, also zoned residential.Metlifecare has plans for a new retirement village with 144 single-level retirement villas and a new “premium care home” with 20 beds off Brookvale Rd, on both sides of Davidson Rd. That project is going through a rezoning process at present.CDL Land has plans to subdivide between 150 and 200 residential lots off Arataki Rd, near the former Te Mata Mushrooms site. A consent decision is pending on that project.Oderings Nurseries CHCH Ltd has consent to build 35 new homes next to Oderings Garden Centre.Much of the land pictured on the outskirts of Havelock North could be developed in coming years. Photo / HDC

Landsdale Development has a long history of subdivision projects in Havelock North.

Landsdale managing director Sam Pepper said Havelock North was a sought-after area.

“It’s prime stuff,” he said.

“The northern half of Havelock North has always been a prime focus [for us].”

Landsdale has consent, and is well underway, on plans to subdivide about 100 residential sections on land off Brookvale Rd (near Romanes Drive). It has called that project Brooklands Estate, which features new roads.

Landsdale also plans to subdivide another 100 lots on undeveloped land just to the north of that project, also zoned residential. Those further plans are currently going through the consent process.

Pepper said he was pleased with how their current release of 38 lots were selling, given the “tight market”.

Greenstone Land owner Tim Wilkins has plans to subdivide about 60 lots on a section of land next to Landsdale’s future project.

He said he was going through the consent process, and would open up that land “when the market is right”.

However, he said, in his opinion, there was a “gross oversupply” of subdivision projects planned around and near Havelock North.

“Most people think that the supply gets so much that the developers reduce the price, but they don’t.

“They just don’t develop, they landhold.”

He said that can lead to a problem, as councils pay to put in infrastructure such as water services, but don’t recoup the cost until developers subdivide and are ready for titles to be issued.

He said a developer’s levy – of about $45,000 per section in Hastings district – was paid when a section was developed and the title issued (ready for a home to be built).

He said it was a “cat and mouse” situation.

“You are only going to develop if the market is right.

“[But] if more land keeps getting opened up, there is less demand.”

Hastings District Council confirmed subdivisions happening in northeast Havelock North were mainly in a greenfields area.

Artist image of the possible subdivision layout for CDL’s plans off Arataki Rd. Photo / EPA

In terms of a developer levy, the council confirmed developers paid a “greenfields area contribution” of $49,969 per new lot, which was paid prior to the council issuing a s224c certificate.

That levy has risen considerably in recent years to help cover new infrastructure costs, and increased capacity for the likes of stormwater.

Meanwhile, Metlifecare operates retirement villages around New Zealand, and has plans for two new villages in Havelock North and Napier.

The Havelock North retirement village is planned off Brookvale Rd, on both sides of Davidson Rd, on land zoned residential and plains production.

The area has been earmarked for residential housing in future in the recently adopted Hastings-Napier Future Development Strategy, and Metlifecare is going through a rezoning process.

“Subject to final masterplanning and obtaining relevant consents, once fully complete, Metlifecare’s new village will comprise around 144 single-level villas, plus an on-site premium care home,” a Metlifecare spokeswoman said.

The care home will feature 20 beds. No timeframes for construction have yet been released.

Major developer CDL Land is currently going through a fast-track consent process for 150-200 residential lots off Arataki Rd, also in the northeast corner of Havelock North, near Metlifecare’s proposed project.

A consent decision on CDL’s project, Arataki, is due by February 20.

CDL Land has been contacted for comment about its plans.

CDL Land is also behind the Iona subdivision (for over 300 residential lots) in the southern part of Havelock North.

Last year, a 35-home development next to Oderings Garden Centre was granted consent, on a 2ha site at 55-57 Brookvale Rd.