STEVES BUIILDING FEATURE.

According to figures recently released by the real estate market, average house prices in Hamilton are now over $700,000 which is an increase of 8.1% in the last quarter and up 14.5% on the previous year. Similar figures have been reported across the Waikato region.

So what does this mean for the house building market? Although it is true to say that labour and material prices have increased in recent years, they have not risen anywhere near the rate of house prices. Typically construction costs have gone up by around 3-5% each year for the past 3 years.

This means that if you can find land at sensible rates and leverage borrowing off your ever-increasing equity, at record-low interest rates, it could be considered the perfect time to build.

In addition, the ‘second dwelling’ market has shown strong growth in the last year, as rental prices continue to rise. Building a minor dwelling can be an excellent opportunity as you already own the land so only need to factor in the cost of building the house.

So we think it is an ideal time to think of building – and we say that not just because we are housebuilders, but because the numbers are doing the talking.

Steve Moore - KDH Director