New home buyers reaping the profits despite the long wait

New home buyers reaping the profits despite the long wait12 Aug 2016

Early buyers at the Ridgedale development in Hamilton's north might have a long wait before they get the keys to their new homes, but they'll be smiling all the way to the bank.

Homes sold from the plans are taking up to 24 months to build, said Yeoman Property Group property developer Andrew Yeoman, but the return on investment, 31.5 per cent in Hamilton in the past year, is keeping new homeowners happy.

"What has got people excited is that they only have to pay a 10 per cent deposit and they don't have to pay anything else till the end," Yeoman said.

Property developer Andrew Yeoman outside one of his projects, Village Quarter in Frankton.

"What that means is the people who bought from us 18 months ago? Man, have they had some capital gain and all they had to do was put a 10 per cent deposit down."

Ridgedale is a medium-density housing estate adjoining Kay Road in north Rototuna. It's the first of its kind consented under new zoning rules, Yeoman said.

Figures out of QV show prices in that area rose by 33.1 per cent in the 12 months to July.

Hamilton residential sale numbers in July showed a 10 per cent decrease from the previous month and were significantly down on the year before.

Lugton's managing director Simon Lugton, in his analysis of REINZ data, said demand has been patchy. Some properties are getting strong interest, others not so much.

However, the average price continues to rise to a record level of $510,000 - a first for the city and higher than the national average of $505,000.

Ridgedale's 145 medium-density houses have been selling hot and 120 are already under contract.

"We don't have a whole lot left, to be honest."

The three- and four-bedroom, two-storey houses sit on small sections with plenty of room for outdoor entertaining, Yeoman said.

Terraced houses are priced from $515,000 and stand-alone homes are priced at $730,000.

Yeoman, speaking from Australia, said first-home buyers using Kiwi Saver funds are lining up and second-home buyers are interested in the easy-care sections.

"People are finding that they want their weekends back," Yeoman said. "Not everybody wants to go out and tend to lawns and gardens and have all of the high maintenance."

And the housing development will be within walking distance of schools, shops and parks.

The model is popular overseas and Hamilton is catching up with the trend.

"It's all about walk-ability now," he said.

"The new town centre, when it is built, is going to be directly opposite this, so walk-ability is going to be fantastic.

The next stage of the project will be released at the weekend, when the new show home opens near Rototuna. A previous release, restricted to a wait list, sold in four hours.

"We're expecting a good uptake on Saturday when we release the next lot."

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