Originally Posted by
Maverick
Resale margins will contract in Auckland and Tauranga but will always be in keeping with general building inflation. It's just that it was so unsustainably fast paced up to 2017 in these regions.There is still truck loads of embedded value to catch up on as the units resell from prices set 6 years ago.
the word they use is "contract" it is not "collapse" ,or "petter out".
SUM resales are in top condition and will be linked closer to a new build price rather than something second hand.
Also, most importantly, the resale margins are becoming far less of their profit proportion. In 2015 SUM started making more from its DMFs than resales . Now , it's 150% more and increasing annually at 28 %. ( if anyone doesn't know what a DMF is then you need to find out because IMO this is the cornerstone of the sector, property values just keep things inflation proof)So Im so with Beagle on this, Craig's have got it wrong. Doesn't matter to them though, they'll be able to charge their clients on the selling and later on the rebuying