Housing crunch: ‘You can’t build them for these prices’
Photo: 123rf.com
If you have looked for a house recently, you might have been told: You cannot build them for what you can buy them for at the moment.
While it is common for new builds to have a price premium over existing houses, in part because they are often built to higher specifications and should need less maintenance, the premium is higher than normal at the moment - whether you are buying from a developer or trying to build on bare land yourself.
Using data from Trade Me and CoreLogic, RNZ estimated that it would cost about $1.5 million to build a house in Auckland with the median floor area of 154sqm, and on the median section size of 600sqm, at the median sale price of the city's bare land. This assumes a build cost of $4000 per sqm.
The median asking price on Trade Me is $986,...









