This Auckland town centre is dubbed 'derelict' and 'Third World' by locals.

A once-bustling Auckland town centre has sunk into a derelict strip dominated by money lenders, 'for lease' signs and $2 shops.

The local business association receives $130,000 funding annually to boost business in Avondale, but some locals say the West Auckland suburb is sliding backwards.

Although Avondale residents say they are proud of their diverse community, some described their main street as neglected, unsafe and "Third World".

Resident and restaurateur Aaron Carson said he loved the community spirit, but a lack of foresight had crippled its town centre.

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"It's going backwards. The only reason to walk down the street is to get something from a $2 shop, get a loan or get into a fight," Carson said.

Carson, like many locals, said the inner west suburb had incredible potential.

It was a 15-minute off-peak drive to the city and houses were affordable compared to multi-million dollar properties in the city.

Auckland Council recently approved $9.1 million to redevelop Avondale's town centre over the next three years, including town centre improvements and plans to attract new businesses.

Avondale would also be home to one of Housing NZ's biggest developments, with more than 100 state houses planned.

DANIELLE CLENT/STUFF Auckland Council approved $9.1 million to improve Avondale over the next three years, but is it enough to save the 'derelict' area?

However, for residents like Tua Schuster, it was too late for Avondale's rundown town centre.

"[It's] a derelict township and like so many others needs to be knocked down and rebuilt to a modern community."

Jasmine McKenna, who moved to Avondale three years ago, said it was not safe for her children to shop in the main street.

"You want to walk to the shops or parks [but] you have to think twice," she said.

"Avondale's a more viable option for young families as we are forced to move further from the city. We just hope the housing and amenities can match the demand for Avondale."

Avondale resident Willis Robertson said it used to be a great area with a variety of shops many years ago.

MAHVASH ALI/STUFF Avondale Business Association chair Duncan MacDonald is defending his organisation's spending decisions after criticisms the area was rundown.

While other city fringe suburbs like Onehunga, Blockhouse Bay and New Lynn were popular with shoppers, residents said Avondale's centre had fallen off the wagon.

Shop owners criticised the Avondale Business Association for not accomplishing enough for the community.

Mehmood Khan, owner of two local businesses, said the Avondale Business Association (ABA) needed a change of direction.

"[The centre] doesn't even look like New Zealand, it's like a Third World country," he said.

ABA could do more to promote local shops to residents, he said.

"Onehunga was a dead mall, their association has worked very aggressively and it's completely changed. Same thing as Blockhouse Bay village."

Marika Hill Some residents say they don't shop in their own area because it's unsafe and rundown.

Long-standing ABA chair Duncan MacDonald, also a member of the Whau Local Board, defended the spending of its $130,000 budget.

"It is not a ghost town. There are 100 times more people walking the streets of Avondale than there are in [neighbouring] New Lynn."

The ABA worked tirelessly to gain council funding to develop Avondale, and also installed a spider sculpture, added security lighting and petitioned shops to stop selling glue to drug users, he said.

"I do so much work for free in this community, it would sink a battleship," he said.

The ABA received $130,000 Auckland Council funding last year to foster local businesses.

Marika Hill Loan sharks, $2 shops and empty window fronts dominate parts of Avondale's main street.

The budget included $39,000 for office administration, $29,000 for the local Spiderweb newsletter, and $8500 for printing, stationery and an office phone. Promotional costs amounted to $21,000.

MacDonald, who also received an honorarium of $5000, declined to provide a more detailed breakdown of financial spending.

"It's an incorporated society, love. It has its public books. Really any further detailed information belongs to its members."

Auckland Council's development arm, Panuku, confirmed the suburb would receive $9.1m revitalisation funding over three years, with an additional $3.9m over the decade.

The development would include new eateries and businesses at an empty site on Great North Rd.

Mahvash Ali Local MP Deborah Russell, who has her electoral office on the main street, says the area needs some love.

Local MP Deborah Russell said the developments would boost the area and Housing NZ homes would bring new people into the area.

"The area does need some love. If it was just smartened up it would help a lot."

New Lynn, a popular shopping area just a few kilometres down the road, was once shabby, but new developments brought people back, she said.

"It can happen to Avondale. It won't happen overnight, but it will happen."