The number of houses in the Northland town of Dargaville could expand by nearly 20 per cent with the approval of a new development.

The Awakino Precinct private plan change has been approved by the Kaipara District Council, allowing a subdivision of up to 384 new homes on a 39ha rural block.

The development on Awakino Rd, just north of the existing township, was first proposed by Moonlight Heights in 2022.

There was a mixed response from Dargaville residents, with nine initial submissions opposed, nine in support and a further three supporting with conditions.

Those opposed were worried about the development’s impact on existing infrastructure, specifically water supply which is frequently restricted in summer.

The impact on traffic on Awakino Rd, lack of stormwater control, increase in rodents, wastewater treatment so close to the Awakino River and lack of heritage assessment were also concerns raised.

Fire and Emergency NZ opposed the development, saying it did not allow for an adequate supply of water for firefighting and there was inadequate vehicle access for firefighting on some homes.

But residents in support of the proposal said they supported the growth of the town and prosperity the development could bring to the area.

With just 2000 private dwellings in Dargaville, according to the 2018 Census, the development could increase homes in the town by 19 per cent if they are all built.

Kaipara house prices jumped 7.2 per cent in the year to March 2024, more than three times higher than the national average of 1.9 per cent, according to Infometrics.

The number of Kaipara families needing help with accommodation has also jumped. The Ministry of Social Development’s housing register shows there were 78 Kaipara families waiting for a state house in March 2024, more than double the 33 families in March 2019.

The private plan change was considered in 2023 by a hearings panel including independent commissioners Dr Lee Beattie (chair) and Melean Absolum, along with deputy mayor Jonathan Larsen.

The panel recommended the plan change be approved with minor changes, and the full Kaipara District Council agreed on February 28.

Mayor Craig Jepson said the development opens up much-needed residential land and is sorely needed by residents and businesses in Dargaville.

“Accommodation in Dargaville is tight and scarcity of rentals is pushing prices up and up,” he said.

“We know local businesses struggle to recruit staff due to the housing shortage.

“Businesses have been asking and asking for more land for housing. It’s very difficult to attract professionals to work here when they can’t find somewhere to live,” Jepson said.

“Opening up this land for housing will provide opportunities for growth and development in Dargaville, and have positive economic impacts on the wider district.”

Moonlight Heights is a company directed by former The Warehouse director Peter Glen Inger and Dargaville’s Craig Williamson. It described itself as a company led by a “prominent local family who are passionate about providing high-quality residential housing within Dargaville”.

The private plan change will come into effect from June 25.

Denise Piper is a news reporter for the Northern Advocate, focusing on health and business. She has more than 20 years in journalism and is passionate about covering stories that make a difference.