A high-profile affordable housing project in Auckland is in receivership.

Receiver Dave Ruscoe has confirmed he's been appointed to the Panama Road Developments Trust, which is behind the Springpark development in Mt Wellington.

Springpark was launched by developer Tony Gapes two years ago and promised 420 terraced homes and low-rise apartments, but has been affected by a string of delays.

The receivership doesn't surprise veteran investor Olly Newland who says the scheme was too ambitious for New Zealand.

"This is not New York or Europe where you can build a hundred, or several hundred houses at once - this is New Zealand and you've got to build according to the market conditions."

He said it's difficult for developers to make money out of building affordable housing because there's just not enough margin in it.