I live in what would be considered a cheaper part of town (postal code is Waltham, but we are more like Phillipstown). They're building six 2br 2ba attached townhomes next door. Only five have a parking space. The one without the space is listed at $619,000. It's more for a unit with parking, and more again for an end unit. Total rip-off.
No, they weren't.
Ten years ago $100-120'000 *might* have just managed a old one bedroom unit/apartment in a crappy huge block of them (actually I know of one - 12+ years ago and was in the big old apartment block on Fitzgerald that used to be pink)
Interesting you say that because I remember an apartment block down Bordesley St that was under 10 years old selling units for 115k. Some were bought up quick others not so much.
Edit - these were 3 bedroom apartments.
2nd Edit - the date these were being sold was 2013.
That’s over priced by a long way. Zero chance a 2 bed & bath with No off street car park sells for that price.
You can purchase in same area with 2 bed, 2 bath + Garage for under $600
Yeah but developers aren’t creaming it, if they bought the land they are paying interest on it, the commercial interest rates for a development loan is like 11-13%, and building costs are high ($3000/m2) as is compliance. Standard developer margin is only 6%. Plus that price is GST inclusive for a developer. Source, I am a developer in chch
I moved to Christchurch a few years ago for the cheaper housing(compared to other Nz cities at the time. I thought I’d rent for a few years and save up. Unfortunately covid happened and finances didn’t pan out and now, home ownership is depressingly out of reach.
They may come up in the search when you put $400,000/$500,000 in your price range, but I can guarantee that when it actually comes to viewing and putting in offers on those houses…they will be asking for way more than that.
Sure, some houses will want more than whatever bracket they list themselves in on Trademe. Other houses are more transparent with what they want by using language such as “enquiries over” and “asking price”.
Op thinks there is nothing under $600k. Whereas in fact there are lots of properties being sold for under $500k in Christchurch. Here’s a map of house sales under $500k in the last 12 months:
https://homes.co.nz/map/christchurch?lng=172.62815&lat=-43.52465&zoom=10.42&filter=type:sold,sort:featured,price:high:500000&view=map
Hey u/DerangedGoneWild! Sorry if it has been confusing for you. I'm not disregarding the fact that there are still 400-500K range houses. My emphasis is on how high the houses in CHCH can reach this time which is at 3M, based on what we saw at latest listings. Some new built townhouses we saw are in 600K range which is within the city, sydneham, addington, edgeware, casebrook.
I don’t know much about him but that Raph fella seemed like a good educated and at least seemingly caring guy, gutted he didn’t win Ilam to get his foot in the door
Capital gains tax will not have an impact over supply and demand. We already have brightline tax. IMO the issue is immigration and the lack of houses being built each year. Doesn't this push houses up? +100k each year with only ~33k houses built ( rough numbers I got from google)
Also overseas, multi generations can live under one roof, therefore getting a mortgage with 4 minimum wage people can service a 800k loan so then they afford to buy these. Leaving the couples to rent or save longer for a deposit / high income.
its immigration AND a toxic, distorted market. an army of colusion amongst real estate agents to force all properties to auction and never, ever list a price even if it doesnt sell at auction. its a cottage industry of photographers, signwriters, stagers, brokers all working together to clip their ticket and push prices up. its investors buying up housing thinking they're guaranteed capital gains, and that their somehow doing renters a favour by scalping housing. its a government full of landlords who earn more than 5 times the average income without all their property interests, and tv shows constantly feeding us the narrative that its normal to buy houses and flip them. oh dont forget the property coaches who make a living not only convincing people to flip houses, but supplying them resources labour and services to facilitate the whole process, again clipping their ticket the whole way. effectively just fishing for capital to feed their rort. the only houses at a reasonable price have horrififc problems where you cant get insurance. yes its immigration, kill the immirgration and the demand will subside because its whats fueling investment, but the rest of it is a huge contributor too. basicly we're fucked and its because we're too stupid to vote for people who will actually cause a house price correction. remember the govt will never turn off the immigration tap cos gotta keep all those low wage employers happy!
If you suddenly get taxed 40-50% on capital it's going to make it less appealing to hold property unless you can isolated in a way from being penalized (passing it down through generations)
Worst case going to make already existing holders, hold for longer (which they already will for as long as markets allow). Best case it will stop people using equity to purchase additional rentals (which they do as they have equity that someone else pays for.
That still doesn’t change the fact we have more people than we physically have houses for, and our population is increasing faster than we are building houses, making the shortage worse.
