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  • Originally posted by SBQ View Post
    Well I have some interesting news. I was at an open home in Aidanfield talking to the real estate agents. They say the market has gone soft and that many places are selling well under GV. They informed a house on Sparks Rd that had a GV of $1.8M sold for less than $900K. There were many examples of these high price tag homes that are not selling because the $ is simply not around.

    If the Auckland market tumbles.. expect more tumbling in the Chch real estate market. Thing is, i'm not sure if my wife could wait that long in buying a small place for her parents. I'm looking at a 144m2 size 3 bedroom house built in 2010, 398m2 size section, with a GV of $485K asking $519K. Seems high to me. Your thoughts? Another house around the corner, brand newly built, 171m2 (but has a funny double size garage which is more like a 1.5 size garage) sold for $589K back in Oct. I'm really hoping the market is getting soft. The CGT needs to kick in so more houses go up for sale.
    What area? Seems a lot of money for a pre-2011 home on such a small section, when you can buy brand new for less (eg. look at Karamu-Riccarton Park, you can get a new 3 bedder for $489k. Same in the Halswell and Wigram subdivisions). I'd look at buying a post 2011 home if I were you, otherwise you run the risk of a dodgy earthquake repair issue popping up in the future.

    Don't drink and buy shares in a downtrend, you bloody idiot!

    Comment


    • Went in to sign up the new house today, and my lawyer told me he just bought one as well, for $145k below what the vendors paid in 2015. I thought I did well getting mine for 2016 prices! Maybe I should have paid him to negotiate for me :-)
      Don't drink and buy shares in a downtrend, you bloody idiot!

      Comment


      • Originally posted by KW. View Post

        What area? Seems a lot of money for a pre-2011 home on such a small section, when you can buy brand new for less (eg. look at Karamu-Riccarton Park, you can get a new 3 bedder for $489k. Same in the Halswell and Wigram subdivisions). I'd look at buying a post 2011 home if I were you, otherwise you run the risk of a dodgy earthquake repair issue popping up in the future.
        How on earth can they be allowed to build single story on 218 SQM. You couldn't pay me to live there. For that kind of money I'd sooner go to a SUM retirement village

        https://www.trademe.co.nz/property/r...4ffb2018de-002

        Comment


        • Originally posted by KW. View Post

          What area? Seems a lot of money for a pre-2011 home on such a small section, when you can buy brand new for less (eg. look at Karamu-Riccarton Park, you can get a new 3 bedder for $489k. Same in the Halswell and Wigram subdivisions). I'd look at buying a post 2011 home if I were you, otherwise you run the risk of a dodgy earthquake repair issue popping up in the future.
          The listing: https://www.totalrealty.co.nz/listings/TRC19012 and https://homes.co.nz/address/christch...crescent/70y8E

          2016 GV $485K. Yes there are plenty of other brand new places way down along Awatea Rd (2 or 3 bedrooms) but their location is not idea. Along a noisy and busy road where heavy trucks travel on and i'm not happy having reverse the vehicle out on such a busy road. Many of them still sit empty for that reason. What we like about this listing is the location is near where we live and it will be used by extended family.



          Originally posted by MajorMoke View Post

          How on earth can they be allowed to build single story on 218 SQM. You couldn't pay me to live there. For that kind of money I'd sooner go to a SUM retirement village

          https://www.trademe.co.nz/property/r...4ffb2018de-002
          My cousin's wife bought in Wigram Skies near the old air force base which is the same type of layout and spec. Where the single car garage is attached together for both dwellings. She bought about 2 years ago for around $450K - 2 bedroom so a lot smaller.

          As for Karamu-Riccarton Park. 108m2 is a lot smaller than 144m2 - while 3 bedroom size, no ensuite and only single car garage (vs 6m x 6m double garage in the 144m2 listing). The wife would not be happy with the internal toilet (not along an exterior wall where you can open a window to ventilate. Doesn't seem sensible to have 2 toilets so close in position (would be more meaningful if the toilet was part of an ensuite.

          $519K may be a fair asking price? Sure new is nice but it's really tough to re-consider building. We own an empty section nearby but recent RMA and code changes make building even more restrictive (especially if you want to go 2 story). The margins are thin for these group builders so i'm not sure how Jacinda Ardern is going to fix the building industry ; how else can she make houses more affordable when building costs are at the maximum?

