Jitters after meltdown

The meltdown of two of the country's biggest housing projects has scuttled developments worth $700 million and is forcing many in the property sector to rethink their future.

This week's news of receiverships at the $450 million Kensington Park and the $250 million Whisper Cove, both north of Auckland, has left people wondering which project will fail next.

Tony Alexander, chief BNZ economist, said one outcome was that fewer houses would be built.

"New dwelling supply is falling as more developers go bankrupt," he said.

The collapses have raised issues for the valuation community and left other developers examining their projects.

John Kirikiri, Rodney District Council's deputy mayor, said the collapses were a great concern to both the council and community.

"Our concern is primarily for those local industries, contractors and property purchasers affected by the receivership of Kensington Park and now Whisper Cove. As a council there is not a lot we can do or to say to them.

"But it's a definite commitment of this council that we will work with the receivers to do whatever is possible to arrive at the best possible solution for all affected parties."

 

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