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  1. #51
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    Quote Originally Posted by Vagabond47 View Post
    Not surprised, Kiwis generally aren't a big fan of apartments. The amount of apartment blocks needing remediation hasn't done their image any good, and when you are shopping for property and look at apartments, and discover $5k pa Body corp levies you lose interest real fast.
    Friend of mine lives in a 90 apartment complex, very nice, well maintained, not cheap to rent or to buy. 88 are rentals. This is Wellington central - big rental shortage here.

    If not bought off the plan as rentals or for owner occupiers, nobody should be surprised if the development falls over. Big question - in a shortage why are investors not buying (existing or new)? Government policies have plenty to do with it.

  2. #52
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    Dec 2017
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    Quote Originally Posted by artemis View Post
    Friend of mine lives in a 90 apartment complex, very nice, well maintained, not cheap to rent or to buy. 88 are rentals. This is Wellington central - big rental shortage here.

    If not bought off the plan as rentals or for owner occupiers, nobody should be surprised if the development falls over. Big question - in a shortage why are investors not buying (existing or new)? Government policies have plenty to do with it.
    A lot of the apartments that were planned were luxury apartments catering to the overseas buyer market, when that got knocked on the head they discovered no local was going to pay $800k+ for a city apartment (eg. https://www.trademe.co.nz/browse/lis...?id=1423232571 ) , but thats what they needed to make the project work.

  3. #53
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    Nov 2018
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    Christchurch
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    Quote Originally Posted by artemis View Post
    Friend of mine lives in a 90 apartment complex, very nice, well maintained, not cheap to rent or to buy. 88 are rentals. This is Wellington central - big rental shortage here.

    If not bought off the plan as rentals or for owner occupiers, nobody should be surprised if the development falls over. Big question - in a shortage why are investors not buying (existing or new)? Government policies have plenty to do with it.
    Fully agree. Need to question why most of these high rise apartments or condos are going bust well before they start or finish? Quite often i'm told there are great similarities to the housing problem between Auckland and Vancouver but they're so far apart. Vancouver constantly is building high rise after another and each time I visit every year, I see 1 petro station knocked down and replaced with a condo (with business premise at ground level). The surprising thing is these building projects are mostly SOLD OUT well before they start digging.

    NZ is far too expensive to build - only fools would pay over $800K for 66m2. Last year visiting Auckland my uncle (who works at Alk city council) told me that there are countless of projects going under... meaning "they're not financially viable". It seems that they whole NZ real estate market depends on higher and higher prices to fuel any building. But what we have is a shortage of buildings with investors running away from building projects.

    As I said before, NZ's remoteness makes construction ultra expensive. In Canada, economies of scale is achieved being next door to the USA. I'm thinking the world realises the cost of living is just too high in NZ that when they look at the salary pay.. the #s don't stack up.

  4. #54
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    Quote Originally Posted by Vagabond47 View Post
    A lot of the apartments that were planned were luxury apartments catering to the overseas buyer market, when that got knocked on the head they discovered no local was going to pay $800k+ for a city apartment (eg. https://www.trademe.co.nz/browse/lis...?id=1423232571 ) , but thats what they needed to make the project work.
    No idea if they were high end or shoe boxes. But one thing we do know is that LVR changes for investors coincided with a major drop off in them buying. Bank lending to the sector started dropping sharply from mid 2016 and remains well less than half that level. (Reserve Bank c31 report.)

  5. #55
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    Dec 2017
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    Quote Originally Posted by artemis View Post
    No idea if they were high end or shoe boxes. But one thing we do know is that LVR changes for investors coincided with a major drop off in them buying. Bank lending to the sector started dropping sharply from mid 2016 and remains well less than half that level. (Reserve Bank c31 report.)
    Minor problem with that theory, LVR restrictions don't apply to new builds, for Owner-occupiers or investors.

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