In a city grappling with a severe housing crisis, a former holiday park purchased by Kāinga Ora for NZ$4.15 million remains undeveloped and vacant four years after the acquisition.
The site, located on Kaikorai Valley Rd, was intended to be transformed into much-needed social housing, but today it stands neglected, covered in weeds, and enclosed by temporary fencing.
The purchase of the 34-room Aaron Lodge Holiday Park by Kāinga Ora, New Zealand’s housing agency, in October 2020 sparked hopes for a swift development to address the city’s escalating housing needs. However, as winter approaches, the property’s inactivity highlights the broader challenges facing Dunedin’s housing sector.
Homelessness in Dunedin has become a prominent issue. The city’s NZ$104 million revamped central business district sees numerous individuals seeking spare change on nearly every block.
Further south, near ‘The Oval’ reserve, an area known as ‘Tent City’ has emerged, where up to a dozen tents are clustered near the railway line, providing makeshift shelter for the homeless.
The Ministry of Social Development’s housing register underscores the growing demand for public housing across New Zealand. The number of people on the waiting list surged from 11,067 in March 2019 to 25,527 in March 2024, as reported by RNZ.
In Dunedin alone, the list has grown from 156 to 459 over the same period, though the exact number of people living rough remains unknown .
Rising living costs, particularly rent, and the closure of several boarding houses have exacerbated the housing crisis. These factors have created a severe shortage of affordable housing options for those in need. Despite this urgent demand, the former holiday park remains undeveloped.
According to Mel Park, Kāinga Ora Otago Southland and South Canterbury acting regional director, the property was initially cleared of relocatable cabins and chattels from the remaining buildings.
However, the buildings, which were designed for commercial use, do not meet current residential standards without extensive repairs and upgrades. Additionally, essential services such as gas, water, and electricity have been disconnected.
The site was previously leased by the Southern District Health Board (DHB) as a quarantine facility between December 2021 and June 2022. During this period, only 35 people quarantined at the facility, costing the DHB $34,000 to operate.
After the lease ended, maintaining the buildings’ compliance with the Building Warrant of Fitness (BWOF) was deemed infeasible, leading to plans to clear the site for redevelopment.
Kāinga Ora continues to explore options for the Kaikorai Valley Rd property. Park noted that the rising costs facing builders and developers nationwide, along with a markedly different economic environment, have significantly influenced their decision-making process.
“We are committed to finding a viable solution for this property,” Park said. “However, the economic challenges and increased costs have made it a complex issue to address.”
As Dunedin struggles with a housing crisis, the vacant holiday park symbolizes the broader difficulties in providing adequate housing for those in need. The city’s residents and local authorities await further developments, hoping that the site will soon contribute to alleviating the pressing housing shortage.
For more information on Kāinga Ora’s projects and updates, visit Kāinga Ora.
