Waikato-Tainui Buys $10m Ex-State Homes for Iwi Members

Key Takeaways:

• Waikato-Tainui has purchased 18 properties in South Auckland and Waikato for over $10 million.
• The properties will be sold to tribal members at cost to boost homeownership among iwi.
• If no offers are received by the sale deadlines, the properties will be sold on the open market.
• The properties include seven in Hamilton, four in Papakura, three in Pukekohe, and four in Te Awamutu.
• The total value of the properties is $10.385 million.

Introduction to Waikato-Tainui’s Property Purchase
Waikato-Tainui, a prominent iwi group, has recently acquired 18 properties in South Auckland and Waikato for a total value of over $10 million. The properties, which include 17 houses and one section, will be sold to tribal members at cost, with the aim of increasing homeownership among iwi. This initiative is part of the iwi’s efforts to provide affordable housing options for its members and promote economic development within the community.

Properties and Locations
The properties acquired by Waikato-Tainui are located in various areas, including Hamilton, Papakura, Pukekohe, and Te Awamutu. The properties range in price from $425,000 for a section in St Andrews, Hamilton, to $735,000 for a two-bedroom standalone property in Papakura. The total value of the properties is $10.385 million, indicating a significant investment by the iwi in the region’s real estate market.

Sale Process and Eligibility
The properties are being sold "as is, where is" through a deadline sale process, which allows tribal members to submit expressions of interest based on listing photos. If no formal offers are received by the deadline, the properties will be sold on the open market. This approach ensures that the properties are made available to iwi members first, while also providing an opportunity for external buyers to purchase the properties if they remain unsold.

Background and Context
Waikato-Tainui’s purchase of these properties is part of the Right of First Refusal (RFR) process, which allows iwi to acquire properties from the government before they are sold on the open market. This mechanism has been included in almost every settlement package since 1995 and provides iwi with an opportunity to acquire properties that are significant to their cultural and economic development. The RFR process is an important tool for iwi to assert their rights and interests in the property market.

Previous Sales and Market Trends
Earlier in the year, Kainga Ora sold a handful of run-down houses in Hamilton on the open market, which attracted strong interest from investors and flippers. The sale prices ranged from the low $500,000s to mid $700,000s, indicating a strong demand for properties in the region. The sale of the Dixon Street flats in Wellington to Taranaki Whānui Limited, the commercial arm of Port Nicholson Block Settlement Trust, for $1.04 million, which was under the market valuation, and subsequent resale to a developer for $3.04 million, highlights the potential for iwi to acquire properties at competitive prices and generate significant returns on investment.

Conclusion and Future Prospects
Waikato-Tainui’s purchase of 18 properties in South Auckland and Waikato for over $10 million demonstrates the iwi’s commitment to providing affordable housing options for its members and promoting economic development within the community. The sale process and eligibility criteria are designed to prioritize iwi members, while also allowing for external buyers to purchase the properties if they remain unsold. As the iwi continues to navigate the complex and dynamic property market, it is likely that we will see more initiatives aimed at promoting homeownership and economic growth among iwi members.