Why a former city council depot remains undeveloped

2026-03-08 - 17:27

In May last year, Christchurch’s economic development agency named the developer of a 79-unit subdivision in the city’s south. The old depot for council-owned company Citycare, and a row of social houses, were demolished in 2022 and 2023 to make way for what’s being called Sydenham Yard, to be developed by Fletcher Building, under its Fletcher Living banner, ChristchurchNZ revealed. Billed as an “innovative”, multi-use approach, part of the site would house a new government research facility, while other parts would allow for crucial water and electricity upgrades. Construction of the “sustainably built, affordable, terrace-style” two-storeyed units was expected to start this year, the press statement said. Yet the site remains a jumble of grasses and weeds growing from concrete foundations, temporary fencing and parking. The main players agree there have been consenting delays, with differing explanations. Steve Evans, chief executive of residential and development at NZX-listed Fletcher Building, says its subsidiary Fletcher Residential, which bought the land from the Christchurch City Council (CCC) last year for $6.64m, lodged its land-use consent last July. “This process has taken longer than anticipated, at least in part due to new CCC residential design principles.” The council’s head of planning and consents Mark Stevenson says the consent’s on hold at Fletcher’s request. “This has enabled further constructive discussions between the council and applicant with a view to achieving a better design outcome for future occupants of the site. “Upon agreement, it will proceed to a decision at the earliest opportunity.” The Sydenham Yard development will comprise 79 two-storeyed units, 11 of which must be sold at or below an affordable house price cap. Photo: David Williams Evans, of Fletcher, says: “We anticipate that a land use consent will be issued in the coming weeks.” Building consents for both the civil works and terraced units are also needed. The land-use consent said the first homes were expected to go to market in 2027, with construction of the second stage in 2027/2028. That’s still the case, Fletcher Building confirms. Under the land’s sale and purchase agreement, at least 22 bedrooms (11 two-bedroom units, presumably) must be sold at or below an affordable house price cap. ChristchurchNZ’s Amanda Healy, the head of development and delivery, says the cap is $610,000, below the Real Estate Institute’s median house price at the time of signing, which was $715,000. “The cap can be adjusted relatively to reflect any increase in median house price. There are purchaser eligibility conditions that must be verified to buy these houses, including household income caps of $95,000 per annum for a single purchaser; and $150,000 per annum for two or more incomes in the household.” What’s not to like? The country’s house prices are some of the least affordable in the developed world – so high in fact it’s turning young investors to KiwiSaver and managed funds. Remember, though, the site used to be owned by the city council and contained 26 social houses that had been there for 80-odd years. A sign from Christchurch’s economic development agency showcases a different approach to developing public land in the city’s south. Photo: David Williams The original plan was for 10 council-owned social houses to be built on the site. But that was scuppered because of rising costs, including for construction and insurance, and the council’s long-standing policy community housing should be “rates neutral” – meaning the rent collected should cover the cost of any loans (used to finance construction). In 2024, a paper to city councillors said 10 social homes could still be provided if the successful developer worked directly with community housing providers. Instead, what emerged was the scheme to sell units at or below the affordable house price cap. Community Housing Aotearoa chief executive Paul Gilberd says Sydenham Yard reminds him of the Auckland’s Hobsonville development. “An entire masterplanned suburb build on land designated for the public good and taken under the Public Works Act. Developed in full with not one single public house. “Where is the public good? Does that ring any bells of alarm for people?” These parking signs were left by the Sydenham development site’s former occupier and re-erected. They were removed soon after Newsroom notified Citycare they were there. Photo: David Williams A report released by Community Housing Aotearoa last year said New Zealand had one of the lowest levels of social and affordable housing per capita in the developed world. The organisation wanted councils and the government to provide more “inclusionary housing” – homes that remain permanently affordable – for low and moderate-income households. Last November, the Christchurch Methodist Mission said there wasn’t enough government funding to place the homeless in social houses. Stats NZ data, released last month, said 47,500 more children were living in material hardship last year than in 2022. And the plight of rough sleepers has been highlighted by the Government’s pledge to implement move on orders. Fletcher Residential’s consent application reveals the different types of units to be offered at Sydenham Yard, south of Sydenham Park and west of one of Christchurch’s main north-to-south roads, Colombo St. It’s proposed to have 51 two-bedroom units, and 28 with three bedrooms, arranged in 17 blocks, one of which breaches planning rules for length (37.5m instead of the maximum 30m). ‘The timing for this is not yet confirmed.’ Dr Helen Neil, Earth Sciences New Zealand, about a planned research facility in Christchurch The smallest floor area is 75 square metres, and the biggest 160sqm. Twenty-one of the units will have garages, while the rest will have car parks. Beyond that, there will be 12 dedicated car parks – for a development with 186 bedrooms. Outdoor spaces range from 20 square metres to 69 square metres. The planned development will have three shared cycle storage sheds, for units without garages. No mobility parks or visitor cycle parks are proposed. One road, Living Lane, is proposed to be 4.8m wide, narrower than the minimum 5.5m. Before work can start, contaminated soil has to be removed. From the 1980s, the site was used as a city council works yard, including vehicle workshops, carpentry, sign-writing, and parks services and firefighting units. Contaminants include metals and polycyclic aromatic hydrocarbons. ChristchurchNZ’s Healy confirms Orion and Christchurch City Council have completed their respective electricity and three waters upgrades on the site. The planned Sydenham Yard development sits south of Sydenham Park in Christchurch. Screenshot: Fletcher Residential/Canterbury Maps What about the promised government research facility? Crown research institute NIWA, the National Institute of Water and Atmospheric Research – which was folded into Earth Sciences NZ last July – was granted consent in 2022 for a two-storeyed building to be constructed on the 1.3ha of the Sydenham site it owns. Dr Helen Neil, chief science operations officer for oceans, water and atmosphere at Earth Sciences, says its “present intention” is to develop the site into a research facility. “The timing for this is not yet confirmed.” What is ChristchurchNZ’s involvement in the Sydenham Yard development, now the property’s owned by Fletcher Residential Ltd? Healy says: “The sale and purchase agreement for the site included an agreed programme and staging plan, staging milestones, development of a placemaking strategy with opportunities for collaboration, first right of refusal and failure to develop clauses. “ChristchurchNZ continues to liaise with the developer on progress.”