Apartment fees of 30pc blasted

Monday 26 July 2004

The days of greedy developers skimming the cream off the managed apartment market in Queenstown were nearly over, Southern Lakes Realty project manager Warren White said yesterday.

By The Landlord

Enormous growth in the resort town's apartment market meant some developers now needed to seriously look at lowering the percentage take for the management of the apartments, Mr White said.

For years developers in Queenstown had been on-selling the management contract of their apartments for 30 percent.

"Then you get the cleaning of the apartment, laundry fees and other fees loaded on top of that – doesn't leave the owner much for their investment.

"There have been too many greedy developers. They will have to lower the fee structure or be driven out of town," Mr White said.

New apartment developers had been more realistic and set the management take at between 12 and 20 percent. The Rees (SMG Properties), a $90 million top-of-the-range 68 apartment block, launched this month, had set the management fee of the apartments at 20 percent.

Read More - Opens in a new window
Commenting is closed

Property News

Consents fall could have been worse

New dwellings consents dropped in April. That didn’t surprise anyone but economists were surprised that the drop wasn’t bigger.

House Prices

House price drops are short-lived - Alexander

Periods of house price decline are rare and "short-lived", says economist Tony Alexander, amid forecasts of a drop of 10%-15% this year.


Resilience needed in face of change

The Reserve Bank says the commercial property sector is vulnerable to the Covid-19 crisis. But PMG Funds' chief executive believes that while there’ll be short-term pain, the biggest long-term impact will be structural change.


Mortgage lending slumps to record low in April

Mortgage lending fell to its lowest level on record last month as the property market ground to a halt during the Covid-19 lockdown.

Site by PHP Developer