• Login:
Welcome, Register Here
follow PropertyTalk on facebook follow PropertyTalk on twitter Newsletter follow PropertyTalk on LinkedIn follow PropertyTalk on facebook
Page 1 of 2 1 2 LastLast
Results 1 to 10 of 15
  1. #1
    Join Date
    Oct 2005
    Location
    Auckland, NZ.
    Posts
    617

    Default Thoughts on an 'Auckland Property Shortage'

    All,

    Simple Question:


    'If there is a shortage of property in Auckland - right now,
    Why is this not triggering a positive price response - right now?'

  2. #2
    Join Date
    Jun 2007
    Location
    Wellington
    Posts
    1,237

    Default

    Because the people who want to buy right now can't get finance right now.

    Once the banks loosen up on the credit criteria.... watch this space.


  3. #3
    Join Date
    Dec 2004
    Posts
    250

    Default

    Spot on Robin.
    was out on the hunt today in Auckland. more properties about (in all categories and areas) then you can poke a tick at.

  4. #4
    Join Date
    Oct 2005
    Location
    Auckland, NZ.
    Posts
    617

    Default

    Right, so we are saying that the missing ingredient is credit, once the credit tap

    starts flowing more freely - the party begins once more?

  5. #5
    Join Date
    Jun 2007
    Location
    Wellington
    Posts
    1,237

    Default

    Exactly


  6. #6

    Default

    2700 new homes going up in Red Beach north of Auckland, that should make some difference.
    Steven Goodey - CEO PropertyTutors Wellington

    www.propertytutors.com

  7. #7
    Join Date
    Oct 2008
    Location
    Auckland/Melbourne/ whereever the money is
    Posts
    1,380

    Default

    Have you priced them Steve?
    would be surprised if there was much below 500k
    not exactly first home territory & unlikely to be any cash +v amongst them.

    So that puts them into second home owner occupier territory.

    Will the flowdown to first home buyers really happen, since the seller is going to want top dollar on their 300k place, in order to upgrade to brand new 500k place, & in this market the buyers dont want to pay top dollar & the banks wont fund 300k
    I think the stalemate will continue for a while.

  8. #8
    Join Date
    May 2007
    Location
    Hamilton
    Posts
    3,560

    Default

    there was a NZ Herald article a while back that Auckland was growing by 50 people per day, and needed 21 new houses per day.

    If this is correct, then 2700 new houses will only take care of 129 days of growth.

    It will obviously have an impact, but if this is the only major new housing project, then Auckland should still have a shortage.

    Plus obviously the properties will take some time to sell, so in the short time will make little difference.

    Ross
    More Profit from Property? TEACH ME MORE
    Ross Barnett - Coombe Smith Property Accountants
    Proud to give the best property advice for over 13 years.

  9. #9
    Join Date
    Jun 2006
    Location
    Hutt City
    Posts
    1,305

    Default

    Quote Originally Posted by Robin McCandless View Post
    Because the people who want to buy right now can't get finance right now.

    Once the banks loosen up on the credit criteria.... watch this space.

    So in other words: There isn't a property shortage in Auckland right now.

    And what's more, the banks won't be loosening their credit criteria anytime soon.

  10. #10
    Join Date
    Jun 2007
    Location
    Wellington
    Posts
    1,237

    Default

    Quote Originally Posted by Jumpin View Post
    So in other words: There isn't a property shortage in Auckland right now.
    There is a shortage right now, but it's in the form of "pent up demand"... lot of frustrated wannabe buyers living in places they don't like, wondering just how many pieces of paper the next bank will want to see before saying no.

    And what's more, the banks won't be loosening their credit criteria anytime soon.
    Correct. What we're talking about here is a medium term driver for the beginning of the next boom.... but don't hold your breath



 

Thread Information

Users Browsing this Thread

There are currently 1 users browsing this thread. (0 members and 1 guests)

Similar Threads

  1. Your thoughts on residential property converted to IP
    By ak22 in forum Finance, legal and tax (NZ)
    Replies: 6
    Last Post: 20-10-2017, 10:15 PM
  2. Thoughts about buying property in australia
    By genius in forum Property Investment (NZ)
    Replies: 11
    Last Post: 10-04-2015, 05:50 PM
  3. Advice and thoughts please - Bought first property, what next?
    By Envesty in forum Property Investment (NZ)
    Replies: 16
    Last Post: 09-03-2015, 02:48 PM
  4. Mangere East - South Auckland thoughts?
    By Envesty in forum Property Investment (NZ)
    Replies: 14
    Last Post: 13-12-2014, 06:57 AM
  5. Your thoughts on this type of property/deal?
    By Glen in forum Property Investment (NZ)
    Replies: 3
    Last Post: 22-11-2007, 11:49 AM
  6. Replies: 0
    Last Post: 09-07-2007, 08:37 AM
  7. Myth or Magic: Thoughts on New Zealand Property
    By muppet in forum Property Library links
    Replies: 0
    Last Post: 01-07-2004, 09:56 PM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •