Million-dollar mud: $13m spent on flood-damaged homes in sought after Auckland suburb

Monday, 21 July 2025

Auckland central's Grey Lynn park before and after the flooding.

Seven flood-damaged Grey Lynn properties bought by Auckland Council as part of its buyout scheme have cost more than $13 million.

But it’s not yet known what the land in the sought after neighbourhood will be used for.

Around 1200 Auckland properties, including 14 properties in Grey Lynn, were deemed to have a category three risk factor following the January 2023 floods.

Those properties were deemed to pose “intolerable risk to life”, with no way to reduce that risk.

A property on Cockburn St which was bought and demolished as part of the buyout scheme.

Under the voluntary buyback scheme, the Auckland Council offered to buy uninsured properties for 80% of their value as of the day before the weather event, and 95% for insured properties, less any insurance payout.

Properties in Grey Lynn park were badly hit when the region was - as Auckland Emergency Management described it - “clobbered” with rain on 27 January, 2023.

One couple described how they and their sons, aged 6 and 9, were rescued by kayak through the second-storey window of their Dryden St property, as flood waters climbed up their stairs.

A house in Grey Lynn following the devastating 2023 Auckland Anniversary Weekend floods.

“My kids were so scared,” Dick Johnson told Stuff a few days later.

“It was getting higher and higher, and we didn’t think we'd get out.”

Johnson’s property, his neighbour’s and five others on Hakanoa and Cockburn streets have been bought by Auckland Council for a total of about $13.8 million.

One couple and their children had to escape their home via a second-storey window after flood waters blocked off their stairs.

Collectively, the seven properties now have a reduced rateable land value of $1.9m.

Some of the houses have already been demolished, leaving behind bare, grassy or muddy plots in otherwise tightly packed residential suburbs.

Auckland Council group recovery manager Mace Ward told Stuff no decisions had been made regarding what the properties will be used for in the future.

Some of the now bare properties will be used for council services.

“We’re hoping to share more detailed updates on specific properties next year as we work through the next phase.”

But given how expensive the buyout programme had been it was key the council delivered good value to ratepayers, Ward said. Auckland Council and the Government had earlier agreed to split the estimated $774m cost of buying the properties.

“Where it makes sense, we’ll look at how some of the land might support essential council services. This can save us money in the long run by avoiding the need to buy more land elsewhere,” Ward said.

It is expected about half of the properties bought during the buyout scheme will be retained by the council.

“But holding on to land comes with ongoing costs. So, if a property isn’t needed for council services or to manage a known hazard, we will look at options for selling it.”

“In some cases, a site might be able to be made safe for future redevelopment by making major changes to reduce the risk. That could include building on a safer part of the property or redevelopment after a flood protection project is complete.”

Safe, spare land could also be sold to neighbours to expand their back yards, or in rural areas, used for grazing animals.

“We’re also working closely with local boards and mana whenua to explore possible community uses, like parks or open spaces.”

It is expected about half of the category three properties would remain under council ownership, including any which cannot be sold for safety reasons.

It is expected the buyouts, alongside projects which will help prepare the region for future extreme weather events, will cost nearly $2 billion.

CORRECTION: This story has been updated to say that both insured and uninsured homeowners with category three properties were eligible for the Auckland Council buyout scheme. Updated 10.30am, 22 July, 2025.