How did a city that lost thousands of houses to earthquakes end up with a major oversupply, esp. terraced homes?
- The first answer is earthquake insurance money finally caught up with, & overtook, the market, as builders went berserk trying to fill the housing void.
- Moreover, claims were settled and damaged stock repaired – an unforeseen element of this was the brisk trade in as-is, where-is houses.
- Market forces were also promoting even more building, with LVR exemptions for new builds – that one can get a mortgage for a new build on a 5% deposit.
- While some people view it as a negative, developers think otherwise, saying it’s more to do with the type of product & the location of the product.
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