The Government has approved three new special housing areas in Nelson in a bid to increase the supply of houses in the South Island city.
SHAs are designed to overcome the slow process of changing zoning of land for residential development. Development is not guaranteed to occur as the land owner still needs to secure capital and council consents to construct the homes.
Building and Housing Minister Dr Nick Smith says the new SHAs in Nelson are Wakefield Quay, a brownfield site with the potential for 12 homes, Haven Rd, a brownfield site with the potential for 30 homes and Farleigh, a greenfield site expected to provide 19 homes.
Amendments to two existing Nelson SHAs, at Ocean Lodge and Barcelona Lofts, have also been approved and allow for an extra storey to be built.
Average house prices in the Nelson region have increased 10 percent in the past year.
Dr Smith says supply needs to increase.
"The issues are not as acute as in Auckland but we need to grow out with greenfields development and also make provision for townhouses and apartments," he said.
Nationwide there are now 213 SHAs with the capacity to provide more than 70,000 new homes.