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Interest In Subdividing Increases After The Election

High Interest in Subdivision

It’s not surprising that confidence is recovering post-election.  But what is surprising, is the speed of resurgence in the small-scale subdivision market.  Term mortgage rates have now peaked and look to settle over the next year or so – perhaps not at the level that we saw before COVID, but certainly at a level that we have all been relatively comfortable with in the past.

This is setting the scene for a lift in subdivision activity along with a demand for new sections to build on.  We are now seeing that overall housing prices have started to rise, following the post COVID correction that was expected.

Savvy property owners with subdivision potential, and keen to make the most of the coming demand for lifestyle blocks and residential sections, are now keen to engage in the process again.

Starting early when the specialists in the subdivision process are all available is the key to success, rather than suffering the inevitable delays later in the property cycle when everyone is busy and overcommitted. Over the past few years there has been unprecedented demand for the professional services, contractors and council staff required to assist in the subdivision process. In recent months we have seen the availability of these people pick up, but suspect that won’t last long at all with the current uplift in confidence and enquiry.

With demand picking up and still an historical shortage of homes for ordinary New Zealanders, this imbalance will quickly lead to greatly increased purchaser demand again. So, if you have the cash resource and land available to cut off a residential section or lifestyle block, now is a good time to start investigating the ability to subdivide your land.

Stable interest rates, albeit not at historical lows, and the demand for land are key to the next uptick in the property cycle. Coupled with the banks’ willingness to lend again, flowing from a growing confidence that land is not overpriced, there is every chance that demand will return real soon.  Those who have started the process early enough will be the winners in the next cycle because it takes time to create new titles. The time frame to complete a straightforward subdivision can easily be over a year, even without undue delays in obtaining expert reports, resource consents and construction. 

Whether you have been eying the possibility of subdividing your farm or residential section for a while, or have recently wondered about it, there may not be a better time to act. Feel free to give us a call today, to help you make the most of your land.