Kāinga Ora is under fire after Wellington's Dixon Street Flats were re-sold for almost triple the price.

The Government housing agency initially sold the flats to Taranaki Whanui earlier this year for just over $1 million.

Nearly three weeks later, the flats had been re-sold to a prominent Wellington developer for $3 million - a move Kāinga Ora has gone on to defend.

Wellington City Councillor Ben McNulty says this won't be good for the taxpayers - but the opportunity cost of potentially bartering for ages was higher.

"From a Wellington perspective, we're just glad to see something happening."

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