ISSUE 35 | JUNE 2025
In this issue, we share how Kāinga Ora is putting its Reset Plan into action.
On design and architecture:
Learn about the thoughtful urban design and innovative construction behind our largest-ever social housing development.
On urban development:
Discover how newly completed waterworks in Porirua are preventing significant amounts of sewage flowing into the harbour.
Our national sales programme:
Read more on why Kāinga Ora is selling some homes and land that no longer meet our current or future needs.
For innovation:
Find out how the Housing Delivery Sytem (HDS) works on the ground at construction sites.
Message from our Chief Executive
Tēnā koutou,
I’m pleased to inform you that we’ve completed another significant step in the reset of Kāinga Ora by finishing our reviews of both our social housing delivery pipeline and our land holdings.
These reviews have been essential to ensuring that we’re only progressing new housing projects that make commercial sense and that we sell land that is surplus to our requirements so we can get on a more financially sustainable footing.
Over the past few months, we have assessed more than 460 proposed social housing projects across the country to make sure that we're getting the best value for money and delivering homes in the areas of greatest need. Doing this has enabled us to take a more considered, strategic view of our project pipeline so we can deliver future social housing projects more cost-effectively.
As a result of that assessment process, we are proceeding with 254 projects. Two hundred and twelve social housing projects that no longer stack up financially or are not in locations where we are trying to deliver more homes, will not go ahead at this stage.
You can see a full list of those projects and their status here.
Today we’ve announced we will write down between $150 million and $180 million in capital that was invested in those projects that aren’t proceeding or have been rethought. This money represents the sunk costs incurred during the initial scoping and planning phases and mainly relates to professional fees. These costs are typical across the wider construction sector in the early stages of a project.
The agency also needs to account for up to $40 million in write-downs for land that has decreased in value since it was originally purchased. We’re unable to provide further details at this stage as we intend to sell the land and need to protect our commercial position to get the best possible price for it.
Writing down these costs now is the right, fiscally responsible thing to do. The savings we’ve made through operating efficiencies, taking a more disciplined approach to spending, and internal changes that have reduced overhead costs mean we can largely absorb the unbudgeted write-downs within our existing budget. Importantly, it will not impact our future results. Our strong underlying operational performance and cost controls give us a high level of confidence we will achieve or exceed the financial targets outlined in our Reset Plan.
Our project assessments
The projects we will not be pursuing were proposed for sites across the country and were at varying stages of progression and planning. In many cases, we are still assessing what happens next for the sites. We may look to rework plans for the site or sell it. For some sites, we may need to wait for future decisions as part of our renewals programme. Where possible, we will bring existing homes on sites back into our letting pool.
It is important to stress that while we have made the call not to proceed with a significant number of housing projects, we still have a big build programme to deliver between now and June 2026 and an ongoing programme of renewal work that will lift the overall quality of our state housing portfolio.
Land sales
We’ve also announced today we intend to sell approximately 20% of our vacant land holdings – about 36 hectares - as we no longer need it for either social housing or urban development work. Selling this land creates opportunities for others to increase the country's housing supply.
We’ll list this land for sale on the open market over the next 12 to 18 months and use the proceeds from sales to reinvest in our housing stock and reduce debt.
Today's announcements are a necessary step in our reset and allow us to move forward with confidence that we’re operating in a more financially sustainable way.
Finally, I want to thank you for your ongoing support. We couldn’t do this work without you – our industry partners and suppliers. We look forward to working closely with you as we continue to deliver good-quality social housing for New Zealanders in need.
Ngā mihi maioha,
Matt Crockett
Chief Executive, Kāinga Ora – Homes and Communities
Largest Social Housing Development Completed
The fifth and final building in Auckland's Community Lane development is complete, delivering 236 new homes on a 9,433 m² site—replacing 45 older state homes.
Watch the video above to see how our largest-ever social housing development balances privacy with shared spaces like lounges and gardens.
“In under two and a half years, our build partner CMP Construction has delivered 236 new warm and dry homes - that’s one every four days."
Nick Howcroft, Director - Delivery Transition at Kāinga Ora
Reinvesting in our Portfolio
Kāinga Ora is selling some properties that no longer meet our current or future needs, so we can reinvest in better-quality housing across the country.
Around 900 state homes – approximately 1% of our portfolio – will be sold over the next 12 to 18 months. The expected return of $400–$500 million, will go towards building new homes that are warmer, drier, the right size, and in the right locations.
Separate to selling social housing properties, Kāinga Ora also sells build-ready land in its Large-Scale Projects to private developers to deliver market housing. You can find more information about our available sites and how you can partner with us by visiting our dedicated land sales website.
Wool Carpet Chosen for New Kāinga Ora Homes
Following a robust procurement process, Kainga Ora will transition to using wool carpet in all new state homes from 1 July 2025.
Wool carpet will also be used in existing homes if the whole house needs recarpeting, for example when renovating older properties. Nylon carpet will continue to be used for single room or smaller patch repairs in homes where nylon carpet is already installed.
We will work closely with suppliers and build partners over the coming weeks to transition to the new supply arrangements.
Rooted in Community: Molley Green Blooms Again
The newly reopened Molley Green Reserve in Auckland’s Roskill Development is now a thriving space for the whole community.
Discover how Kāinga Ora worked with our partners and the local community to shape this inclusive and welcoming green space.
In other news:
The Kāinga Ora Subdivision Plan Guide has been refreshed to provide surveyors and civil consultants with clearer, more detailed guidance on subdivision and land transfer plans, incorporating user feedback for greater clarity.
In March, Te Rā Nui – the Eastern Porirua development completed major wastewater upgrades, replacing 3 kilometres of ageing pipes to prevent 40,000m³ of sewage from entering local waterways, protecting te taiao (the environment) and enabling new homes.
Our Housing Delivery System (HDS) continues to drive efficiency, enhance collaboration and deliver quality social housing. Check out our video to discover how the HDS works in a construction setting.
Kāinga Ora and Fire and Emergency NZ recently marked five years of partnership under our MoU (Memorandum of Understanding), strengthening fire safety in social housing through proactive risk reduction and coordinated responses.
We’re thrilled Kāinga Ora and Beca won the 2024 Spatial Excellence Award for Environment and Sustainability for our Amenity Access Tool, helping reduce transport emissions by assessing properties' proximity to key amenities.
