Yesterday the Auckland City Council unveiled plans to redevelop the Wynyard Quarter on the waterfront. A key part of the redevelopment will be high-end apartments and townhouses. And to make sure that they sell, Auckland City Council is planning to subsidise them:
Developers could receive ratepayer subsidies to build $1 million-plus apartments at a swanky housing development at Wynyard Quarter on the Auckland waterfront.
Subsidies along the lines of a secret deal struck in 2009 for the new $132 million ASB Building at Wynyard Quarter could be worth thousands on each apartment.
[...]
At Wynyard Quarter, the starting prices for the smallest apartments, on what will be leasehold land, will start at $500,000. The average price of apartments and townhouses will be $1.2 million to $1.3 million and larger ones will cost more than $2 million.
The apartments are expected to appeal to wealthy couples, or couples with one child. There are no plans for affordable housing on the council-owned 2.76ha development site.
So basically this is a millionaire's row. People who can afford these apartments don't need subsidies, and shouldn't get them. There are far better uses for ratepayer's money than on handouts for the rich.
