Fletcher new homes + surplus of new builds coming up in Christchurch

[rooney111]

There are about 250 new homes being built by Fletcher residential, and a lot more in Halswell, Redwood areas. These suburbs subdivisions are reasonably close to the CBD and priced from $350k to $450k for 3 bedroom houses. What does it mean for real estate market and specifically for older houses in or near CBD (assuming on good land)? Why would anyone buy an older house when you can get a brand new one for similar price or a little more?

[Damap]

They are having to sell them cheap because there is little demand I guess. Not good for the city short term.

[Nick G]

Probably fine long term however.

Call a property manager and find out what they'll rent for, it might be worth putting your hand up for one of them. Or do some research and find out if any are or may be sold for even cheaper.

[Wayne]

There will be some short to medium term price drop (or flattening) due to oversupply.
Live with it.

The fundamentals in Chch have changed back to be closer to what they were before the earthquakes.
Prices since then have been an aberration but many think it became the new normal - it isn't.

[Nick G]

As far as I can see a ruling from council outlawing living or renting uninsured dwellings (as-is-where-is, ones post EQC claim to prevent lawsuits from people stuck waiting) to make sure the rebuild is done completely would solve this for the builders. Fletchers must be throwing serious money around trying to make that happen.

Someone tell Gary there's money to be made if he can get a transfer down south.

[MikeO]

Two main reasons people in Christchurch would buy an existing home rather than a similarly priced new build:
1. School zones
2. To avoid traffic

give it 15 years and these new builds won't be so new, but they will still be miles away from the city (by quaketown standards). New motorways etc might help though...