Fletcher Building has won a contract to build 237 homes on an 11.5-hectare Crown-owned site in Christchurch, including 89 which will be priced below $400,000, Housing Minister Nick Smith said.
Construction is expected to begin by the end of the year at a build rate of 10 homes a month and a completion date of 2017, Smith said in a statement. The land is on the corner of Awatea and Carrs roads in the southern suburb of Hornby.
Financial details of the partnership weren’t immediately released. Smith said the development will be a mix of affordable and market-priced homes. The Fletcher proposal for the land gave the best value for money for the taxpayer, he said.
The median house price in Christchurch was $461,000 in September.
Earlier this week, Fletcher told shareholders at their annual meeting that a positive trend in residential housing consents in the second half of last year is expected to flow through into housing construction. Chief executive Mark Adamson said the company plans to triple the pace of home building in New Zealand to 1,000 homes a year to capitalise on strong housing demand and flagged the social housing project announced today.
Shares of Fletcher were unchanged at $8.59 and have increased 0.9 percent this year.