"At the latest annual sales rate, there are enough houses for sale to meet over 4.5 years of demand. By any standard this reflects a huge oversupply," Dickens said.
Some sellers are desperate and quitting expensive properties for low amounts.
"The higher discounts were generally for the more expensive sections, for example $900,000 down to $630,000."
The lowest asking price for a section was "inquiries over $150,000" for a section with a rateable value of $330,000.
The median asking price for a Pauanui house is $559,000 but the average asking price was much higher at $715,000.
"Partly reflecting the oversupply, the houses that sold in 2011 on average sold at a 10 per cent discount to the average capital values that were assessed on July 1, 2009. And there is a hint that the average discount to CVs increased during the year. The average discount to CV for houses sold in the December quarter was 12 per cent," Dickens said. Evans Young of Hopper Developments said Pauanui had held up well in recent years.
Hoppers released the first 40 sections in the Waterways development there last year, he said, and eight were sold for $600,000 to $700,000.
Seaside glut
HOUSES FOR SALE
2 under $301,000
16 under $400,000
51 under $500,000
31 under $600,000
19 under $700,000
17 under $800,000
30 $801,000-$2m
SECTIONS FOR SALE
18 under $151,000
10 under $250,000
12 under $300,000
16 under $350,000
16 under $550,000
24 under $750,000
36 for $750,000+
Source: Strategic Risk Analysis
