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Lack of houses for sale pushes up demand for sections, Harcourts says

Posted in News

Harcourts CEO Bryan Thomson said anecdotal feedback from around the real estate group indicated the level of buyer interest in residential sections had risen notably in recent months, in part because of a shortage of houses for sale. Thomson said the renewed interest followed months of little or no enquiry and had lifted Harcourts' number of section sales.

"From all sorts of locations - major metropolitan centres through to smaller regional towns - we've had reports that there's a renewed level of interest in sections and also an increase in the volume of sales, after what has been a very quiet period for this segment of the property market," Thomson said.

"In part this is because the volume of house sales has increased in recent months but there hasn't been an abundance of new listings coming to the market, so for the large number of serious buyers there is actually a shortage of houses for sale and they are therefore having to consider buying a section and building instead," he said.

"When coupled with the fact that the asking price for sections has come back, by up to 30% in some cases, and that the cost of building materials and labour have eased as suppliers and tradespeople "˜sharpen their pencils' this option has actually become a pretty attractive proposition."

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That may all be about

That may all be about to change.

This morning the OCR became ineffective at controlling interest rates with a major T bill auction failure:

NZ Government suffers the indiginity of Dr Bollard's imprudent intention to cap the OCR at or below 2.5% until the later part of 2010.

Harcourts CEO Bryan Thomson says

Harcourts CEO Bryan Thomson says "so for the large number of serious buyers" - Yeah right!

Andy, obviously you are not

Andy, obviously you are not one of the "large" number of serious buyers.

PeterR, that's explosive stuff on

PeterR, that's explosive stuff on that link. How long before the stuff hits the fan in your opinion and how far will it splatter?

"Thomson said the renewed interest

"Thomson said the renewed interest followed months of little or no enquiry.."
I guess one enquiry is a notable lift enquiry.

Wally. It doesn't look good,


It doesn't look good, but it has been on the cards.

I presume either the RBNZ will have to lift the OCR and Treasury will start paying a higher rate to attract bids, or Treasury will issue more longer term money at rates even higher.

Sounds like the RBNZ has cocked up big time - egg everywhere.



Hmm.. $56 successful of $400


$56 successful of $400 offered: counts on fingers, why, that's just over 1/8th....

The Creditors Revulsion has started.

Seems like the end of

Seems like the end of the phony war has arrived folks. Now the hun will be at the doors demanding their price for their money. No more tiddlywinks down at the RBNZ. Bollard going short to cover the long end, jeez wasn't he the one telling the banks to go long and avoid the shorts. And what's that wee bit about "clipping the coins". Alan , what are you up to?

Wally. Egg on face? Bollard


Egg on face?

Bollard has been trying to keep the short end down but it would be Treasury i.e. the taxpayer benefitting. But the market no longer believes the RBNZ is omnipotent.

Although I expect interest rates

Although I expect interest rates to rise I am surprised that this has happened now.

Given that many are expecting a correction in the equity markets I would have thought that a lot of money would have flowed into short term T-bills as a capital preservation strategy.

Is the demand for short term Govt debt domestic or foreign? Do we know who has gone on strike.

Looks like Aussie RB is

Looks like Aussie RB is signalling rates to rise - so we will probably be dragged along for the ride

PeterR, that omo link is

that omo link is very interesting. Thanks for posting it

Sounds like the usual spin

Sounds like the usual spin from Harcourts, it gets rather tired doesn't it???
I have been keeping my eye on vacant sections on Trade Me the last few months
and very few of them have been shifting. A couple in particular were on there for a long long time, they were finally withdrawn, I've seen them re-appear in the last few weeks advertised at higher prices, vendors no doubt believing the unreal estate hype

I agree with Matt, we

I agree with Matt, we are currently renting and have been seriously looking to buy for the last year, but no quality houses for sale, vendors still wanting high prices, and sections in our area are still in the $350k-750k range. The numbers still don't stack up for building and we would end up spending more than the house would be worth when finished. So we continue to wait and look and ignore the real estate agencies hype!