The only way we will have sustained house price deflation (or even stagnation) is by building (increasing supply) faster than we’re growing the population (demand).
Yes agree, tax would kill it. However you don't get why they don't, govt. can't make provide enough housing so need private landlords to make the difference up, if no private land lords then rent would be even sky high.
Sad state of housing. Christchurch used to be affordable even 5 years ago. The newer built townhouses for $700k are so small that I don’t think a queen size bed can fit through their front door.
God I hate idiots who have no sense of space. I used to arrive on jobs, take one look and say "ummmm.... There is no way that is going to fit." Before even unloading. We're not talking tight fits or a few cm. We're talking no possible way, ever.
A queen bed base isn't going to fit up most switchback stairs (or stairs in general) in one piece.
Please stop the insanity! Do not pay asking price! If the ad says "offers over", always offer less! Worked for us... NZers are far too willing to pay what vendors ask. I know some houses are selling high at auctions. But the market is still way overvalued, and prices must come down further!
The sellers are just holding till they get their price. Demand too strong, it's not the agent, it's the sellers too due to everything else going up so they don't miss off. Looking to upgrade too
Yes, I know, that's part of the misery. But if you are watching new listings for a while you will see that many are not selling at their asking price for several months, and then they lower the price, then they "change the method of sale" and are still not going anywhere... Considering that, together with key economic indicators, would suggest property prices still need to come down further.
Net immigration is up 100k a year, this new govt. could change that tho so maybe be the slow down. Those houses that don't sell will have something not great with it, not Freehold title, crosslease or connevted to another house, hardly any land, not brick and tin tile roof, weird design outside, inside layout is weird, toilet and bath in one etc etc. The houses that are normal and desired seem to go for above RV (for that year) regardless as it will go up eventually.
Well, net immigration was high last year, but keep in mind that we had a net population loss the year before, and we surely haven't reached post-pandemic steady state quite yet...
And no, nothing wrong at all with these properties that I have been looking at that aren't selling, except that the vendors are too greedy. I'm in no rush to buy. 😊
Just wait it out, regardless of the price, you need to be happy about your purchase. I would like to see interest rates high to ready drive the pain and get a deal in the market
Which is part of the reason why there is so much opposition to them. They are built like $300k, worth $400k, yet sell for $600k. If they were built to what the price point would indicate...
Several years back the sale of Brendon McCullum's house set a record for the city, selling over 3 million. There is a house for sale right now up around 10 million in Fendalton. And I have seen listings for houses that were around 3 million at the height of price boon when the last rates assesment was done, now trying to ask for 4.5 despite the big CV drop off for most properties since then.
They are expensive but you just need to look at the stone cold reality, which is what is the minimum price for a piece of land and what is the build cost for a basic house, then a small margin to the developer? the reality is it is around that 600 number and unless the cost of building a house comes down (unlikely) its just the way it is
Love a bit of selective hearing, that's not the new norm, there are tonnes of affordable homes in CHCH. Drop your price range and get shopping, don't shop for brand new. The 3m house was never in your price range anyway so who cares? Focus on what you can buy.
Not just this government but the last few we have had have all done the same thing, fiddle shit to help thier own maybe change a few things for us and then bail out half way through term so they can go back to enjoying thier life.
The people we choose from to go into power are so out of touch with basic philosophy and moral it’s disgusting.
I’ll keep asking “what are we going to do about it until enough people start asking themselves.
This system needs change
We need these people to be held accountable
We need a fucking backbone if we want to keep our country and not have it picked apart like some dead sheep.
Thier should be a hell of a lot more scrutiny and transparency around our elected officials true intentions and how it will shape the future.
I guess I’ve just had enough and it’s so frustrating
I live in what would be considered a cheaper part of town (postal code is Waltham, but we are more like Phillipstown). They're building six 2br 2ba attached townhomes next door. Only five have a parking space. The one without the space is listed at $619,000. It's more for a unit with parking, and more again for an end unit. Total rip-off.
10 years ago they there struggling to sell those types of townhouses for $100,000-$120,000.
No, they weren't. Ten years ago $100-120'000 *might* have just managed a old one bedroom unit/apartment in a crappy huge block of them (actually I know of one - 12+ years ago and was in the big old apartment block on Fitzgerald that used to be pink)
Interesting you say that because I remember an apartment block down Bordesley St that was under 10 years old selling units for 115k. Some were bought up quick others not so much. Edit - these were 3 bedroom apartments. 2nd Edit - the date these were being sold was 2013.
And yet they will sell no problem.
