TelferYoung (Northland) Limited
Current | 2011 | 2010 | 2009 | 2007 | 2006 | 2005
Northland Newsletter - February 2006
1 February 2006
Issue 10
Whangarei Residential
Over the latter part of 2005 the residential property sector in Whangarei City continued to show growth across most price brackets. At the lower end of the scale there are very few properties under $170,000 and at the upper end sales in excess of $500,000 are now common. The lower end price bracket and especially "lower cost group housing" localities have shown the highest levels of growth in the second half of 2005. Examples of this have been shown in Tikipunga, where a two bedroom 1980's group home sold in May 2005 for $153,000 and resold in October 2005 for $215,000, indicating a 40% increase over this period or approximately 8% per month. Similarly in Raumanga South a low cost housing locality, a basic two bedroom 1990's dwelling sold in September 2004 for $115,500 and resold in October 2005 for $175,000 indicating a rise over this period of approximately 50% or around 4% per month.
Although we are still witnessing growth in some sectors of the market, it is now showing signs of levelling out with prices remaining steady, and time pressure and buyers having reduced significantly. The period of time it takes to sell a property has increased over the last three months, with this being particularly prevalent in the higher price sector of the market. Whangarei has been a seller's market for the last three years, however we are now seeing a more balanced situation.
There has been an increased demand for residential properties with redevelopment potential, especially suburban infill subdivision in almost all Whangarei suburbs. With section prices in new subdivisions being at relatively high levels, any subdivided suburban infill sites are proving popular to both owner occupiers and townhouse developers.
Coastal Property - One Tree Point to Langs Beach
Who says the coastal market is correcting?
Over the last couple of months, the property market has received significant negative press from both the Reserve Bank Governor, and the Minister of Finance, attempting to cool things down. Despite this, there have been several new highs established for developed properties at One Tree Point, Waipu Cove, Langs Beach, and for a superb site at Mangawhai.
However, we believe the market is sending out mixed messages. At the top end, where buyers show little regard for interest rates and wider economic conditions, purchasers are continuing to show good interest in quality properties. In contrast, purchasers in the lower to middle price brackets, who are far more interest rate sensitive, buyers have thinned out and sales are definitely slowing.
Further evidence of a two tier market came to hand recently when 29 lots of a 49 lot subdivision, were released onto the market at Langs Beach. Within 6 weeks, 17 of these lots have sold, and a further 7 are either under contract or sold to related parties. All in all a very good result for the developer.
Only time will tell whether the top end of the market corrects in line with the other sectors. There is no doubt there are less buyers seriously looking for coastal properties, but only time will tell whether this is the end of the bull run, which many of us predicted would happen around twelve months ago.
Commercial - More of the Same?
Market activity in recent months has followed the path of much of the previous year. There have been limited transactions and it is difficult to be conclusive as to the impact of those sales on market movement.
A very recent transaction of a multi million dollar property produced a yield below 8%.
Certainly there appears to be less interest in property as an investment medium where there is no security of tenure. Where strong leases are in place confidence remains and yields have not altered.
With the long term nature of property investment, a short downturn is considered an ideal opportunity for the savvy investor who has been out of the market for much of 2005 to re-enter and acquire quality property in strong locations which inevitably stand the test of time.
Trees and Views
Trees growing in an urban environment at times can be extremely testing for neighbours. Their leaves, restriction of views, shading and risk of damage to adjoining properties can cause and frequently causes friction between neighbours. In some instances it is not only the immediate neighbours who are affected but properties some distance from the offending trees.
It is well known that if one purchases a property with the trees in existence, there is little one can do. However if a neighbour plants trees and they grow either to shade your property or spoil your view, relief is available.
With the vast increase in lifestyle blocks fringing the city and not lying within the urban zoning, the risk of views being spoilt by trees is also present. This does occur and because it is in a rural environment, there is no relief available to the affected party. The only means of obtaining relief is negotiating with the owner of the trees. Again this can cause friction and sometimes involves the depreciation in value of the property whose views have been diminished or ruined.
It is perhaps timely that legislation or regulations be introduced, whereby the affected party has some means of obtaining relief to preserve the value of their property.
Sometimes trees are planted to give a land owner privacy or shelter but when the trees are planted, consideration should be taken of their long term impact on neighbours.
If the parties involved cannot agree there should be some simple mediation service available which can provide some binding agreement which provides a solution for both parties.
Trees have a habit of growing and due to their slow encroachment of view lines, often this is not noticed until the view is largely gone. We would recommend any purchaser of land with good views who runs the risk of having it "grown out", take photographs of the view when they purchase and prior to the planting of any shelter belts by any neighbour. If there is a risk of the trees diminishing their views, it would be wise to address the problem earlier rather than later and best solved by an amicable arrangement between the two parties rather by litigation. If one is planning a subdivision where views are involved, it is wise, in order to protect the future purchasers of any lot within the subdivision, to have height restrictions on houses and/or vegetation to protect the views of the various lots throughout the subdivision. Any purchaser within a new subdivision should seek those types of covenants before purchasing.
New Staff Member
 Craig Russel |
Back issues of the newsletter can be obtained from TelferYoung (Northland) Ltd
17 Hatea Drive,
PO Box 1093,
Whangarei,
New Zealand.
Telephone : 09 438 9599,
Facsimile : 09 438 6662
www.telferyoung.com
email: telferyoung@northland.telferyoung.com
+ Alistair Nicholls + Steve Baker + Mike Nyssen + Grant Algie + Julian Rattray + Nigel Kenny + Mark Aslin + Craig Russell + John Hudson + Aaron Hunt + Martyn Cottle
Opinions expressed in this newsletter are of a general nature and should be used as a guide only. TelferYoung should be consulted before acting on this information.