How much will Bill’s new houses sell for?
The Government could make quite a tidy sum from the houses it is building on Auckland’s North Shore.
Between 1000 and 1200 new houses are to be built on Housing New Zealand land in Northcote, but only 300 to 400 of them will be kept for social housing, while the rest will be sold off as ‘‘affordable’’ or ‘‘marketprice’’ houses.
Real estate agents spoken to in the area said Northcote was a mixed, humbler neighbourhood, but very close to milliondollar Takapuna and the CBD.
A two-bedroom unit would be unlikely to sell for less than $650,000, one agent said.
Sharelle Benson of Premium Real Estate said as far as two-bedroom dwellings went, there wasn’t much on the North Shore that sold for less than $800,000.
‘‘It all depends on the developers, the developers have got to make a profit.’’
She said once people had gone to Northcote, Forest Hill, Glenfield or Beach Haven for cheaper housing, but now a twobedroom standalone dwelling in Northcote would be hard to find for under $750,000.
Two-bed apartments in an ordinary part of Takapuna which had been selling in the ‘‘high-$400,000s and $500,000s’’ before the market took off were now in the ‘‘sevens and eights’’.
Even a four-bedroom joined unit in Hauraki which had sold for $900,000 eight months ago was now worth $1.1 million to $1.2m.
Benson said the market was being driven by a fear of missing out, with a lot of retirees ‘‘buying down’’ before they went into a retirement village, and she was seeing younger couples with families now looking at units, which they hadn’t before.
Another agent, Mandy Taylor of Ray White, said there was a real lack of affordable housing on the Shore and an upsurge in developments cramming large numbers of units on small sites.
She had recently sold a very standard three bedroom, 1 bathroom house in Northcote recently for $1.18m at auction, even though the reserve was $900,000.
‘‘Up here some of the houses are going like hotcakes,’’ she said.
The Northcote Development will be built by the Hobsonville Land Company which has not yet outlined its pricing.
However, it has said that there will be a mix of one to four-bedroom dwellings of different types, ranging from apartments and terraced housing to standalone dwellings.
Its affordable homes will vary, but they will include the company’s ‘‘Axis Series’’ houses, which are attached, semi-detached and terraced houses priced at or below $550,000.
What the market is like in five years, when the project is expected to be complete, is hard to say.
The extra supply could dilute prices but agents think the migration demand is currently so strong, there will still be plenty of buyer competition.
Minister Bill English officially launches stage two of the Northcote development plans.
Mandy Taylor of Ray White Northcote development plans for stage two.