Housing subdivision release delivers on mayor’s promise
Housing subdivision release delivers on mayor’s election promise
A policy promise by Rotorua mayor Steve Chadwick at last year’s local body elections is about to be delivered…. and budding home owners in the city are lined up to be the lucky recipients.
During the 2016 mayoral election campaign, mayor Chadwick canvassed hard on a promise that the council would assist property developers to bring 1000 new residential sections in the city to the market for sale.
Rotorua property company Baxendale Developments has placed the 24 sections up for sale in its newly created Baxendale residential enclave, 10 sections bordering the Utuhina Stream. Access to 21 lots is off Baxendale Drive and 3 lots is off Pukehangi Road.
The sections range in size from a conventional 686 square metres up to a ‘lifestyle block’ type property of 4636 square metres more or less. All 24 sections are to be auctioned ‘back-to-back’ on May 18 by Bayleys Rotorua – with no sales being signed off ahead of the auction.
“Auctioning so many sections consecutively is a well considered move for the vendor, this process delivers a fair, clean outcome,” said Ms Millard of Bayleys Rotorua. “When market demand is that pent up, the best and fairest way to determine true value is by auction… letting buyers set the benchmark for where they see worth.”
“And to ensure everyone has a fair crack at buying one of the 24 Baxendale sites, we are extending the standard one month auction period out to five weeks – allowing all potential purchasers to secure their necessary financing ahead of bidding.”
Unlike standard real estate sales processes, there will be no sales of Baxendale sections ahead of the auction. Open days are being held on site on four consecutive Sunday mornings from April 23 – May 14, between 11.00am and 12.00pm. Successful auction winners will be required to pay a 10 percent deposit on the fall of the hammer, with the remaining 90 percent payable when the individual certificates of title are issued.
Engineers’ plans for the installation of utilities such as power, water, sewerage and gas have already been drafted – with earthworks to install roading, underground cabling, and pipes already underway.
Ms Millard said that based on previous sell downs of new residential subdivisions around Rotorua’s city fringe, the agency is confident of achieving a sellout success under the hammer, 18 May 2017.
“Since 2015 though, the availability of sections on any degree of scale in Rotorua has been non-existent. It’s taken some two years for developers to catch up, and in that time values have risen by nearly 20 percent,” said Ms Millard.
“That is another reason for using auction rather than a set price sale method.”
Mayor Chadwick’s call for more Rotorua sections, such as those in Baxandale, to be subdivided and made available for purchase has constantly been supported by the wider Rotorua business community – including the Rotorua Chamber of Commerce and home building firms such as GJ Gardner.
Ms Millard said: “With the Baxendale subdivision sections being the first to come onto the market in the city’s current population and economic growth spurt, the buyers of those sites will be at the front of the queue for submitting their building consents to the council, and will consequently be the first to be able to lock in building contracts.