Bare section and new house better value in Rotorua - buyer

With Rotorua's property market suffering a well-documented stock shortage, Michelle Harris and her partner decided to build new.

The couple has bought a section in a new subdivision on Pioneer Rd, Ngongotahā, and Harris believed they could get a lot more for their money.

"We've already got our own home but it's going to be our first new build.

"We're going to get a much newer, warmer home for a better price in my opinion."

Harris said she was happy to have found a reasonably sized section. The lot they have bought for $255,000 is 990sq m.

"We don't get the title until July or August, then earthworks take four weeks, then from there we've been told six to 10 months for the build."

Now the pair is gearing up to sell their current home.

There are 12 lots in the subdivision and eight have been sold by Professionals McDowell Real Estate so far.

Harris said although buying a section and building from scratch was good value, it was only available for those looking in a certain price bracket.

Vendor and developer Geoff Kenny said the subdivision was stage four of the development of Pioneer Rd.

Kenny first bought the land in 2005 and said it had been a "nightmare" trying to develop it with some mistakes in the engineering reports causing issues.

But the 12 sections in stage four were the cream of the crop, he said.

"They are bigger than average sections sold in New Zealand today and they are on higher ground.

"The whole ethos behind the subdivision was to have the Kiwi quarter-acre dream. People could raise a family and have enough space for the kids to run around."

Kenny said delays in the consent and engineering process meant he had been able to take advantage of the Rotorua market.

"In the meantime property values went up so I have got reasonable prices.

"Even though I'm benefiting from the rise in prices I do feel for first-home buyers. It's difficult and unfair what people have to go through to get into a house today."