The Government axed “middle-class welfare” via house-buyer grants but one company has stepped into the breach; problems at one Auckland suburban apartment block have seen prices cut by up to 25%, an agent says; Cotton On’s hotel-like offices in Geelong; and urgent interim Environment Court enforcement orders were granted on
Property Insider: How to still get $10k off a new house; apartment prices cut by 25%; court orders sought over land stability fears
AdvertisementAdvertise with NZME.
Now, one house-building business has brought in its own form of what has been criticised as “middle-class welfare”.
Fletcher Living is offering first-home buyers of its new places a $10,000 grant towards their deposits. And not even Fletcher’s harshest critics object.
Homes under $875,000 in Auckland and $775,000 in Canterbury are in the scheme for buyers to get the grant towards their deposit.
“This initiative follows the recent removal of the First Home Grant,” Fletcher said. Buyers must earn under $150,000 for an individual or $225,000 for a couple.
AdvertisementAdvertise with NZME.
Corelogic’s Q1 First Home Buyers Report showed that sector remained a key presence, accounting for 26% of purchases in the first three months of 2024.
Steve Evans, chief executive of the company’s residential and development division, said the aim was to make homeownership attainable for more people.
“Owning your first home is very much part of the Kiwi psyche. It’s an exciting journey but it’s not an easy one. Getting on the property ladder can be challenging, especially for first-home buyers who work tirelessly to save up for their initial deposit,” he said.
It’s not a discount on the price or the deposit.
“It is an actual $10,000 cash contribution to boost the amount of a customer’s deposit and assist a buyer with the deposit requirements of obtaining a mortgage. The $10k will be paid directly into the customer’s lawyer’s trust account once an Agreement for Sale and Purchase is unconditional and will need to be applied by the customer to their deposit,” a spokesperson said.
Fletcher has been under fire lately after the chairman, many directors and CEO Ross Taylor left. Its annual result to June 30, 2024 is due out next month.
Sam Stubbs of Simplicity doesn’t have a problem with the $10,000: “This feels like any other incentive to me, so no strong feelings either way. Clearly in a depressed market, sellers need to encourage buyers.”
Shareholders Association chairman Oliver Mander concurs: “Fletcher Living operates in a competitive market, and this simply reflects an offer in the market that may offer them a competitive advantage in targeting first-home buyers. There are plenty of other consumer segments in the housing market who won’t benefit from this offer. From a shareholder perspective, this is simply the company doing what it needs to do to compete.”
AdvertisementAdvertise with NZME.
Apartment prices cut in New Lynn
Apartments in New Lynn’s only high-rise residential block, the Merchant Quarter, are selling for 20% to 25% discounts due to litigation alleging defects, according to real estate chief Scott Dunn of apartment realtors City Sales.
Dunn said these were the deductions in prices in the property.
“They should sell for about $500,000 to $600,000 with no issues. This is quite general,” he said noting prices could be above or below these figures depending on the size of the unit, where it was in the block and configurations.
“There’s obviously a much smaller buyer pool for these apartments so the sales can be slow-moving and challenging,” Dunn said.
Many owners were in the position where they could not accept low prices offered because their mortgages were higher than that.
“It’s a very sad situation.”
This month, the Herald revealed how litigation was launched alleging defects in the building.
Owners represented by three bodies corporate engaged lawyers Jonathan Wood and Jeanne Heatlie of Court One to prepare a statement of claim, where a detailed list of alleged roof and deck, walls and joinery, weather tightness, structural, fire protection, services and interior defects appears.
That has been lodged naming many defendants, including Auckland Council, Infratil and Beca. Spokespeople for those entities did not wish to discuss the situation but no hearing date has yet been set.
The Merchant Quarter has 12 retail units, more than 100 apartments and many lower-level car parks.
Gee whiz: Cotton On, Geelong
Global retailer Cotton On opened fancy new premises at Goodman Property Trust’s new Roma Rd estate in Auckland last week. It is a big step forward for the business, bringing together many functions, including the warehouse, on one site.
Across in Geelong where the company is headquartered, its offices look more like a hotel.
Michael Hardwick, chief financial officer and a board member, told the Herald about the upmarket facilities there, including a wellness centre.
A spokeswoman said: “Our Geelong-based office or our global support centre where we employ 1200 team members. The Beckley is the local markets where our founder started out in 1988 selling denim jackets out of the boot of his car. It’s now built into our heritage and our on-site café/reception/collaboration space is named after it.”
In Auckland, Cotton On has a fancy new office in 1.7ha premises that include the distribution centre and a gym.
The new base at Puketāpapa Mt Roskill bring distribution and support operations in this country onto one site.
Urgent interim orders sought
Auckland Council went to the Environment Court on July 4 against Eco Earth NZ, New Zealand New Oak Property and Gareth Paul Williams to get interim urgent enforcement orders at an East Tāmaki site.
The site is at 28 Smales Rd and the council sought orders that the owners immediately cordon off the area within 5m of the toe of a retaining wall to prevent access by vehicles or people until appropriate site stability works were completed.
Environment Court Judge Melinda Dickey issued a decision which included that the construction plant parked at the top of the slope stay back at least 10m from the edge.
Most of the site’s southern boundary is shared with a Mobil Service Station, which operates beside a car dealership, she noted.
Significant earthworks came to the council’s attention last October yet there was no consent granted. There was potential for adverse effects to arise from the failure to install appropriate erosion and sediment controls and the site where the stockpile was positioned was unstable.
A partial slip and portions of the stockpile had collapsed across the site boundary, the decision said.
Orders were sought ex parte.
Williams confirmed before the hearing that work required was under way. But he said the ground was too wet to carry out some work and his primary concern was that machinery would sink into the ground and become stuck. He also raised the issue of potential damage to a methane gas line if works ordered were undertaken.
The judge granted the interim enforcement orders and said work carried out had been in breach of the Auckland Unitary Plan and had adverse effects on the environment.
She was in no doubt that the slope along the site boundary shared with the Mobil station and car dealership was “oversteep”, which gave rise to concerns about its potential failure and impact on structures on those properties.
She noted there were issues between the landowner respondent and Williams about what had occurred at the site.
Anne Gibson has been the Herald’s property editor for 24 years, written books and covered property extensively here and overseas.
