THE YEAR AHEAD
DIFFERENTIATION - Cute word or warning
The Year Ahead
Belated New Year's greetings to our worldwide clients. We're all back at work and the mood is rather frantic. Yes I'm having to take a couple of long weekends back at Pauanui Beach to catch my breath. The positivity out there is something New Zealanders get uneasy with especially if it is as prolonged as we have enjoyed for the last four years.
Will it continue? Yes and No.
This year City Sales sees the Apartment Market splitting in two directions, effectively differentiating. The "intrinsic" value (look it up) of ALL suites we sell is below replacement cost - because of construction costs predominantly, but also rising land values.
On expert advice we don't see a downward correction in construction costs at any foreseeable stage. However, 2005 will see a proliferation of smaller units completed and we have made ourselves very unpopular with factions in the City Apartment Market in our aggressive criticism and lobbying of the Auckland City Council on issues of size and aesthetics.
We say the better buildings will strongly appreciate in value but the "shockers" (which we believe the Council will no longer allow to be built) could crash a bit. That's real estate speak for "crash".
Will these cheap end studios be worth buying? If you accept the concept of "intrinsic value", hell yes.
If you follow the City Sales website you will know we refuse to sell product off plans unless we absolutely believe in it, so no, we didn't produce the stock we are so vocal about, but we will resell it once it is built and viewable.
There will be unprecedented bargains here.
Shelley is taking me to see Rod Stewart in Christchurch in February. Rod doesn't know me yet but I hope he will exuse my plagiarism which is how we see 2005...
"Never wait or hesitate, get in kid before it's too late, you may never get another chance!"
Apart from this window of opportunity Auckland is fast approaching the unaffordability of good real estate as in Sydney and Melbourne. 2005 is the year to commit. Good luck and talk to us first for no hype no nonsense comment (no matter how unpopular we sometimes get!)
MARTIN