          Comment


          • Originally posted by SBQ View Post

            The listing: https://www.totalrealty.co.nz/listings/TRC19012 and https://homes.co.nz/address/christch...crescent/70y8E

            2016 GV $485K. Yes there are plenty of other brand new places way down along Awatea Rd (2 or 3 bedrooms) but their location is not idea. Along a noisy and busy road where heavy trucks travel on and i'm not happy having reverse the vehicle out on such a busy road. Many of them still sit empty for that reason. What we like about this listing is the location is near where we live and it will be used by extended family.

            $519K may be a fair asking price? Sure new is nice but it's really tough to re-consider building. We own an empty section nearby but recent RMA and code changes make building even more restrictive (especially if you want to go 2 story). The margins are thin for these group builders so i'm not sure how Jacinda Ardern is going to fix the building industry ; how else can she make houses more affordable when building costs are at the maximum?
            Homes.co.nz have it wrong - RV is $455k according to Quotable Value. Price also seems high considering you can buy a 4 bed, 2 bath in Aidenfield under RV for $559k, and thats been on the market for a month and still not sold. https://www.trademe.co.nz/property/r...03f085b6c7-002

            For $20k more you can get a 2 year old home https://www.trademe.co.nz/property/r...6bd2b504bf-002
            And its not a Mike Greer one either (they have a reputation for having the lowest quality builds). And who knows, with 170 houses in Halswell currently on the market, they are probably prepared to negotiate :-)

            Don't drink and buy shares in a downtrend, you bloody idiot!

            Comment


            • Originally posted by KW. View Post

              And its not a Mike Greer one either (they have a reputation for having the lowest quality builds). And who knows, with 170 houses in Halswell currently on the market, they are probably prepared to negotiate :-)
              And they are still continuing to build out Rolleston way. There is no way I would touch any of these new housing developments.

              A person I know is building 220sqm for $1600 a sqm. Seemed a bit cheap to me.

              Comment


              • Originally posted by MajorMoke View Post
                And they are still continuing to build out Rolleston way. There is no way I would touch any of these new housing developments.

                A person I know is building 220sqm for $1600 a sqm. Seemed a bit cheap to me.
                The Mike Greer Kiwibuild house in Marshland is for sale at $459k. However, the one next door to it (also a brand new Mike Greer build) sold late last year for $422k. Be prepared to negotiate hard. No one is paying advertised prices, other than the Kiwibuild chumps.
                Don't drink and buy shares in a downtrend, you bloody idiot!

                Comment


                • Originally posted by MajorMoke View Post

                  How on earth can they be allowed to build single story on 218 SQM. You couldn't pay me to live there. For that kind of money I'd sooner go to a SUM retirement village

                  https://www.trademe.co.nz/property/r...4ffb2018de-002
                  Holy Moly! I looked at the floorplan and laughed at the massive out of scale car they had drawn in the garage, out of proportion to the rest of the house. Until I realised that wasn't out of scale at all. Whooey.
                  TBH it's not a bad option for a young kiwisaver couple to get a modern house that's not in the boonies. I just hope they are 4.5ft minimalists.

                  Comment


                  • Originally posted by nextbigthing View Post

                    Holy Moly! I looked at the floorplan and laughed at the massive out of scale car they had drawn in the garage, out of proportion to the rest of the house. Until I realised that wasn't out of scale at all. Whooey.
                    TBH it's not a bad option for a young kiwisaver couple to get a modern house that's not in the boonies. I just hope they are 4.5ft minimalists.
                    108m2 is small for 3 bedroom house. You can bet that those bedrooms won't be 3m x 3m in size. I believe in 'Eldery Person Unit' / Over 60s builds the limit is 120m2 in size but the ones i've seen, it's usually only 2 bedrooms they can fit in. The scale issue is VERY common among group builder drawings. The software they use to do the CAD the designer always puts things out of scale to make the 1st market appeal impression so customers can sign up quickly.

                    Some simple math $489K - if we assume section price of $200K, this leaves the building cost of $289K for 108m2 size house. This works out to be $2,675/m2 - for a house of this caliber, that doesn't seem much.

                    Comment


                    • Originally posted by MajorMoke View Post
                      And they are still continuing to build out Rolleston way. There is no way I would touch any of these new housing developments.