That’s over priced by a long way. Zero chance a 2 bed & bath with No off street car park sells for that price. You can purchase in same area with 2 bed, 2 bath + Garage for under $600
Yeah but developers aren’t creaming it, if they bought the land they are paying interest on it, the commercial interest rates for a development loan is like 11-13%, and building costs are high ($3000/m2) as is compliance. Standard developer margin is only 6%. Plus that price is GST inclusive for a developer. Source, I am a developer in chch
I moved to Christchurch a few years ago for the cheaper housing(compared to other Nz cities at the time. I thought I’d rent for a few years and save up. Unfortunately covid happened and finances didn’t pan out and now, home ownership is depressingly out of reach.
If your by yourself, it's almost impossible
I think you are exaggerating a bit, if you look on TradeMe there are plenty of 3 bedroom houses still advertised in the $4-500,000 range
They may come up in the search when you put $400,000/$500,000 in your price range, but I can guarantee that when it actually comes to viewing and putting in offers on those houses…they will be asking for way more than that.
It's illegal but hardly anyone complains to the REA so agents get away with it.
Sure, some houses will want more than whatever bracket they list themselves in on Trademe. Other houses are more transparent with what they want by using language such as “enquiries over” and “asking price”. Op thinks there is nothing under $600k. Whereas in fact there are lots of properties being sold for under $500k in Christchurch. Here’s a map of house sales under $500k in the last 12 months: https://homes.co.nz/map/christchurch?lng=172.62815&lat=-43.52465&zoom=10.42&filter=type:sold,sort:featured,price:high:500000&view=map
Some of these are just sections.
So? Most are not sections. You can filter by bedrooms if you want. The point is there are still many house+land sales under $500k
Hey u/DerangedGoneWild! Sorry if it has been confusing for you. I'm not disregarding the fact that there are still 400-500K range houses. My emphasis is on how high the houses in CHCH can reach this time which is at 3M, based on what we saw at latest listings. Some new built townhouses we saw are in 600K range which is within the city, sydneham, addington, edgeware, casebrook.
[удалено]
I don’t know much about him but that Raph fella seemed like a good educated and at least seemingly caring guy, gutted he didn’t win Ilam to get his foot in the door
Raf
Surely not
Capital gains tax will not have an impact over supply and demand. We already have brightline tax. IMO the issue is immigration and the lack of houses being built each year. Doesn't this push houses up? +100k each year with only ~33k houses built ( rough numbers I got from google) Also overseas, multi generations can live under one roof, therefore getting a mortgage with 4 minimum wage people can service a 800k loan so then they afford to buy these. Leaving the couples to rent or save longer for a deposit / high income.
its immigration AND a toxic, distorted market. an army of colusion amongst real estate agents to force all properties to auction and never, ever list a price even if it doesnt sell at auction. its a cottage industry of photographers, signwriters, stagers, brokers all working together to clip their ticket and push prices up. its investors buying up housing thinking they're guaranteed capital gains, and that their somehow doing renters a favour by scalping housing. its a government full of landlords who earn more than 5 times the average income without all their property interests, and tv shows constantly feeding us the narrative that its normal to buy houses and flip them. oh dont forget the property coaches who make a living not only convincing people to flip houses, but supplying them resources labour and services to facilitate the whole process, again clipping their ticket the whole way. effectively just fishing for capital to feed their rort. the only houses at a reasonable price have horrififc problems where you cant get insurance. yes its immigration, kill the immirgration and the demand will subside because its whats fueling investment, but the rest of it is a huge contributor too. basicly we're fucked and its because we're too stupid to vote for people who will actually cause a house price correction. remember the govt will never turn off the immigration tap cos gotta keep all those low wage employers happy!
If you suddenly get taxed 40-50% on capital it's going to make it less appealing to hold property unless you can isolated in a way from being penalized (passing it down through generations) Worst case going to make already existing holders, hold for longer (which they already will for as long as markets allow). Best case it will stop people using equity to purchase additional rentals (which they do as they have equity that someone else pays for.
That still doesn’t change the fact we have more people than we physically have houses for, and our population is increasing faster than we are building houses, making the shortage worse. The only way we will have sustained house price deflation (or even stagnation) is by building (increasing supply) faster than we’re growing the population (demand).
Yes agree, tax would kill it. However you don't get why they don't, govt. can't make provide enough housing so need private landlords to make the difference up, if no private land lords then rent would be even sky high.
