Why developers are back?!

At Bayleys, we have been closely monitoring market trends and indicators. The surge in offers from developers specifically along with the latest OCR hike is a positive sign that they may be slowly returning to the market. We are seeing housing prices start to plateau, suggesting that the market downturn is over.

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Developers often need to time their projects carefully with resource consent approval taking as long as seven months. After that, it takes another 8-10 months to build. By then, they predict that the market will have turned by the time their projects are ready for sale. However, it is important to bear in mind that material costs are still high, and Auckland Council is notoriously difficult to deal with, which may cause further delays in their return to the market.

It is essential to acknowledge that market conditions can be fluid, influenced by various factors such as economic indicators, consumer sentiment, and even global events.

Therefore, now might be an opportune time to take action. Our team is always available to provide you with expert guidance and support to navigate these dynamic market conditions.