10 Mar 2009

Lower prices expected when apartments hit market

12:39 pm on 10 March 2009

An Auckland real estate agent says a glut of apartment buildings in the inner-city will hit the property market in the next few weeks, selling for a fraction of their cost.

CitySales managing director Martin Dunn says six apartment buildings involved in finance company collapses are due to be finished over the next few weeks.

Mr Dunn says the surge will inject almost 1000 new properties onto the market.

He says the situation is a result of failed Blue Chip investments, where people bought apartments at inflated prices.

Mr Dunn says settlement dates on the properties are coming in March and April, and it is likely investors will be unable to settle and the apartments will be sold.

He says the apartments are likely to be sold for a fraction of their value, and will be quickly bought by property investors.