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Thread: Section Prices

  1. #1
    Legend minimoke's Avatar
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    Default Section Prices

    Anyone notice how silent the doom and gloom merchants are on Section Prices.
    Buyers have experienced month on month growth in value after they hit their lows in June 2008. So from a low of $165,000 we have now seen over 9% growth to $180,000 with more sales done than for a while.

    And that’s one more reason why property prices won’t fall back 30%!

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    They ain't making any more planet. But they are still making more people to fill it.

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    Quote Originally Posted by minimoke View Post
    Anyone notice how silent the doom and gloom merchants are on Section Prices.
    Buyers have experienced month on month growth in value after they hit their lows in June 2008. So from a low of $165,000 we have now seen over 9% growth to $180,000 with more sales done than for a while.

    And that’s one more reason why property prices won’t fall back 30%!

    No it's not. Land prices will fall a long way. There are hundreds of unsold sites around the country. Holiday towns ans coastal properties have dropped a huge amount in some regions. More to go. I have no idea which area you are talking about - but it's an exception.

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    As I said it before, the so called "experts" got it wrong during the boom and they will get it wrong this time round. I personally know a number of so called "experts" completely missed out on the property boom and now too scared to invest when the bubble have burst. Net, net these experts will never make any money.
    Having got ourselves into a debt-induced economic crisis, the only permanent way out is to reduce the debt – either directly by abolishing large slabs of it, or indirectly by inflating it away.

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    Legend minimoke's Avatar
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    Quote Originally Posted by funguspudding View Post
    I have no idea which area you are talking about - but it's an exception.
    Actually it is all of New Zealand – so perhaps your examples are the isolated ones?
    Last edited by minimoke; 26-03-2009 at 07:12 AM.

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    NZ has tons of land relative to population density.
    \"death&taxes t.o.s.b\"

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    Quote Originally Posted by The Doctor View Post
    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.

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    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".

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    Quote Originally Posted by minimoke View Post
    Actually it is all of New Zealand – so perhaps your examples are the isolated ones?

    It's hard to measure section prices. The test is will the same section sell now for the price it would have fetched a year ago. In all areas I am aware of the answer is 'nowhere near it'.

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    Quote Originally Posted by funguspudding View Post
    No it's not. Land prices will fall a long way. There are hundreds of unsold sites around the country. Holiday towns ans coastal properties have dropped a huge amount in some regions. More to go. I have no idea which area you are talking about - but it's an exception.
    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

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