Nelson CBD land

PHOTO: A concept design of the project with Red Art Gallery on the left and the Nelson Evening Mail building on the right. One of the proposed developments in Achilles Ave is shown in yellow. Photo: Supplied / Nelson City Council

Nelson City Council is considering selling two of its central city properties, worth millions of dollars, to Kāinga Ora to create social and affordable housing.

The land in Achilles Ave and Rutherford St is currently a mix of commercial property and car parking but could see the development of 175 homes up to eight storeys high built in the central city.

Nelson Mayor Rachel Reese said the proposal was an opportunity for much needed inner city intensification and a way to create housing security for people.

The larger of the two properties – 69 to 101 Achilles Ave – is almost 4500 square metres and is made up of two buildings, currently leased by 4 Seasons and Community Art Works (CAW) and with two parking spaces. Its current rating valuation is $3.5 million.

The other property – 42 Rutherford Street – is leased by Zumo Coffee House, a cafe and coffee roasters. The 961 square metre property has a rating valuation of $1.36 million.

Land that may be sold for social housing in Nelson - 69 to 101 Achilles Ave and 42 Rutherford Street.

The two areas of land. Photo: Supplied

She said housing is a critical issue for Nelsonians – with house prices rising 88 percent and rents more than 30 percent – in the five years to December.