Buyers ditch Wellington KiwiBuild development

by Roxanne Libatique30 Jun 2020

The first KiwiBuild development in the southern part of Wellington used to be popular in the market, with only one in six investors that signed up had a chance to receive a contract. However, the government has revealed that buyers have been trying to get out of the deal.

Ian Cassels's The Wellington Company is responsible for building the Monark apartment complex on the northern border of Newtown, which features 44 KiwiBuild properties that were marketed to be completed early this year.

Over 300 investors signed up to buy the KiwiBuild properties in 2019. However, Housing Minister Megan Woods noted that three people have already cancelled their contracts, while another seven are also trying to pull out of the deal.

“We were initially ecstatic when our names were pulled out of the ballot,” a buyer wrote on a letter addressed to government ministers, as reported by Stuff.

“We loved the idea of the KiwiBuild programme and the guarantee associated with buying from the government as a fast track for first-home buyers to buy an affordable home in an incredibly expensive market. This has now turned into an opportunity that we wish we were never involved in.”

Cassels slammed reports claiming that the development would be finished in July 2020. However, The Wellington Company confirmed on its website that it would finish the project within the year.

With many buyers determined to flee, The Wellington Company decided to give 10 days to withdraw and get deposits back. The period expired on June 16, and the company did not receive any requests from anyone who wanted to back out.

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