After World War II the social makeup of Ponsonby started to change. Many young men did not return from the conflict, some parish women married American servicemen and moved to the United States.  The suburb of Ponsonby was changing and many people moved to the newer and more fashionable developing suburbs.

In 1954 the new parish of Herne Bay was set up, taking away a significant portion of the old parish of Ponsonby.

Planning for the Sacred Heart Church in Vermont Street began just as soon as the Ponsonby Parish was debt free after the construction of the old O'Neill Street church.

Monsignor Kennedy opened a New Church Fund that became known as the "Golden Book".  The first name in the book was Bishop Liston - the first of several donations by him. As the fund grew it was invested and it grew to 32-thousand, pounds however building costs continued to stay ahead of the fund.  The introduction of the pledged giving campaign to the diocese led to making the building of the new church a goal.

  On Sunday, December 8, 1963, a busload of those regularly involved with the parish toured recently built churches in Auckland and made written comments on the features they liked.  Archbishop Liston suggested the new church be built in Vermont Street where the Mission House stood. The plans were drawn up and the cost held at 44-thousand pounds. An adjacent house was purchased and demolished, as was the Mission House. The presbytery was built for 12-thousand pounds.

 On 20 March 1966 a dream going back to the turn of the century was realised, when Archbishop Liston blessed and opened the new church of the Sacred Heart in Vermont Street.  At last: church, presbytery and the two schools were on the same site.

The parish priest at the time, Father Keane, said he hoped for a church that would be devotional, low maintenance and ultra modem.  It was Father Keane whose job it was to take an axe and break up the altar at the old church so it would not end up as a workbench in some workshop.  The church today has a steel frame, concrete foundations, brick walls and a copper roof  It seats 500 people and was designed to allow Mass facing the people.  The four statues in the church all come from O'Neill Street as does the brass sancutuary lamp.  A small white tabernacle that was used on Holy Thursday is still in use in the church and a crucifix in the presbytery also comes from O'Neill Street.

. In 1976 the Sisters Disciples of the Divine Master moved into their convent across the road, completing the Catholic presence in Vermont Street.

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