Palmerston North

[marklowes]

Surely it must cost more to buy new in Palmy than to buy existing....

Existing stand alone houses on a full section can still be had for 300k. If you wanted to build on a full section its 550k plus. No infill I've seen has been on a full section.

100 odd high density social/affordable houses ("terraced housing") will never appeal to people and will just be used to house the 500 odd and increasing homeless. Positive move but labour seem to writing a lot of cheques without any idea of how they'll be cashed. Already over 1 year wait to build new in Palmy, who will build these extra ones and why would builders be bothered when they can get far greater margins sticking with the mcmasions. Get ready for corners to be cut and another leaky home type crisis if labour actually try building 100k houses in NZ with new apprentices. Would be fun to watch but can't see it having much of an impact.

[marklowes]

Palmy update 15 March 2018:


"Palmerston North has a critical shortage of houses for sale, and a strong demand for sections that cannot be satisfied.

The Real Estate Institute figures for February show 137 homes changed hands in the month, with the median price rising to $380,500 under the pressure, up from $340,000 a year ago.

Only empty two sections were sold in the city for the month, and one in Manawatū.

Manawatū institute spokesman Andy Stewart said with just over 250 houses for sale in Palmerston North, listings were down to a critical level"

https://i.stuff.co.nz/manawatu-standard/news/102248803/section-shortage-becoming-critical-in-palmerston-north

[Alanz]

I have bought 2 in Palmy. The second one was settled in January. I don't know much of stats. Here are some info I can share:

I easily rented my ones within a week on the market, and positively geared with 100% finance.
Since I bought, quite a few of my colleagues in my work place are inspired and looking to buy in Palmy from Auckland.
One of my colleagues bought one recently and easily rented out.
Others told me that each time when they submit an offer, it was always multi-offer situation.

It looks like the market is still hot. The price may keep going up steadily if the supply cannot keep up with demand.

[marklowes]

$2.3 billion injection in nearby Ohakea 20 mins from Palmy - relocating families from Auckland likely to be based in PN for best schools/retail/amenities in the region.

https://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=12085784

Half, over 1 billion on infrastructure which will be a direct boost to PN businesses.

Shows the value of having defence as a core tenant in the region - puts Shane Jones 1 billion regional investment drip fed across the country into perspective.

House Sales in PN last month are up (very strong 160 sales) and annual price growth actually increased (QV index) from 8 odd % to over 9%. 2-3 years more of this growth likely based on last cycle.

If the Singapore F15 fighter plane deal goes through 500 more high earning families also on their way.

[Wayne]

$2.3 billion injection in nearby Ohakea 20 mins from Palmy - relocating families from Auckland likely to be based in PN for best schools/retail/amenities in the region.

https://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=12085784

Half, over 1 billion on infrastructure which will be a direct boost to PN businesses.

Shows the value of having defence as a core tenant in the region - puts Shane Jones 1 billion regional investment drip fed across the country into perspective.

House Sales in PN last month are up (very strong 160 sales) and annual price growth actually increased (QV index) from 8 odd % to over 9%. 2-3 years more of this growth likely based on last cycle.

If the Singapore F15 fighter plane deal goes through 500 more high earning families also on their way.

That $1Bill isn't all spend locally you know.
It's training, parts for the new planes, simulators etc.
Several hundred people (including family) will move with the move of No5 squadron so a few more houses needed around the base.

[marklowes]

Sorry for the lack of updates recently (still busy buying while still undervalued).

Find the latest on the booming Palmy market below with expert commentary from those on the ground:

https://www.stuff.co.nz/manawatu-standard/news/116626118/manawatuwhanganui-house-prices-rocket-through-another-record-high

https://www.landlords.co.nz/article/976515759/surge-in-rental-demand-in-palmerston-north

[marklowes]

and off the press today, along the same lines as the above articles

https://i.stuff.co.nz/manawatu-standard/news/116774295/palmerston-north-tenants-and-flathunters-under-pressure-as-rents-skyrocket#comments

[marklowes]

Demand in Palmerston North jumps 50 per cent

“Tenants in Palmerston North are under pressure and rentals are hot property after the number of enquiries jumped 50 per cent on last year.
Mr Clancy said the number of rentals in the area fell 4 per cent on September last year.
“With rising demand and falling supply, it’s not surprising that the median rent in Palmerston North hit a new record in September up 18.6 per cent on last year to $415 per week.”


Mr Clancy said all sizes and types of rental properties in Palmerston North saw an increase in median weekly rents. “Medium properties (3-4 bedrooms) had a strong year-on-year rent increase with the median weekly rent jumping 13 per cent or $50 on last year to $440 per week. Rent for small properties (1-2 bedroom) rose 11 per cent on last year to $300 per week.”

[BlueSky]

Looks like its overcooked already

[Peter Griffin]

"Overcooked" not from what the article states. Maybe 'catching up', as the ripple may have reached Palmerston North?