Wellington’s abandoned Dixon St Flats sold to iwi for $1.04 million
Friday, 15 August 2025
A former Dixon Street Flats tenant scarred by her time at the notorious central Wellington complex says big changes are needed for it to offer decent social housing under new ownership.
On Friday Kāinga Ora said the building had been sold to Taranaki Whānui for $1.04 million.
The Dixon St Flats were abandoned and tenants moved out after the building was no longer deemed fit for purpose in December 2022. The 11-storey building, which housed 117 units, was used for social housing for more than 80 years.
The cost estimate for the earthquake-prone building’s remediation and strengthening was more than $125m, which would amount to more than $1m per apartment, according to RMA Reform and Housing Minister Chris Bishop.
The property was offered to the iwi as part of a Right of First Refusal under its treaty settlement.
Through the process, Taranaki Whānui was able to on-sell the building to a development partner, chief executive Kara Puketapu-Dentice said.
“While Taranaki Whānui will not own or manage the building, we have ensured it will continue to provide housing within the city for the future.”
Details about the partner were commercially sensitive, he said.
A former tenant, Sarah Russell, who struggled to get put into alternative housing that met her needs, said she would not take an opportunity to return to the building, even if it had been offered. “It would haunt me,” she said.
“That was a very rough and hard time, I’m quite happy to close that chapter.”
Her new social housing was nicer but “nothing else has really changed”, Russell said, listing ongoing violence, drugs and gangs. She was hopeful the Dixon St Flats would provide safe and secure housing for the elderly when the building reopened.
“I don't think it should go back to the way it was.”
Daniel Soughtton, Kāinga Ora deputy chief executive Central, said the age, condition and configuration of the building meant it would need significant upgrading if it was to be kept as social housing.
The size of the building and the extent of the work required made the costs of upgrading extremely high, and the holding costs for ongoing security and maintenance were significant, Soughtton said in a statement.
The building was also heritage-listed, which would make it prohibitively hard under normal circumstances to tear down and redevelop.
Despite a recent move by Bishop to allow the demolition of heritage-listed Gordon Wilson Flats after a years-long heritage war, Kāinga Ora said at the time it had no intention to seek the same for the Dixon St Flats.
“As part of our reset we have been looking closely at our property portfolio to ensure we’re spending funds wisely and investing in the right places at the right time,” Soughtton said.
“After carefully considering the cost and complexities of continuing to use this historic building for social housing, we decided selling it would be the best course of action as it would open up opportunities for others to make use of the building.”
The decision would not impact Kāinga Ora’s ability to deliver on the Government’s expectations for new social housing in Wellington, he said.
“We welcome the opportunity this provides for iwi to shape a positive future for this site.”
Bishop said it was “a good outcome for Wellington”.
“Instead of allowing the Dixon St Flats to become another derelict Wellington eyesore, Taranaki Whānui Limited has purchased the property using their right of first refusal under their Treaty settlement. I look forward to seeing what they do with it.”
Tamatha Paul, Green Party MP for Wellington Central, said she supported Taranaki Whānui obtaining back land but was concerned the overall supply of public housing was “rapidly reducing” in the city due to earthquake strengthening.
“On top of this, Kāinga Ora and the Government have been sitting on their hands to build 350 public homes at Arlington and the Government refuses to allocate public housing operating subsidies to Wellington.
“This is all contributing to the devastating and preventable increase of rough sleeping in our city.”
The future of the building was left unanswered as the last remaining tenants were handed out 100-day end of tenancy notices last year.
The Wellington City Council district plan lists the Dixon St Flats as a heritage building, meaning resource consent would be needed for demolition and this would be publicly notified.
Heritage NZ has the building listed as having category 1 status – meaning it has “special or outstanding historical or cultural significance or value”.
“They are considered to be the archetype of modernist apartment blocks in New Zealand,” the Pouhere Taonga Heritage NZ listing says.