House prices coming back

[Edinburgh]

I live in Tauranga where I am seeing increasing evidence of house prices stalling, particularly amongst higher value properties, anything above $600k (okay, I know for Aucklanders that is almost average, but for us it is cosidered high).

Most people in this forum appear to be low value property purchasers holding for the long term, but I would be interested to hear from anyone else who, like us, has invested in new builds to generate cash for property investments.

What is your experience where you are?

[drelly]

I am seeing some evidence of a slow down in sales in Whangarei. Inevitable really with the ludicrous prices that have been asked recently.

[Edinburgh]

Hi Drelly

Thanks for that. I have a specific question for you. We have 2 sections in Ruakaka and building will start in January. We will need to sell these solid and attractive, but not spectacular homes for $450k min to make money. As you know the area, what do you think of our chances?

[drelly]

Where exactly? Paradise shores?

[Edinburgh]

No, a new subdivision called Endeavour Court, done by Fulton Hogan. Work will have just started on a small number of houses there.

It is a triangular development between Pyle Rd West, One Tree Point Rd and Shearwater St. It is walking distance to the beach, but no sea views.

[drelly]

I haven't seen that one... will go out and have a peek! The Hopper development has really put the spotlight on the whole area and it's incredible what property has been selling for out there. Very small farms are going for many millions! I think that whole area has a lot more developing to go and it will end up as it's own version of Whangarei.