Kainga Ora to Cut Costs and Sell High-Value Properties in Financial Overhaul

Highlights:

• Property Sales Strategy: Kāinga Ora will sell high-value properties to improve financial stability.
• Cost-Cutting Measures: The agency plans to reduce new-build costs as part of its turnaround plan.
• Government-Approved Overhaul: Housing Minister Chris Bishop has refocused Kāinga Ora on its core social housing role.

Government Refocuses Social Housing Strategy

State housing agency Kāinga Ora is set to implement a major financial restructuring plan, including selling properties in high-value areas and reducing new-build costs. Housing Minister Chris Bishop announced the changes on Tuesday, emphasizing the agency's renewed focus on its core role as a social housing provider.

Financial Turnaround Plan in Motion

At the time of writing, Kāinga Ora’s board, led by chair Simon Moutter, has been working on a turnaround strategy approved by the Government. Moutter, appointed in May 2024, has played a key role in reshaping the agency’s direction following a critical review by former Prime Minister Bill English. The plan aims to improve financial sustainability while maintaining essential housing services.

Property Sales and Cost Reductions

As part of the restructuring, Kāinga Ora will offload properties in high-market areas and focus on cutting new construction costs. The agency's shift aligns with the Government’s broader housing affordability and fiscal responsibility goals. Further updates on the implementation timeline are expected in the coming months.

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