The modernisation of Dunedin’s city suburbs continues at pace as another "very run down" villa is demolished to make way for a new townhouse development.
New Zealand Property Solutions Real Estate Ltd director Denise Casey said the latest project in Musselburgh Rise was part of a suite of projects under way by Dunedin developer Blue Sky, which was building townhouses across eight sites in Musselburgh, St Kilda and Caversham.
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There would be two blocks of townhouses, four in the front and three in the rear of the section, with some land and elevated views across the suburb, Ms Casey said.
It was the third development by the group in Musselburgh in the past 12 months.
It had already sold two other developments in Musselburgh "only around the corner".
And already New Zealand Property Solutions had sold two of the seven townhouses off the plans.
Typically projects sold within a few days and this latest project had attracted interest both from people looking to downsize and investors, she said.
Prices started at $689,000.
"It’s really new for Dunedin," Ms Casey said.
"It’s only something that’s been able to happen in the last year or so because of the rezoning of land.
"Townhouses are reasonably common, or are very common, in ... developments in Christchurch or Auckland and Wellington — in terms of building higher-density homes in inner-city areas — but it’s still very new, it’s in its infancy, in Dunedin."
There were "a fair few old villas now that are completely past their use by date" and using the land they occupied for higher density homes was a growing trend.
"This is what will work," Ms Casey said.
