Blue Sky Property Group director Lyndon Fairbairn said the company, which has previously built in the area, was "not looking to develop in South Dunedin until we see a clear, confident way forward".
Mr Fairbairn’s comments come after members of the community raised concerns about the number of townhouses being built in the area despite increasing concern around flood risks — and wide-ranging plans that could drastically alter the low-lying suburb’s landscape over the coming decades.
The Blue Sky group’s decision to walk away from the South Dunedin area for now follows TGC Homes, which said in March last year it would not build any more townhouses in the suburb due to a potential inability to sell and future reputational damage for the company.
South Dunedin Future, a joint Dunedin City Council-Otago Regional Council initiative, last week released a detailed hazard assessment for the area along with a series of seven 75-year, multibillion-dollar visions to prepare it for climate change.
And though Mr Fairbairn said Blue Sky’s decision was not directly linked to the South Dunedin Future work, he was expecting action or mitigation strategies to be put in place at the council level.
"I think everyone needs confidence of a comprehensive plan here — from developers [to] insurance companies, home owners and buyers," he said.
"I think the main thing is that like most, we are all a bit fatigued of all the talk around it and we’re just keen to see a good, solid, comprehensive action plan."
Blue Sky had more than enough development sites outside the flood zone and was focusing its attentions there, but the area needed investment, from new homes to renovations, he said.
TGC Homes director George Hercus confirmed this week the company would not build in "any known flood or coastal hazard zones".
"We have made this business decision from the outset, not only because we think it is the ethically correct decision, but the reality is we also wouldn’t be able to sell townhouses in these zones anyway."
South Dunedin Community Network chairman Mike Hammond said it was evident "a few" townhouses were being built in the suburb at present.
Whether or not the new builds were flooding inside — "certainly there’s flooding all around them".
A DCC spokeswoman said between January 2022 and December 2024, 183 new housing units had been built or were under construction, and 44 units had been demolished within the South Dunedin Future focus area.
Of those 183 new units, 159 were attached housing, either duplexes or townhouses.
"These developments are in accordance with existing district plan [2GP] provisions and resource and building consent requirements, including in relation to flood risk, minimum floor levels and management of stormwater on a property."
A DCC spokesman said the reports released by the South Dunedin Future programme showed that much of South Dunedin faced a flood risk that would increase over time.
