Pressure on construction work changing way houses are sold

PHOTO: Photo: 123RF

A real estate agent says construction industry volatility is spurring developers to sell finished homes instead of off the plans.

The supply and price of construction materials are under huge pressure, particularly while Auckland remains at alert Level 4 and the rest of the country lower.

The head of Lodge Real Estate in Hamilton, Jeremy O’Rourke, said some builders who had been happy to forward sell were having a rethink.

House builders deterred from offering fixed prices

“Just had a couple of developments wanting to actually wait until the property is finished,” O’Rourke said.

“And we’ve had other builders who’ve just started voicing the fact, ‘Hey listen, the supply chain is uncertain, the build cost is uncertain, so maybe it’s something that we’ve actually got to look at the finished product rather than try and price it out now’.”