Napier’s Government-Built Apartment Block Remains Empty One Year After Completion

A three-storey, 30-unit apartment block at 124 Wellesley Road in Napier was completed in July 2025. As of July 2026 the building remains completely vacant.

Napier apartments empty a year, 468 on waitlist

The Crown owns the block through MHUD, bought under the Labour government’s Covid-era underwrite scheme guaranteeing a state buyer for pandemic construction. MHUD plans to sell it to a Community Housing Provider (CHP) and has not transferred it to Kainga Ora, the primary social-housing agency.

Napier apartments empty a year, 468 on waitlist

Minister of Housing Chris Bishop oversees MHUD, whose spokesperson handles negotiations with CHPs. Labour housing spokesman Kieran McAnulty has criticised the ministry’s handling. Kainga Ora, directed to focus on renewing stock after a Bill English review, is excluded from tenancy.

The New Zealand Herald

30-flat block sits empty; at the end of March 2026, 468 Napier residents were on the social-housing register, part of a waitlist of 19,704. The NZ Initiative estimates costs $2.2 billion annually, $29,000 per unit.

Napier apartments empty a year, 468 on waitlist

Minister Bishop said he is “immensely frustrated” and that “work is underway,” while MHUD said selling to a CHP “at an appropriate cost” has taken longer than expected and that tenanting via Kainga Ora would be “inappropriate.” Maintenance and security costs are “minimal” but “commercially sensitive.” A review led by Bill English redirected Kainga Ora toward renewal.

The New Zealand Herald

Labour’s McAnulty argued MHUD “has no shortage of tenants” and urged government to let Kainga Ora place people in the homes; B2B News called the situation a “state-sector failure,” citing lack of a fixed deadline and idle asset.

Napier apartments empty a year, 468 on waitlist

Cost of maintaining the vacant building is undisclosed, described only as “minimal” and “commercially sensitive,” and MHUD has not identified a buyer nor set a sale timetable, leaving the vacancy unresolved. Napier MP Katie Nimon was approached for comment but gave no response.

Napier apartments empty a year, 468 on waitlist

• “I am also immensely frustrated at the situation in Napier. I am limited in what I can say at the moment, but I can assure you that work is underway and hope to say more soon.” — Chris Bishop, Minister of Housing

The New Zealand Herald

• “ Opposition Labour housing spokesman Kieran McAnulty said, “MHUD has no shortage of tenants – the Government needs to allow Kainga Ora to put people into these homes.” — Kieran McAnulty, Labour housing spokesman

The New Zealand Herald

• “Finding one who is able to purchase the site has taken longer than expected,” — MHUD spokesperson

Napier apartments empty a year, 468 on waitlist

• “poor governance, centralised decision-making remote from affected individuals, and lack of commercial discipline.” — Dr Bryce Wilkinson, NZ Initiative report author

Napier apartments empty a year, 468 on waitlist

Bishop has pledged to provide details “soon,” and negotiations with CHPs continue, with MHUD saying tenanting will not be considered until a buyer is secured. Stakeholders await clarification on timelines and cost implications.

The New Zealand Herald