Planned townhouses to go on sale

Homes on quarter-acre sections may no longer be within reach for many buyers in the Dunedin market but new, low-maintenance, warm townhouses could be.

"We’re finally starting to see some relatively affordable, brand new housing," New Zealand Property Solutions director Denise Casey said.

The company is to market 36 townhouses that will be built in Caversham, 12 of which will go on off-the-plan sale this month.

Ms Casey said the David St site, next to the Kew dog exercise park, was once home to the New Zealand Wax Vesta Company, which produced wax matches there from the early 20th century.

The Grand Vesta project is being developed by TGC Homes.

Prices would start under Dunedin’s median property price of $650,000, she said.

The site is zoned general residential 2 in the second-generation district plan, which allows for medium-density development, and a resource consent has been obtained.

Demolition of existing buildings is due to start before the end of the year and the build could get under way early next year, she said.

The development would be carried out in stages.

The first residents could move in as early as September 2022.

Ms Casey said Dunedin had a shortage of new housing and there had been little development of it in the past few decades.

She had observed "the rise of the townhouse development" in Dunedin, describing them as a modern middle ground between the old quarter-acre dream and apartments.

Her firm had brought seven townhouse projects to the Dunedin market in the past few months.

The properties at a four-unit townhouse development in Young St, St Kilda, all went under offer on the first day in the market last week, despite the Covid-19 Alert Level 3 restrictions, she said.

grant.miller@odt.co.nz