The Gore District Council is set to make a significant return on its Matai Ridge subdivision development.
The council announced earlier this week it was putting the Matai Ridge subdivision back on the market, looking to fill a substantial gap in the town’s housing and land markets.
It is a re-start for the project, which was shelved three years ago.
The council and southern construction company Wilson Contractors (2003) Ltd have entered into a joint venture which will lead to 35 sections developed on the East Gore site.
The first 15 sections are being released today by First National Gore.
The council bought the 3.6ha of land in March, 2017, for $360,000.
It was formerly owned by United States retired dentist and developer Dr Jack Phillips.
The council put the project on hold in 2018.
It had sold just one section at the time and landbanked the property.
First National Gore directors Graham and Tara Maxwell said the price of the sections would start at $149,000.
Mr Maxwell said the town had been waiting for a purpose-built subdivison to come on the market.
“The timing is right. We have got people wanting to get in and buy a section.
“It is hard to get housing in Gore and find a section which will have services,” he said.
“Gore has had quite good growth in the past few years and people have moved into the town but are finding it hard to get a house.”
He said in 2018 the market was more subdued with an average price of between $220,000 and $230,000 but had now moved closer to $400,000.
Mrs Maxwell said there would be a range of prices for the sections.
Gore Mayor Tracy Hicks said it was good news for the district.
“It has been a long time coming. We just had to get it over the line and provide some welcome relief to people looking to buy sections to build in Gore,” he said.
“Almost daily I would be asked, especially those involved in property, what is going to be done in the property market. How can we help those who want to come to Gore and live here?
“Then you talk to the large employers – they have people who want to move down here but can’t find a place to live. It is just a reflection of what is happening right round the country.
Council chief executive Stephen Parry said Wilson Contractors had been a keen tenderer throughout the history of the subdivision.
The council’s contribution to the joint venture totalled about $1.15 million, he said.
“We bring to the table the market value of the land, detailed engineering designs, resource consent and marketing among other things.”
Under the joint venture, revenue will be shared in proportion to the financial contribution of each party, Mr Parry said.
Wilson Contractors chief executive Steve Osborne said the company had been involved in the project since 2017 and was looking forward to getting started on the construction.
“We are happy that soon we can finally turn dirt,” he said.