Avondale's Flo Apartment project cancelled, buyer 'devastated'

[FatPanda]

Source: http://www.nzherald.co.nz/business/n...ectid=11726025

oh dear, this is not great news!

[Bobsyouruncle]

Hardly a story. They are getting deposit and interest back. It's just media with no real news. This happens to developments quite regularly. Often they go under and the buyer has to fight to get their money out. At least that is not the case here.

[PTILoveYou]

It's actually a blessing in disguise.

Why would anyone buy an overpriced apartment in Avondale???

[Bobsyouruncle]

It's also not news as I said.

http://m.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11726327

Just one of 35.

[PTILoveYou]

"Problem with getting funding."

Haha! (Simpsons)

[ammar]

Typical expensive Auckland.

[sidinz]

"Problem with getting funding."

Haha! (Simpsons)

What a sterling example you are.

[Bobsyouruncle]

Nothing to do with Auckland, they just didn't allow for inflation in building costs, kinda dumb but understandable.

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11726793

[Bobsyouruncle]

This is also very true from related article:
""The non-bank funders are running out of money because the property finance units have effectively pulled out of the market and now the developers are rushing to the non-bank funders for money, but they have limited supply. This is going to see more developments canned in my view," he said."

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11726531

All augers well for unrelenting price rises in Auckland.

[eri]

council + gov

let's just whack on some more regulations

what could possibly go wrong?

"Since the genesis of this project, construction costs have sky-rocketed in Auckland.

Obviously you leave a contingency in forecasts for some cost increases but we're talking up to a 20 per cent increase in costs here.

That's simply not viable on a project of this size," Sandler said.

"Plumbers are now charging up to $120/hour.

It's also the price increases of gib board and concrete and we've got a duopoly in the building sector in New Zealand," he said.

Those rises, combined with more restrictive bank lending, killed the project in which many first-home buyers planned to purchase.

[elguapo]

It's actually a blessing in disguise.

Why would anyone buy an overpriced apartment in Avondale???

Perhaps so they don't need to rent an overpriced unit in Mt Wellington from you?

[Tomo]

It's actually a blessing in disguise.

Why would anyone buy an overpriced apartment in Avondale???

were they really overpriced? thought they sounded very reasonably priced

[Tomo]

"Plumbers are now charging up to $120/hour.

why are we not seeing more inflation across the broader economy? most trades people i know have 2 years booked out and have recently bought new utes and boats

[RHarris]

were they really overpriced? thought they sounded very reasonably priced

Agree they were well priced that was probably the problem. It looked like a great development.

As someone said this stuff happens all the time.

[PTILoveYou]

Perhaps so they don't need to rent an overpriced unit in Mt Wellington from you?

Last time I checked shoebox apartments rent for more than suburban units.