KiwiBuild delay leaves first-home buyers in limbo

A KiwiBuild development in Wellington has been delayed, and first-home buyers (FHBs) have little choice but to wait for the project to resume amid the housing crisis in New Zealand.

The KiwiBuild project, called Sunset West apartments, is a six-storey building located on the corner of Karo Dr and Victoria St in central Wellington and marked for completion in 2020.

FHB Andrew Lensen shared that he and his partner bought a unit on the third floor of the Sunset West apartments via the KiwiBuild scheme in August 2020. However, they are still waiting for confirmation that they can move into the unit.

“New dates, new deadlines – none of them ever get met,” Lensen said, as reported by Stuff. “It’s a bit frustrating. It’s been a good four months now and still no guaranteed timeline.”

Although the building looks ready for occupation, Developer Simon Nightingale explained that the project has been experiencing delays common in the construction industry after the COVID-19 pandemic hit the country, such as labour and material shortage and old-age pipes.

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National MP Nicola Willis commented that KiwiBuild “had become a synonym for delay.”

“I really feel for these buyers,” Willis said, as reported by Stuff. “When people purchase a KiwiBuild home, the expectation is that the government will deliver on time. Unfortunately, again and again, that has not been the case.”

Housing Minister Megan Woods admitted that the delays were “frustrating,” but argued that the scheme was still worth it.

“While I recognise it’s frustrating not being able to move into your new home on the due date, when buying off plans, relatively short delays of around three to four months are not uncommon, particularly given the current COVID-19-related building challenges that the whole industry is experiencing,” Woods said, as reported by Stuff.

“My message to first-home buyers is that KiwiBuild still represents a good deal, and there are advantages to buying off the plans.”