Developers apply to build 2500 houses

Developers are planning a new suburb of 6000 people in what would be Christchurch's biggest housing venture for decades.

To be called Prestons, the suburb would cover 203ha in Marshland, with 2500 sections and a commercial area. It would house more residents than the Pegasus and Northwood settlements combined and be bigger than Hagley Park.

The plan is a joint venture by developer CDL Land New Zealand, iwi-owned Ngai Tahu Property and supermarket giant Foodstuffs South Island, all of which have been buying farmland in the area.

CDL has mainly Singaporean owners and in 2006 and 2007 needed Overseas Investment Office approval to buy market gardens and grazing land for a total of $18.4 million. It told the office at the time it planned to build 523 houses on the block.

The three companies, under the name Prestons Road Ltd, applied to the Christchurch City Council yesterday for their combined holdings to be rezoned for housing.

The move comes with the country a year into a property slump, with demand for houses and sections low and construction companies laying off staff.

It follows Ngai Tahu's announcement that it will develop Wigram Air Base in west Christchurch for about 2200 houses.

The Real Estate Institute recorded 956 section sales in Canterbury and Westland in the year to June, compared with 1573 in the previous 12 months a drop of 40 percent.

CDL's parent company, CDL Investments, this week announced its half-year net operating profit was down 80 percent to $1.48m because of depressed market conditions and lower section sales.

However, cash reserves mean the company is still able to buy land.

The Prestons Road project would be long term, with many consent hurdles and possibly Environment Court hearings to overcome before any infrastructure or earthmoving work could begin.

Both the 1800-section Pegasus town development at Woodend, north of Christchurch, and the 1100-section Masham block subdivision on former Apple Fields land on the city's western outskirts have taken over a decade to get off the ground.

Ngai Tahu Property general manager Tony Sewell said the Prestons project would take about 20 years and be done in stages to meet market demand.

About 100 sections a year would be sold. The first homes could be built in three years.

"People may wonder, `Why now? There's a hole in the economy'," Sewell said.

"But it's the time for planning. We will be ready when everything comes right again."

Ngai Tahu Property development manager David Schwartfeger said the development was on higher land than other parts of Marshland, and would be built on sandy soil, not peat.

Plans for the new suburb include sections for houses, terraced apartments, a school, shops and a central reserve.

It has been designed by Australian urban planning company Woods Bagot, which is also working on the Wigram project.

- © Fairfax NZ News