Graeme Perkins makes a start on landscaping his Luggate
section. Photo by Mark Price.
"Patience" is what is required for property developers,
according to Delta's joint venture partner in Luggate Park, Jim
Mr Boult, of Christchurch, was reluctant to discuss with the
Otago Daily Times details of his arrangement with Delta
except to reaffirm the joint-venture arrangement and say: "If
you want to be in the property business, you have got to be
Delta invested $4 million in a 50-50 stake in stage two of
the subdivision in 2008 but last week, the ODT reported Delta
was understood to be considering a "write-down" of up to $9
million in its investment at Luggate Park and also at Jacks
Dunedin City Councillor Lee Vandervis described it as "an
appalling property purchase".
Asked if he had undertaken a similar write-down, Mr Boult
said: "I'm a private owner. I'm Jim Boult. I'm obviously not
in the same boat they are in."
The stage two land in which Delta has an interest is yet to
be developed, although stage one of Luggate Park has streets
and services and some new homes.
The decline in the value of those sections since they were
first offered for sale was spelled out by three section
owners spoken to by the ODT.
In 2009-10, Graeme and Yvonne Perkins, of Dunedin, identified
a half-hectare section they were keen to buy in an area where
sections were advertised at $285,000.
Mr Perkins said they watched and waited as the price came
"We saw our one come down to $180,000 and then we waited
again and we got it for $135,000.""They've come way back down
and it was worth waiting.
Someone must have lost [a lot] of money."
Another Cardrona resident, Woody McMartin, said he paid
$128,000 for a section that had been for sale at one point
And Graham McArthur and partner Deb Wilson, of Dunedin, first
looked at a half-hectare section at Luggate Park when it was
priced at more than $280,000.
When they bought it at auction, they were the only bidders
aside from the owner and got it for $151,000.
Mr McArthur believed initial interest in the subdivision
might have been boosted by the prospect of Contact Energy
building the Luggate dam, and creating a lake in the vicinity
of the subdivision.
His section was one that would have had a lake view but by
the time he bought it, the dam idea had already begun to
Mr Boult did not agree prices had halved at Luggate Park and
believed changes in values there were no different to
property developments elsewhere.
"It's not special. It's no different from any other
Asked if there was likely to be any development of stage two
in the near future, Mr Boult said it depended what the market
"Clearly it's not at that stage yet. It's improving. It's
getting better but I say again, you have got to be very
patient in the property business."