                      A person I know is building 220sqm for $1600 a sqm. Seemed a bit cheap to me.
                      Yes and new subdivisions propping up in Lincoln. Chch is nothing like Wellington or Auckland where they simply just can't build out. I've always been weary buy way out because of the risk when the whole economy takes a tank and say NZ gets an exodus of migrants to Australia (my elders have told me it's happened in the past). The $1600 price tag is too cheap (that's pre 2010 pricing). What I do notice is some group builders quote on such a low price but do NOT factor the cost of the foundation. Virtually all TC2 and TC3 land requires rib/raft foundation and that is not cheap (would easily boost the $1,600 figure to $2K). Wifey is close friends with the owner of Faye Homes and he's told me last year the lowest cost he's working on is $2,200 / m2 for basic builds on TC2. If TC3 then things get really expensive due to land remediation work.

                      My problem is i'm not sure how long wifey can hold out to before her insanity gets her, as she really wants her parents out in their own place. I know the market is turning soft so if I can hold out for another year or so that would be great. The global trend is that the Chinese laundering $ into real estate has come to an end (ie. Vancouver BC, Sydney, and Auckland) so it's never been clearer that we should see a major correction.

                      I must admit, the 2 previous TradeMe links is a good example of comparative pricing. For an extra $40K you get the full size lot, 4 bedroom, 2 story. The issue is for most, sellers don't have a clue and want the highest price possible. So a lot has to do with the realator relying the information to the seller that the market isn't there for those prices.

                      On my empty lot, doing some rough calcs. if I can budget $2,500/m2 build cost, on a 130m size house + half of the DC fees, it would be well under $500K. So why should I pay $519K on a 9 year old home that doesn't have much sun orientation, deep in the back section? Even if I were able to get it at $450K, something tells me I would have a much better house by building it. Something I will express to the realator later on. But of course, what my view doesn't mean anything ; because i've noticed there's ALWAYS someone unknowing that will pay the much higher price thinking they got a bargain.

                      Comment


                      • Originally posted by SBQ View Post

                        On my empty lot, doing some rough calcs. if I can budget $2,500/m2 build cost, on a 130m size house + half of the DC fees, it would be well under $500K. So why should I pay $519K on a 9 year old home that doesn't have much sun orientation, deep in the back section? Even if I were able to get it at $450K, something tells me I would have a much better house by building it. Something I will express to the realator later on. But of course, what my view doesn't mean anything ; because i've noticed there's ALWAYS someone unknowing that will pay the much higher price thinking they got a bargain.
                        Thats the approach I took. I'm not paying over market because the vendor built the house. If you know what you can build for, then that caps the price you are prepared to pay. And I told real estate agents that. Now in my area there are two types of properties - those that are selling under the current build cost, and those that are still sitting on the market waiting for an idiot to come along. As the market cools, there are less and less idiots out there.

                        I suggest you go talk to one of the group builders like Signature and get an idea of how much it will cost all up to build what you want. And then depreciate that amount down for older houses on the market. You should be able to buy an older home for 2015-2016 prices. Just keep an eye out for post 2011 builds popping up in the areas you want. The value of post 2011 properties will hold up a lot more than pre-2011 ones, especially as those EQC repairs age. I've found that those properties taking the biggest price hits are the pre-2011 homes, as people paid so much money for anything still standing in the few years after the earthquake. There are now so many new builds, that those older homes are coming down much quicker in price. Thats why my lawyer got $145k below the 2015 sale price - those homes simply cant compete with the new builds any more. So go offer RV and tell them if you have to pay more than that you would prefer to build it yourself, or buy something better like the 4 bedder on the full size section. Go hard. I have a feeling the real estate agents are getting quite used to it now LOL
                        Don't drink and buy shares in a downtrend, you bloody idiot!

                        Comment


                        • KW, thanks for the reply. I agree there's tons of new houses going up in Christchurch and I can't see the demand there as so many of them newly built, sit empty. The price has got to come down however, the cost of building doesn't come down.

                          My situation is kinda in a pickle as there's a bit of urgency getting the inlaws into their own place. I do not think the wife could wait 2 or 3 years to have a new place built. We've gone through 3 full re-designs of houses on our section and have told her we will have to start again due to changes in the RMA and CCC new zoning requirements. The kicker was it use to be for single story builds the site density of 40% was allowed. Now it's scaled back to a maximum of 35% leaving not much of a house to build when we sub-divide. While CCC is trying to increase 'intensification' density, they're making it impossible to do so. New RMA states minimum 18 titles per hectare so without allowance of roadways and footpaths, section sizes 555m2. No wonder we're seeing new sub-divisions with tiny size sections.

                          I've received an email from the real estate agent, "We will let the owner know of your interest but it is well below her expected sale price and we gave her that price based on comparable sales in the area."

