Work to begin next month on Abbotsford subdivision

The declining property market is not affecting the plans of at least one Otago property developer.

Dunedin-based Minaret Resources manager Murray Frost confirmed yesterday heavy machinery would be moving into Abbotsford in mid to late November to begin forming the new Grandvista Estate.

The first stage consists of 39 residential sections that have been selling since May for between $125,000 and $165,000.

Mr Frost said yesterday tenders for the provision of subdivision services had been let to a local company and work would begin once some minor issues had been resolved with the Dunedin City Council and ground conditions had improved.

Mr Frost said 17 sections had been sold and four were under "pretty strong" discussion.

This number of pre-sales made the company confident about its decision to go ahead.

"The first day, there were 10 or 12 sites sold, so the confidence we had because of how we perceived the product was reinforced by the public voting with their signatures, really."

Minaret was continuing to do a "fair bit" of development in Central Otago and there had been increased buyer interest in the last few weeks, as was usual in the spring.

Asked if he thought the property market had hit the bottom, Mr Frost said the answer would depend on confidence.

"It certainly has dropped. It should have dropped. Has it dropped all the way? Has it dropped too far? Ask me in six months' time."

Mr Frost said prices had been adjusted to meet the current market.

"What people need to realise is that even if prices were to go back 25% to 30% . . . they're still up 70% on where they were five or six years ago."

The Grandvista Estate covers 20ha with the potential for up to 192 residential sections.

 

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