Hvalfjarðarsveit withdraws plots as buyers fail to proceed

Hvalfjarðarsveit is taking building plots back after buyers proved unable to proceed, as the municipality approved a budget amendment of more than 314 million króna, according to Morgunblaðið, published at mbl.is.

The amendment, approved unanimously by the municipal council last week, covers work on a sports hall, road construction in Melahverfi 3, temporary classrooms at Skýjaborg and a play area in Krossland. The municipality also adjusted the sports hall’s internal rental charge, reducing its available cash accordingly.

Mayor Haraldur Benediktsson said construction of the new Heiðnaberg sports hall was nearing completion. The municipality is updating its 2024 investment allocation to account for inflation, with prices rising by 10 to 11 per cent since then, in line with the construction cost index. He said the project’s cost estimate was broadly holding up after price changes, although the sum was substantial for the municipality.

The hall had been expected to open in August or September, but its opening will be delayed. The delay requires technical changes to this year’s budget, including the internal rental charge.

The municipality had also made plots and the street network in Melahverfi ready for construction. But buyers can no longer meet the terms of their plot allocations, so the municipality is taking the plots back and removing about 30 million króna in expected sales revenue from this year’s budget.

Haraldur said neither individuals nor contractors felt able to take on the projects. Contractors had been unable to secure financing in most cases, he said, although there were some exceptions. “Nothing is moving in the market. New construction is coming to a halt,” he said.

Hvalfjarðarsveit has 840 residents, about 40 per cent of whom live in its two urban settlements.