Originally Posted by
Beagle
You beat me to it mate and not a surprise to me at all. I was involved as a trustee in a major farm sale close to Auckland for development in the last quarter of last year...extended contract that contained many complex commercial clauses (running to over 20 pages) including the usual due diligence. Can't name the parties for obvious reasons but the buyer pulled the pin in late December and I believe this is because many of their other developments are experiencing very, very slow sales. I heard from another client late last year, (the general manager of one of the major Australian owned franchises) that many developers in Auckland are really struggling to sell down their properties and some banks are getting titchy and requiring them to rent out houses to get some cash flow to service their debt !
No surprise to me that SUM are struggling to sell down their Auckland units and this problem won't go away any time soon in my opinion. They will also be struggling to contain rampant development cost inflation in the Auckland area as well, along with the struggle every other Auckland developer has to try and find subby's who have some clue of what they're doing at anything other than a usurious price. Its not a good game to be in at the moment and more developers will go to the wall in 2019, you mark my words.