Marketing started this week on one of the first greenfields subdivisions in the Wakatipu for some time.
Hayes Creek, developed by local contractor Paul Horrell, adjoins established Lake Hayes Estate, the Kawarau River and reserve land.
Thirty house/land packages are being offered initially, from $475,000, by local real estate agency Hoamz, with another 12 to come later.
Buyers can choose between a finished home or one off the plans where they can have a say in the finishing touches.
Homes – all three- or four-bedroom – will have a traditional look with gabled roofs.
The subdivision was originally marketed two years ago but pulled due to the difficult economic climate.
“We couldn’t have started, in hindsight, at a worse time,” Hoamz agent Brendan Quill says.
Quill, however, believes the timing two years on is much better.
“We’ve got first-home buyers champing at the bit for brand new homes, and not enough to sell them.”
There’s also a shortage of rental properties, Quill says.
‘No urgency to seal deals’ A $4 million Lake Hayes lakefront sale was a real estate highlight last month.
Local Real Estate Institute spokesman Kelvin Collins says the sum was paid by an undisclosed buyer for two old houses and an adjoining vacant section.
“This reflects that when a property has an ‘x’ factor, buyers are still prepared to spend.”
There were 46 residential sales in the Wakatipu last month, compared to 42 in October.
Thirty-nine dwellings and apartments sold, for $19,385,460, and seven sections, for $5,310,000.
“Buyer enquiry is good but there’s no urgency to make a purchasing decision,” Collins says.
Hayes Creek prices have been pulled back a bit to make home ownership more affordable, he adds.
Rental returns of up to five per cent are now predicted.
Quill believes the key to Hayes Creek is consistency.
“You sign a contract and that’s it. Who needs a budget overrun at the moment?”
Quill says home builders often under-estimate the costs of finishing a home to a high standard and forget about items like landscaping, carpets and fencing.
The other aspect is that buyers, thanks to subdivision covenants, know what their neighbours’ homes will look like, Quill says.
“Growing up in Southland, we knew our community, we were friends with our neighbours and we played in the streets.
“Hayes Creek draws inspiration from those times but uses modern materials to bring the homes into today’s market.”
Aside from the demand for new homes, Quill believes the subdivision’s sunny north-facing aspect, views, access to the Kawarau River and other amenities and proximity to Lake Hayes Estate and Frankton make it an easy sell.
With services in place and titles due in the first quarter of the New Year, the developer will start building the first four homes next month.
It’s planned there will always be four to six ‘stock’ homes available for purchase as well as a showhome to view.
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