                          So i'm not anxious to rush it - wifey also agrees the price is way too high. Overall it's not really a great place; poor sun orientation ; a rental property ; deep in a back section with 4 other properties.

                          Winter time is setting in and typically less houses go up for sale. I do know not far on the same street is a full size lot 3 bedroom house that will go up for sale. However I know for a fact the current owner paid $635,500 back in 2013 which was insanely high at the time:

                          https://homes.co.nz/address/christch...crescent/lel0e

                          We've spoken with the owners (that live in Thailand) and he was not friendly when I proposed house plans to build next door and he said in no way he would be willing to sign off a resource consent (for which our architect said it was a minor 'recession plane' intrusion). Of course he gladly mentioned we could buy him out. I think he may be surprised that he won't get $700K for the place. Oh and interesting to note that the homes.co.nz details is incorrect on the # of bedrooms. It's actually only a 3 bedroom house with a study room, but the rooms are of generous size - 248m2 total house size. I'm quite certain they have written NZ off as they have no intentions of coming back to NZ and the recent law change banning foreigners from buying houses. I did recall him telling us he wanted to sell and buy a place closer to town where his son could go to uni. But that fell through as his son didn't have academic good standing and couldn't get his student visa renewed.

                          Comment


                          • Originally posted by SBQ View Post

                            My problem is i'm not sure how long wifey can hold out to before her insanity gets her, as she really wants her parents out in their own place.
                            Sorry - haven't followed teh thread on why you have in laws living with you. Maybe its a cultural thing. ( I cant fathom it as couldnt have my parents with me for more than a week - families eh!)

                            But what makes me wonder is why they cant make their own decision. If they cant find something to buy (put price aside) then they have a problem in this market which seems to have no shortage of opportunities. Are they of an age to look at a retirement village.

                            Comment


                            • Originally posted by SBQ View Post

                              Yes and new subdivisions propping up in Lincoln. Chch is nothing like Wellington or Auckland where they simply just can't build out. I've always been weary buy way out because of the risk when the whole economy takes a tank and say NZ gets an exodus of migrants to Australia (my elders have told me it's happened in the past). The $1600 price tag is too cheap (that's pre 2010 pricing). .
                              At some point you need to make a decision. Take the elder advice on board but dont rely on it solely. You have to look forwards not backwards.

                              I am probably one of these "elders". All I can tell you is the property market goes up and down. You can look at it as either an investment, (so money in / money out is important), An asset/Home (so money in/money out is kinda balanced) or a home (money in / money out isn't important). I've always had the second option as my view.

                              Just as a bit of "elder" back ground, I bought my very fist place just over 30 years ago. I put $17,000 down and took a $35,000 mortgage. I've kept a spreadsheet of my investments on pretty much a monthly basis ever since. If you note the date I've been through periods of ghastly interest rates (27%), GFC's and earthquakes (which wrote off my rentals). Today I'm mortgage free and my property is worth many, many many times that initial deposit. So I guess what Im saying is - its a long game you are playing. Sometimes you just have to make the move. You will never get 100% of your property wish list.

                              Comment


                              • Originally posted by MajorMoke View Post
                                Sorry - haven't followed teh thread on why you have in laws living with you. Maybe its a cultural thing. ( I cant fathom it as couldnt have my parents with me for more than a week - families eh!)

                                But what makes me wonder is why they cant make their own decision. If they cant find something to buy (put price aside) then they have a problem in this market which seems to have no shortage of opportunities. Are they of an age to look at a retirement village.
                                I would put it down to cultural issues and it's widely apparent worldwide with new migrants from China where the parents want to be 'closer' to their only child. I understand it and respect it but in no position to dispute it. It's called being married and the saying goes 'happy wife = happy life'. In the early years wifey wanted a large house so her parents could stay at extended times when i'm away on business travels. Now that we've been settled, they're coming to an age where travel is more risky and while per parents have PR, they will have to stay put in NZ. You could say, these are matters beyond my control. As for retirement homes, i've seen none in Chch that cater towards asian style such as the food and social network. There's a language barrier and different customs and needs.

                                As for myself, i'm far from being an elder. Mortgage free and owning land with no urgency to sell. Our 1st home we built about 10 years ago and done so with cash. I know with others were able to leverage into real estate and gain wealth through that path but my share investments have done far better so I would say i've been lucky.

                                My neighbour's daughter paid over $850K on a newly built house about 2 years ago near Aidanfield. Some 250m2 house. They liked it but something tells me if they were to try sell now, they would be lucky to get $750K. This tells me I shouldn't be rushed to buy anything.

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