Section Prices

[outspoken]

Funguspudding there are thousands of sections either on market or not that are an overhang from the recent boom

Where sections are located in core areas (by core i mean not locations where a high proportion of houses are holiday homes) the prices should be relatively steady - movement may have gone up as people consolidate there interests.

Where most profit (and risk) is to be made are in the non core areas. Recently some mortgagee sales in secondary areas went for about half GV and not all sold. Although i wasn't there for this auction i was suprised at not only the value but lack of demand. Unfortunately GVs were undertaken near the peak in these locations and true value has retraced conservatively about 25%. So still a bargin but more for the longer term unless your buying to build your house.

Also don't forget that Development Contributions may be payable depending on how the Council's policies apply - some don't charge til sites are developed.

Bear

I'm with funguspudding on this one,

Should? - have they or not, my anecdotal evidence says that prices are flat at best, falling more likely.
Your very first comment and then the comment about development contributions only reinforces the view that section prices will fall even more.

[The Doctor]

NZ has tons of land relative to population density.

[Jessie]

NZ has tons of land relative to population density.

Sections certainly seem to have fallen in value in Rotorua, after rising rapidly in recent years. Eg, the a section in the EastLake subdivision sold initially a year or so ago for about $145,000 but now is advertised on TradeMe for $114,000.

[lakedaemonian]

How much income can you earn from a typical empty "quarter acre dream" section?

How liquid is a typical empty "quarter acre dream" dream?

Even at the flashest of locations I wouldn't touch an empty section for anything less than a 50% discount to current "market value".