Commissioner Louise Taylor has declined an application in Cromwell for the Shortcut Rd traveller’s accommodation business.

Jun Hou and Lihua Zhang had been operating their accommodation business without consent in 2023, and the Central Otago District Council issued them an abatement notice.

After removing the business from accommodation websites, the couple applied for the appropriate consents and opted for a hearing with an independent commissioner in November 2023.

Many neighbours were opposed to the consent and some spoke at the hearing about the potential loss of their neighbourhood character, which they had experienced already before it was shut down.

Nine of the 22 residential units have already been built and the application was for eight to be used as traveller's accommodation.

The remaining two stages of the development was currently under construction, including three free-standing two-storey units and six units within a single-story building. 

Weight was given to the current supply of rental accommodation in Cromwell, and evidence from expert economist Benje Patterson through a report, showed the increase in supply had been insufficient to keep up with population growth.

Between 2018 and 2023, Cromwell’s population expanded by 23 per cent, while its rental stock lifted by only 17 per cent. The statistics were similar in Wanaka and Queenstown.

A considerable proportion of Cromwell residents relied on rental properties for their housing (approximately 863 households, which equates to one in three households as confirmed in the January 2024 report).

The smaller increase in Cromwell’s rental stock compared to its population meant the number of active rental houses for every 1000 residents in Cromwell fell from 92.1 to 87.6 by 2023.

A key matter raised in almost all submissions was the loss of contribution to social companionship, amenity and neighbourhood character that was likely to occur if the units were converted to travellers’ accommodation from residential dwellings.