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Home / Bay of Plenty Times

Surge in subdivision sales

By Michele Hunter
Bay of Plenty Times·
19 Oct, 2014 11:03 PM4 mins to read

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Photo / John Borren

Photo / John Borren

Tauranga property developers are bracing for a busy summer as section sales return to pre-recession levels.

Paul Adams, owner of 2000-lot Tauriko subdivision The Lakes, told the Bay of Plenty Times : "Generally speaking sections sales are back at the levels they were prior to the global financial crisis."

The latest stage of The Lakes, "The Summit", was released two weeks ago and 46 of the 70 sections have already sold.

"It's pleasing to see we're in a property boom again," said The Lakes general manager Scott Adams.

Carrus Corporation rescued The Lakes three years ago when sections were not selling and owners Grasshopper Farms were in receivership.

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Scott Adams believes Carrus' approach to section finance has played a large role in the subdivision's success.

"The ability to buy sections on deferred terms instead of spending all of your money up front on the land makes a big difference to being able to finance your house," he said.

"It's a very popular way to buy sections."

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Sales and marketing manager for 2000-section Papamoa subdivision Golden Sands, Mark Day, said homes were being built by those planning to live in them, rather than builders building spec homes to sell.

There were 14 sections left in the present stage at Golden Sands and a further 171 set to be released in May next year.

Builders were selling about 10 house and land packages a month, compared with about a third of that three years ago, he said.

Mr Day said many buyers were attracted to Tauranga because they could buy a $450,000 home, which was similar in size and quality to the $850,000 one they had sold in Auckland.

Discover more

Tauranga land needed as boom arrives

30 Oct 09:06 PM

Neighbouring subdivision, Palm Springs, opened on December 1, last year and close to 100 sections have sold since.

The first stage of the upmarket subdivision opened 10 years ago and when complete will include up to 1300 dwellings. Sales and marketing representative Annemaree Crawford said demand had been steady and section prices had been well received. "There's definitely a lot more positivity now," she said.

Grant Brebner, chief executive of The Neil Group, which owns Pyes Pa subdivisions Annandale Park and The Plateau, said things had picked up in the past year. "Annandale Park in particular's been selling well and we've completed the final stage of The Plateau. Recently we've been selling about two a month in Annandale. We brought the final stage of The Plateau to the market about six months ago and about one-third of those have sold. I think it started to pick up about 18 months ago in Tauranga."

Owner of Ohauiti subdivision Rowesdale, Alison Rowe, also said sales had picked up.

"Since the election everyone's on fire. It's just been amazing. I think there's a lot more confidence out there." She had fielded calls from more first-home buyers since the loosening of bank lending restrictions and increased availability of KiwiSaver funds for new builds.

"It's been very busy. It's great to see it happening because there's a huge shortage of rentals."

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Phil Carmichael, whose family own St Michael's subdivision in Bethlehem, said they had experienced good sales this year. "2007 to 2011 things were slow but 2012 the building started again and it's kept going right through."

About 10 homes were under construction in the subdivision and they were taking expressions of interest for the next stage of 12 sections.

Manager of Lynley Park in Omokoroa Phillip Palmer was hoping for a busy summer of sales. Before the recession 120 sections had been sold, and about 40 since. "Most of those [were sold] last summer when people realised that the recession was over. They came out of hiding and we had a reasonably busy summer last year."

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