Lake Tekapo's section sale bonanza is running out of steam, but rather than it being the start of a slump, it will be replaced with steady growth, says CRT Tekapo real estate agent Susie Williams.
Thursday, May 19th 2005, 7:06AM
by The Landlord
After three years of exciting capital growth and sales (values jumped 83 per cent between 2000 and 2003) the section market has consolidated, she said. Land prices are stabilising and there are around 20 sections for buyers to choose from.
"It is now an established market and prices have settled."
Farmer and land developer Andrew Simpson, who set up the 44-section Mount John subdivision on the western edge of the township, has no plans for further subdivisions in the short-term. And Lake Tekapo Park, the company involved with the large Lochinver Run subdivision on the slope to the eastern entrance of the town, is considering postponing the release of the 40 odd sections in stage three of its development.
Mrs Williams said the demand for existing homes is still strong. She expects five years of solid growth and building.
"The last three years have been amazing, but in five years this will be a completely different town."
More than 50 Lochinver Run sections have sold. Remaining elevated sections, with good views, are in the mid to upper $200,000 bracket. Those lower down the slope cost less.
