Former Dunedin Aaron Lodge site sold   

The agency purchased the site in mid-2021 with the intention of redeveloping it for social housing.

Kerrie Young, Regional Director for Otago, Southland and South Canterbury, says while several development options and layout plans were explored for the Aaron Lodge site, changing market conditions and rising construction costs meant the social housing project was no longer financially viable.

“We’ve been looking closely at our property portfolio to make sure we’re spending our funds wisely and investing in the right places. Selling the property made the best economic sense, and we’re pleased to have secured a buyer.”

Over the past three years, Kāinga Ora has delivered 183 new state homes in the Dunedin area, and a further 51 are expected to be completed by June 2026. Kāinga Ora is also focusing on improving its existing homes, ensuring they are warmer, drier and healthier, the right size and in the right locations for its tenants.