Steve Hart: Meth testing limits raised

The Meth problem is now so widespread that buyers should carry out their own tests before agreeing to buy a property. Photo / 123RF

Standards New Zealand has raised the safe limit of Meth contamination in residential housing to 1.5 micrograms per 100cm squared - up from 0.5.

The standard covers what it calls acceptable levels of methamphetamine residue in bedrooms, living areas, kitchens, sheds and garages following decontamination of an affected property.

First National Real Estate CEO Bob Brereton compares the Meth situation to the leaky home syndrome saying contaminated properties will likely sell for less than a comparable "clean" property.

He says any level of Meth or P residue in a home should be disclosed to potential purchasers by real estate agents.

The Meth problem is now so widespread that buyers should carry out their own tests before agreeing to buy a property.

Rising apartments
The number of apartments listed for sale in June was almost double that of May, says Vanessa Taylor of RealEstate.co.nz.

In June, 800 apartments were listed on its website compared to 453 in May.

Taylor says the average asking price for an apartment in Auckland is $679,170 and believes apartment prices are dragging down average home prices across the city.

However, the banks are playing hard to get, loan to value ratio rules are biting investors and foreigners are still coming to terms with having to open a local bank account to buy property here. Right now, cash is king.

And while some apartments may be cheaper than freehold houses, apartment buyers need to consider annual body corporate fees and ground rent for leasehold properties.

Andrea Rush of Quotable Value says there is anecdotal evidence from valuers and estate agents that property values have dipped in the past three months.

Areas taking a hit include Auckland City East and South; Waitakere, Manukau-North, West Papakura, Franklin and Auckland City apartments.

Consents falling short
The total for dwelling consents in the 12 months to May rose to 10,379 in Auckland, 5000 short of what was needed.

Westpac economists say there is an overall shortfall of 35,000 homes, and believe Auckland's housing shortage will get worse before it gets better.

They say many apartment developments have been cancelled due to funding difficulties.