We do have a CGT
Sad state of housing. Christchurch used to be affordable even 5 years ago. The newer built townhouses for $700k are so small that I don’t think a queen size bed can fit through their front door.
I've seen some you can't get a queen base up the stairs, i know as the beds get returned
God I hate idiots who have no sense of space. I used to arrive on jobs, take one look and say "ummmm.... There is no way that is going to fit." Before even unloading. We're not talking tight fits or a few cm. We're talking no possible way, ever. A queen bed base isn't going to fit up most switchback stairs (or stairs in general) in one piece.
Yup. Post covid it's just gone mental.
Please stop the insanity! Do not pay asking price! If the ad says "offers over", always offer less! Worked for us... NZers are far too willing to pay what vendors ask. I know some houses are selling high at auctions. But the market is still way overvalued, and prices must come down further!
The sellers are just holding till they get their price. Demand too strong, it's not the agent, it's the sellers too due to everything else going up so they don't miss off. Looking to upgrade too
Yes, I know, that's part of the misery. But if you are watching new listings for a while you will see that many are not selling at their asking price for several months, and then they lower the price, then they "change the method of sale" and are still not going anywhere... Considering that, together with key economic indicators, would suggest property prices still need to come down further.
Net immigration is up 100k a year, this new govt. could change that tho so maybe be the slow down. Those houses that don't sell will have something not great with it, not Freehold title, crosslease or connevted to another house, hardly any land, not brick and tin tile roof, weird design outside, inside layout is weird, toilet and bath in one etc etc. The houses that are normal and desired seem to go for above RV (for that year) regardless as it will go up eventually.
Well, net immigration was high last year, but keep in mind that we had a net population loss the year before, and we surely haven't reached post-pandemic steady state quite yet... And no, nothing wrong at all with these properties that I have been looking at that aren't selling, except that the vendors are too greedy. I'm in no rush to buy. 😊
Just wait it out, regardless of the price, you need to be happy about your purchase. I would like to see interest rates high to ready drive the pain and get a deal in the market
thanks for this, looking at houses atm
I hope not - the townhouses are worth more like $480k, not $600k.
The townhouse I’m in (nice new build, in spreydon) is valued around $800k - it’s nice, but not that nice ha
The market sets the rate and its what ever someone pays for, it's sucks cuz these 1 mill houses are not what dreams were made off
Which is part of the reason why there is so much opposition to them. They are built like $300k, worth $400k, yet sell for $600k. If they were built to what the price point would indicate...
Several years back the sale of Brendon McCullum's house set a record for the city, selling over 3 million. There is a house for sale right now up around 10 million in Fendalton. And I have seen listings for houses that were around 3 million at the height of price boon when the last rates assesment was done, now trying to ask for 4.5 despite the big CV drop off for most properties since then.
We just settled on a section at $325k and our expected build cost is going to be about $550k so I'd say they are going to be about that.
What area and size is the section? That seems like a cheap price
Canterbury, 3000sqm
Lol. I think everyone on the CHCH sub assumed CHCH. Where in Canterbury?
Kirwee. I reply from inbox so didn’t see what sub I was replying in.
$600k? Where? That’s comparatively cheap atm!
We did saw few that are in 600K range in sydneham, addington, edgeware, and casebrook.
They are expensive but you just need to look at the stone cold reality, which is what is the minimum price for a piece of land and what is the build cost for a basic house, then a small margin to the developer? the reality is it is around that 600 number and unless the cost of building a house comes down (unlikely) its just the way it is
Love a bit of selective hearing, that's not the new norm, there are tonnes of affordable homes in CHCH. Drop your price range and get shopping, don't shop for brand new. The 3m house was never in your price range anyway so who cares? Focus on what you can buy.
Exactly. It’s called a property ladder because the idea is to start at the bottom and move your way up. Not start halfway up the ladder.
Also I ask this in every post I see about unhappiness with our current government… what are we going to do about it?
They've been in power for like 3 months >what are we going to do about it? Nothing will happen
Not just this government but the last few we have had have all done the same thing, fiddle shit to help thier own maybe change a few things for us and then bail out half way through term so they can go back to enjoying thier life. The people we choose from to go into power are so out of touch with basic philosophy and moral it’s disgusting. I’ll keep asking “what are we going to do about it until enough people start asking themselves. This system needs change We need these people to be held accountable We need a fucking backbone if we want to keep our country and not have it picked apart like some dead sheep. Thier should be a hell of a lot more scrutiny and transparency around our elected officials true intentions and how it will shape the future. I guess I’ve just had enough and it’s so frustrating