The housing crisis isn’t a shortage of homes, it’s lack of demand. With sales stalling, is Olly’s prediction of a 7-10 year ‘zombie market’ coming to pass?
It seems that the ‘housing crisis’ is not so much a shortage of homes, but a severe lack of demand. With listings dropping, and sales stalling it seems that my prediction of a ‘zombie market’ lasting for years is coming to pass. Cutting interest rates is a profitable advantage for commercial property investors, but of little use to home owners who are terrified of borrowing large sums no matter what interest rates might be.
– Olly Newland
Developers are quitting Auckland projects and instead of building 68 new residences are now seeking urgent or fire sales, an agent says.
James Law of James Law Realty on Shortland St yesterday said this about the Shanghai-based owner of bare land at 46 Upper Queen St on the fringe of the CBD in Newton.
Now, the Auckland owner of a Ranui redevelopment site in west Auckland has abandoned his large-scale residential plans for around 33 new homes and also wants to sell.
Sales are being sought as fast as possible and the developers are willing to take offers, Law said.
He described the Shanghai vendors as seeking a “desperate exit” from 46 Upper Queen St where they ditched plans for 35-unit nine-storey apartments, while the Auckland owner asked him to put “fire sale” in the marketing of the west Auckland site.
“Following the desperate exit of the vendors of 46 Upper Queen St, we are also approached by another developer of Chinese origin and we were instructed to sell this urgently,” Law said.
“The owner came to our office in a haste and literally holding my hands requested to sell this site urgently. They even suggested to put down words such as fire sale,” Law said of the property at 42-52 Munroe Rd, Ranui where 33 new places were planned.
“They do not seem to be looking for a premium on the prices and I genuinely believe they are extremely serious in achieving a quick sale,” Law said of the two vendors.
James Kellow of NZ Mortgages & Securities said his business had loaned money to the vendor of the Ranui property, Richard Lan Zhen.
But the two sale situations were quite different, Kellow stressed.
Source: NZ Herald
(Photo: 42-52 Munroe Rd, Ranui)