9. Question No. 9—HousingNICOLA WILLIS (National) to the Minister of HousingQuestion No. 9—Housing9. NICOLA WILLIS (National) to the Minister of Housing: What is the combined value of properties Government housing agencies have purchased since October 2017 and is she satisfied that in all cases these purchases have been good value for money?Hon Dr MEGAN WOODS (Minister of Housing): For the purposes of this answer I've interpreted housing agencies" to be the Ministry of Housing and Urban Development and Kāinga Ora. Since October 2017 they have made purchases via the following programmes: $377.44 million worth of land via the Land for Housing Programme which has contracted or delivered 2037 new homes with the potential for 6000 to 7000 more; $146.4 million worth of KiwiBuild homes representing 321 homes but it is important to note that of that $146.4 million $144.5 million has already been recycled back in; $771 million associated with purchasing approximately 1186 State houses—again it is important to note that this represents just 22 percent of total State houses delivered over the period which is significantly lower than the 67 percent reached under the previous National Government. For further context there were around 85000 homes sold last calendar year in New Zealand and of those Kāinga Ora bought 385. That is 0.45 percent of the total houses sold. In the last two financial years we have also purchased $366.5 million worth of transitional housing delivering 542 homes. Of course within our redevelopments of State housing land we've enabled 1884 market houses to be built. There is also vacant land purchased under the public housing build programme as well as other agencies who will purchase property from time to time such as the Temporary Accommodation Service at the Ministry of Business Innovation and Employment. In answer to the second part of the question if the member means the Government recognising there's a crisis and actually doing something about it and delivering houses then yes I do believe we are getting value for money.Nicola Willis: How many houses could have been built with the more than a billion dollars that Government housing agencies have spent buying up public and transitional houses from the private market?Hon Dr MEGAN WOODS: The very comprehensive list I just went through to the member totalled to $1.5 billion that has been spent over that period which has delivered between 10086 and 12970 homes. If the member is asking "Why don't you just build more houses instead of buying them?" that is exactly what we have rebuilt our housing provider Kāinga Ora to be able to do. Coming off a period of nine years where they failed to deliver any houses the agency became a house-selling agency. We had to rebuild the capacity so we're no longer buying in 67 percent of the houses. In fact we've got that down into the 20 percents and we intend to do even better because we know there is a housing crisis in New Zealand.Nicola Willis: Why did the Government pay almost double the capital value for the Boulevard Motel in Rotorua at a cost of $8.1 million—that is $270000 per motel unit?Hon Dr MEGAN WOODS: The member is taking a very simplistic analysis to this. So the purchase price was $8.17 million including GST. An independent valuation that was provided in June of this year was $8.5 million. The rateable value (RV) was $4.31 million. I would note to the member that residential properties in Rotorua are selling on average 25 percent RV as well as a range of other factors. But I would also note this is in line with previous purchases of motels such as the Takanini motel that had a statutory rating valuation of $1.3 million but the purchase price was $2.65 million—this was of course in December 2016—the Eastland Motel that had a statutory rating value of $910000 but the purchase cost was $2.1 million—this was in June 2017—The Clansman Motel a statutory rating valuation of $900000 but was purchased for $1.84 million—this was also in June of 2017. Then—SPEAKER: Order! Order! I think it's now getting repetitious.Nicola Willis: How many more motels does the Government plan to buy this year and will the due diligence for those purchases include a comparative assessment of how many houses could be built with that cash?Hon Dr MEGAN WOODS: We're looking at a range of options in Rotorua where they make good housing sense. I think as I've just outlined in the answer to the previous supplementary the previous Government—of which the member is a member of that party—certainly went on a bit of a spree as it came up to the 2017 election of buying motels after no action on delivering transitional housing. Where we are buying motels in Rotorua it's where it makes good housing sense and where there is indeed potential for redevelopment of that land for longer-term housing prospects. We're not prepared to just deny there is a housing crisis and do nothing about it.Hon Chris Hipkins: Has the Minister seen any other examples of motels being purchased above their rateable values?Hon Dr MEGAN WOODS: There is indeed a pattern as I said in 2017 as we came up to the election that year—SPEAKER: No no. Order! I think there are some pretty clear Speakers' rulings about Government members not putting up patsies in order to bash the Opposition.Nicola Willis: What investigations has she conducted into an allegation by a real estate agent that Kāinga Ora "Have approached our company and said that they are happy to pay up to $200000 over the asking price if the auction falls through." and can the Minister categorically guarantee that Kāinga Ora are not pumping up house prices in this way?Hon Dr MEGAN WOODS: I heard the same allegation on talkback radio as the member is quoting in the House today. I also invited that caller to get in touch with me and to give me the evidence. I have asked officials if there is any substance to the allegation of the talkback caller. They have said that they can find absolutely no evidence of it but if that member has any evidence of the talkback caller—just like with the homeless man allegedly checking in to the managed isolation and quarantine facility—I ask the member to bring that evidence to me."