Wellington terraced housing development, The Paddington, secures land for $25 million

Thursday, 5 September 2019

Building of the planned $130 million The Paddington terraced housing development in Te Aro, central Wellington, is scheduled to start in early 2020.

A $130 million terraced housing project in central Wellington, The Paddington, has moved a step forward with the securing of a $25 million large parcel of land.

The site covers 7500 square metres on the corner of Taranaki and Jessie streets and is presently home to a car yard.

Developer Thames Pacific plans to build 152 low-rise freehold terraced houses ranging in price from $788,000 to $1.48m.

Real estate agents Colliers said 90 per cent of the terraced houses had been sold off the plans. Construction of The Paddington was scheduled to start early next year and finish in late 2021, Colliers' agent Sam McIlroy said.

Developer Stephen Sutorius, a director and shareholder of Thames Pacific, says there is more appetite for low-rise housing in central Wellington than for high-rise apartments because of high cost insurance for the latter.

Wellington Mayor Justin Lester is chairing a taskforce of local people to talk with the Government about the impact of higher insurance costs on the city.

* Fears rising insurance and body corp costs could make apartment living unsustainable

* Government action demanded as insurance premiums skyrocket**

Sydney-based Stephen Sutorius, a director and shareholder of Thames Pacific, originally from Wellington, said he understood the Wellington market and saw significant opportunities.

There was more appetite for low-rise in Wellington than high-rise given the concern around earthquakes and rising insurance premiums for multi-level apartment buildings.

The terraced houses would be predominantly residential with a handful of live/work accommodation.

The Paddington would include one and two-bedroom units ranging from 68sqm to 76sqm and three-level, three bedroom terraces between 98sqm and 116sqm.

McIlroy, who brokered the land sale, said it was one of the largest land sales in Te Aro for many years.

Wellington City Council has hosted the first of three meetings to give feedback to the government about the effect the insurance price-hikes were having on the city.

The taskforce, chaired by Wellington Mayor Justin Lester, is made up of representatives from local body corporates, engineers, scientists, property developers and insurance specialists.

Lester said last week there were widespread calls at the meeting for the government to reassure homeowners nation-wide.

'There needs to be certainty for the public - not just for [people's] safety but because we want to have broad insurance cover around. So that's one consideration for government.'

The next taskforce meetings are in September and October - with its recommendations to go to government after that.