Savings of $100Kplus identified as first KiwiBuild ballot closes

AUCKLAND: New Zealand’s first KiwiBuild buyers are about to get the keys to their own homes and new data shows they may be hitting the jackpot, securing $100,000plus profits from day one.

Ballot entries for the first 18 homes — in Papakura, South Auckland — closed at midnight last night.

The winners will then be drawn at random and notified by email in the coming week.

Yesterday, 85 firsthome buyers were in competition for the homes, having sent in 1030 ballot entries between them.

The homes comprise 12 threebedroom houses selling for $579,000 and six fourbedroom houses at $649,000 — prices that appear to be a steal.

The houses are selling for at least $100,000 less than what they might fetch on the open market, according to ‘‘ball park’’ estimates by property analysts CoreLogic.

The analysts found ‘‘similar’’ threebedroom homes in Papakura built after 2000 were at present worth a median price of $684,500, and fourbedroom homes a median $769,000.

It was not hard to imagine why Auckland firsthome buyers were ‘‘really jumping’’ at the chance to buy KiwiBuild homes with three or more bedrooms, senior research analyst Kelvin Davidson said.

The pricings come amid criticism the KiwiBuild programme is a Governmentsponsored lottery in which only a select group of firsthome buyers get the chance to benefit.

Ultimately, the Government hopes to overcome some of this by building 100,000 KiwiBuild homes over the next decade.

So far, supply is limited. In addition to the Papakura houses, a further 25 KiwiBuild houses are for sale in Onehunga, where ballot entries close on October 15.

A separate ballot for 10 houses in Wanaka opens on Monday.

Couples earning up to $180,000 and singles earning up to $120,000 are eligible to enter the ballot for the houses.

Successful buyers are unable to sell the homes for at least three years — a measure designed to stop investors selling for quick profit.

Housing Minister Phil Twyford earlier defended the decision to allow firsthome buyers with higher incomes to apply, saying the random nature of the ballot meant the homes would be available to richer and poorer families alike. — NZME