16 August 2017
Government pays twice the price for emergency housing motels – with two more on the way
Under Labour’s plan to build at least 1000 state houses each year, New Zealand wouldn’t be paying more than double the
valuations for motels to house Kiwis needing emergency housing, says Labour’s Social Development spokesperson Carmel
Sepuloni.
“Under questioning today, the Government revealed it has plans to buy another two motels to house Kiwis in need of
emergency housing, in addition to the four it has already bought.
“Labour has discovered that the Government has paid more than twice the price for these motels, with each purchase
exceeding double the most recent QV valuations. These valuations are between one to three years old, but property prices
haven’t doubled in that time.
“What’s really concerning is that in each of the cities where the motels have been bought, the Government has sold off
much-needed state houses.
“In Gisborne, where there has been a loss of 62 state houses, the Government paid $2,150,000 for a motel valued at
$910,000. In Hastings, where there has been a loss of 14 state houses, the Government paid $1,840,000 for a property
valued at $900,000.
“In Napier, where there has been a loss of 137 state houses, the Government paid $1,850,000 for a property valued at
$910,000. Meanwhile, taxpayers have bought a motel in Auckland for $2,650,000, again more than twice the QV valuation.
“It’s simply irresponsible and poor planning by the Government to be paying these sums for motels while continuing to
sell off state houses.
“New Zealand must do better than this. We can do better than this.
“Instead of selling off thousands of much-needed state houses, Labour would ensure Kiwis in need of warm, dry homes
would get the accommodation they desperately need,” says Carmel Sepuloni.
NameLocationPurchase Price*Latest valuation# unitsCost per unitCimarron MotelAuckland$ 2,650,000 $ 1,300,00011$240,909Eastland Motor LodgeGisborne$ 2,150,000 $ 910,00019$113,158Clansman Motor LodgeHastings$ 1,840,000 $ 900,00010$184,000Napier Garden MotelNapier$ 1,850,000 $ 910,00013$142,308 Totals $ 8,490,000 $ 4,020,00053$160,189
* Response to Parliamentary Written Question 06060 (2017)