'No bites': Central Otago subdivision lots fail to sell

Signs advertise plots for sale in Dunstan Park amid low demand for houses in the subdivision...
Signs advertise plots for sale in Dunstan Park amid low demand for houses in the subdivision.PHOTO: RUBY SHAW
An insecure housing market is driving a lack of sales at an Alexandra subdivision.

At the Vincent Community Board’s meeting, Central Otago District Council (CODC) property and facilities manager Garreth Robinson said there had been no interest in stage 4 developments of the Dunstan Park subdivision.

"The reality of the situation is we have had absolutely no bites with sales for stage 4 at all."

Dunstan Park consists of 71 lots, to be completed in four stages.

All lots from stages 1-3 have been sold and some already had houses and occupants, Mr Robinson told the board.

Final work on stage 4, which held 20 lots, was expected to be completed during the next few months.

Asphalt and footpath sealing would be deferred until September.

No stage 4 lots had been sold yet, Mr Robinson told the board.

The exposure sat with the developer who had spent $1.2million on in-ground infrastructure for stage 4.

"I know there’s a rumour going round the developer’s out of money — that’s not the case at all," Mr Robinson said.

"As long as the board understands that we will not see any profits until we start selling down those sections."

Minimum prices had been set for the stage 4 sections and he was reluctant to adjust them.

"I think we can realise ... at least those minimum prices and I’m hoping for a little bit above."

He said the housing market was insecure but he expected interest rates to come down which would promote house sales.

"Fingers crossed we’re going to get an interest rate reduction and hopefully it will start inciting a little bit of excitement back into the market."

Once the subdivision was finished, the council would accept responsibility to maintain it.