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  1. #1
    Join Date
    Sep 2012
    Posts
    227

    Default How much does brand new houses usually sell for compared to similar homes?

    I'm trying to find out how much more brand new houses sell for compared to similar homes in the same area.

    Is there a set percentage increase?
    For example 20% higher?

    Or let me put it this way.
    Two similar homes in the same area.

    Established home built 15 years ago asks for $500k.

    Second house is brand new.
    How much would you expect that house to ask for?

    Thanks

  2. #2
    Join Date
    Jul 2011
    Location
    Tauranga
    Posts
    2,769

    Default

    Way too many variables to answer. You can build and buy in my area for similar prices - maybe bit less spec on new in the current market - however brick and tile do not come up often in the sub $400k zone and are snapped up quickly - there are a few subdivisions where you can build for sub $400k.
    Last edited by Perry; 13-09-2014 at 02:51 PM. Reason: fixed typo

  3. #3
    Join Date
    Sep 2011
    Location
    Dunedin
    Posts
    1,675

    Default

    Quote Originally Posted by Maccachic View Post
    there are a few subdivisions where you can build for sub $400k.
    how about the "affordable homes" we keep hearing about, you know the ones for shitkickers

  4. #4

    Default

    New or not - why would you buy it?

    Investment – yield and potential would dictate the price!
    Owner-occupied home – what value or quality do you get for money?

    Resolving problems with newer homes are more severe and costly – why would you pay 20% more for it?

  5. #5
    Join Date
    Sep 2004
    Location
    Hastings
    Posts
    14,833

    Default

    Then there's the matter of established
    "grounds," being trees, shrubs, etc.
    Want a great looking concrete swimming pool in Hawke's Bay? Designer Pools will do the job for you!

  6. #6
    Join Date
    Aug 2009
    Location
    Auckland
    Posts
    1,080

    Default

    Such a hard question to answer without knowing the area or the condition the houses you are talking about. When you say two similar houses I assume the 'older' house shows little to no wear & tear compared to the new house? or similar in terms of floor area & # of bedrooms & # of bathrooms etc?

  7. #7

    Default

    The market sets the price and is what someone is prepared to pay.

    Start with land value which is similar unless factors such as size development/services costs, amenity, outlooks etc come into play.

    if you look at value of improvements an older house is hard to beat as the building is depreciating over time or the affect of inflation means that replacement costs are increasing. We tend not to see this as the land value in some areas increases and disguises the true depreciating value the improvements should reflect if the land value stays the same or reduces.

    older homes have higher maintenance costs and cladding ,roofs etc come up for replacement at times. New homes have minimal maintenance for some years (unless leakys)

    investors look at rental value which I assume could be higher for a new house. But rental income is generally tied to bedrooms and amenity and appeal to a lesser extent especially when reduced to a room rate.

    In some areas where land/sections is still available such as Orewa Hibiscus coast The new price for a new house provides a ceiling for cost people will pay as attraction for new sets the limit, in established areas it is more supply and demand and what people will pay closer to city and established areas for character etc.


 

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