There were 220 applications for 24 residential sections in the latest release of sites in the Parklands Napier residential subdivision. The allocation was drawn by ballot.
Congratulations to the lucky few and better luck next time to those who missed out.
This indicates to us two things, they have been under-priced, and there is a shortage of sections in Napier at the moment.
Time will tell, but this indicates to us that despite the huge value growth in the past 18 months, there may still be further growth yet to come.
As registered valuers we rely on market information from sales to determine market values for properties we are valuing. The way the Napier City Council sell these sections is by dictating the price and not allowing competitive bidding to maximise the price. They hardly reflect free market transactions. We will be unable to place much weighting on this evidence when assessing market values.