Good work Mav. Don't want to rain on your parade but...
All that sounds great until one ponders that the median house price in N.Z. over the last 3 years is up about 43%. On a rainy afternoon I spent a bit of time pondering this.Quote:
B.Care suite sales are going very strongly .There are now some waiting lists on earlier C/S deliveries. Prices are stronger than anticipated. They are not worried at all about getting best dollar first time around as they can re-evaluate prices on turn over no2. We are seeing this anyway with resale CS margins a whopping 19% after only 2-3 years.
Analysts have been historically shy of the CS model as it has been unknown and untested but now have satisfactory evidence it's not only working but surpassing expectations of market acceptance and original price points.
Care suites now are derisked.
Such a modest increase relative in care suite prices to the median house price increase, (actually a decrease in relative terms compared to the real estate market average performance of 24%).
On one hand I can certainly appreciate that when they initially build a whole block of care suites on one site at one time they have to price them very attractively to fill them up as quickly as possible...I can certainly appreciate the commercial wisdom behind that and yet on the other hand I can't help pondering why (if the care suites were so attractively priced in the first release) the prices on resale are not at least keeping up with the movement in the average price of real estate ?
As you would expect...I have a couple of working theories to explain this...but its quite probably not one you folks want to hear so I won't unpack it unless people really want me to.
I hope over time the concept and market acceptance of care suites matures to the point where people see them as a lifestyle choice more than shopping around for the best deal on meeting late stage care needs.