Real estate, post COVID-19 level 4 (since 2020)

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#2555300 2-Sep-2020 00:31

Really! That's extremely suprising,
That's a regulated industry - they could get in serious trouble and be blacklisted or lose their licence if they are that far out.
Are you are sure there wasn't something wrong with the property, that they took into account & the people putting offers in, decided to ignore/overlook?

I would have to suggest there was probably more to the story, - as that would be incredibly rare/never in my experience.

BlinkyBill

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#2555302 2-Sep-2020 01:21

My brother was a Registered Valuer until around 10 years ago. He stopped valuing for two reasons 1) those commissioning valuations being (my words) too emotional around the valuation and trying to pressure valuations in one direction or another and b) too many lazy and incompetent (his words) values.

When there are low stock levels, buyers exhibit signs of desperation and that inflates the price paid also.

BlinkyBill

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#2555303 2-Sep-2020 01:23

Actually, the real reason he stopped is he started making much more money doing something else related to property. Which meant he had to stop valuing.

quickymart

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#2555318 2-Sep-2020 07:15

So, prices are going to be ridiculously high for the foreseeable future. Ah well.

quickymart

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#2556787 4-Sep-2020 09:49

https://www.rnz.co.nz/programmes/the-detail/story/2018762052/could-boxes-from-china-solve-our-housing-problems

Anyone think this might make a difference (to the slow construction rate)?

kingdragonfly

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#2556809 4-Sep-2020 10:37

It does sound reasonable.

The cost of construction materials is outrageous, even for local produced lumber.

We have geographic monopolies.

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BlinkyBill

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#2556884 4-Sep-2020 11:33

quickymart:

https://www.rnz.co.nz/programmes/the-detail/story/2018762052/could-boxes-from-china-solve-our-housing-problems

Anyone think this might make a difference (to the slow construction rate)?

No, the constraint is people to do the work; and the RMA process. Only when those issues are resolved will the pace of new builds increase.

quickymart

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#2556902 4-Sep-2020 11:56

Is it a land issue as well? ie, there's not enough land (in Auckland anyway) to put new houses? Sorry if that's a dumb question.

concordnz

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#2556909 4-Sep-2020 12:10

quickymart:
Is it a land issue as well? ie, there's not enough land (in Auckland anyway) to put new houses? Sorry if that's a dumb question.

Land 'per see' is not an issue.
Land with utilities capabilities yes,
(10-15years ago watercare/councils - changed from a strategy of 'forward planning' to 'constraint resolution')

E.g. Instead of installing infrastructure ahead of time - they only start planning to upgrade after currently capacity has hit or exceeded it's limits & is causing problems.

[Meaning they could delay/cancel a lot of 'forward projects' - and spend the money on non-essential but vote winning projects]

There is large chunks of Papatoetoe & surrounding areas which cannot be 'developed' because the infrastructure capacity can't handle it & resources concents means it is years before the the council will fix it.

So this short sighted strategy by its nature - causes an 'artificial' shortage of developmental land.

tdgeek

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#2556930 4-Sep-2020 12:34

concordnz:
quickymart:

Is it a land issue as well? ie, there's not enough land (in Auckland anyway) to put new houses? Sorry if that's a dumb question.

Land 'per see' is not an issue.
Land with utilities capabilities yes,
(10-15years ago watercare/councils - changed from a strategy of 'forward planning' to 'constraint resolution')

E.g. Instead of installing infrastructure ahead of time - they only start planning to upgrade after currently capacity has hit or exceeded it's limits & is causing problems.

[Meaning they could delay/cancel a lot of 'forward projects' - and spend the money on non-essential but vote winning projects]

There is large chunks of Papatoetoe & surrounding areas which cannot be 'developed' because the infrastructure capacity can't handle it & resources concents means it is years before the the council will fix it.

So this short sighted strategy by its nature - causes an 'artificial' shortage of developmental land.

I doubt many local councils can afford to build infrastructure for a development, then hey while we are here lets triple the infrastructure build and cost for the distant future. Its not really short sighted, its just short of a cheque book or two

kingdragonfly

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#2556931 4-Sep-2020 12:36

BlinkyBill: No, the constraint is people to do the work; and the RMA process. Only when those issues are resolved will the pace of new builds increase.

From Is it really more expensive to build new in New Zealand?

...Roy Thompson, co-founder and managing director of New Ground Capital, recently visited a show home in Melbourne which he said cost about NZ$1000 a square metre, compared with the $2000 per sq m or more it would cost in New Zealand.

"This seems to totally rebut the view that in New Zealand it is land and council compliance costs that are the problem."

...The cost of construction in the main centres rose more than 30 per cent over the past 10 years, and fastest in Auckland.

Over the same decade, the price of land soared 50 per cent, labour costs rose 17 per cent, and plasterboard, cement, and concrete products kept pace with inflation at 13 per cent. House prices rose 57 per cent....

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Senecio

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#2556933 4-Sep-2020 12:38

Here's a standalone dwelling that was built in a modular factory in China.

http://www.prefabmarket.com/modular-home-construction-triumphs/

I think off-site factory builds will become more and more common. Its a way to standardise construction, which removed costs, and also removes the external weather factors that plague the construction market in NZ.

tdgeek

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#2556938 4-Sep-2020 12:48

Senecio:

Here's a standalone dwelling that was built in a modular factory in China.

http://www.prefabmarket.com/modular-home-construction-triumphs/

I think off-site factory builds will become more and more common. Its a way to standardise construction, which removed costs, and also removes the external weather factors that plague the construction market in NZ.

I think so. They can be customised, you won't see every 8th house is identical to yours, and they has to be a big market for frist home buyers. Retirees downsizing too

quickymart

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#2557154 4-Sep-2020 16:42

This is more like it, at least someone is trying to find a solution rather than sitting there endlessly saying "high house prices are great, let's keep them up for as long as possible", making it nigh on impossible for anyone to get onto the property ladder without an enormous (unrealistic for most) deposit, as well as being told to live with it, this is the way of the world now, etc etc etc

Handle9

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#2557157 4-Sep-2020 16:53

kingdragonfly:
BlinkyBill: No, the constraint is people to do the work; and the RMA process. Only when those issues are resolved will the pace of new builds increase.

From Is it really more expensive to build new in New Zealand?

...Roy Thompson, co-founder and managing director of New Ground Capital, recently visited a show home in Melbourne which he said cost about NZ$1000 a square metre, compared with the $2000 per sq m or more it would cost in New Zealand.

"This seems to totally rebut the view that in New Zealand it is land and council compliance costs that are the problem."

...The cost of construction in the main centres rose more than 30 per cent over the past 10 years, and fastest in Auckland.

Over the same decade, the price of land soared 50 per cent, labour costs rose 17 per cent, and plasterboard, cement, and concrete products kept pace with inflation at 13 per cent. House prices rose 57 per cent....

The quote you have posted doesn't reflect the overall article. I don't entirely agree with the articles conclusions but if you are going to post quotes at least make them reflective of the article.

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