Remember the old saying from childhood: “Sticks and stones may break my bones, but words will never hurt me”? Fast forward to 2024, and apply it to the real estate landscape, and it appears that ‘words’ really can hurt.
When it comes to completing due diligence, especially in a market without the presence of FOMO, it would appear that even the mere suggestion of a 1/100 year weather event during a due diligence period is enough to put a buyer off any given property. Never mind the fact that anyone living in Wellington is living on a known fault line, buyers have little perspective on these matters. Here are some common examples;
Extreme wind zone
Growing up, our good family friends lived in York Bay, Eastbourne, and on the rare occasions we stayed overnight, it was so windy you could be forgiven for believing that the house would lift off the hill and end up in the ocean. The house was a classic 1950s timber-frame weatherboard home, built with nothing more than nails and solid native timber. Today, building on that site (where the family still resides) requires a specific engineering design—essentially, a bunker. Yet, this 70-year-old home stands strong, having weathered many storms and two changes to the building code.
1 in 100-year event
As I reviewed a council map highlighting a potential flood zone, I found myself confused. The house is perched on a hill, and if it were to flood, that would mean all of Wellington would be underwater. Much of this modelling is difficult to reconcile—have the experts actually visited the property?
Flooding seems to have become this decade’s equivalent of earthquakes; we’re now fixated on it.
My parents lived in the same house in Masterton for nearly 50 years, where we enjoyed countless adventures by the creek. While the creek would occasionally lap onto the lawn—an exciting sight—no water ever reached the house. When the property was finally put on the market, the primary concern from potential buyers was the creek and the possibility of flooding, despite its history of safety. It’s akin to trying to sell a brick home in Christchurch—common sense needs to prevail. Perhaps a closer look at history, rather than just models, would provide more clarity around the reality of these claims.
Council Consent
Council LIM reports, or Land Information Memorandum, have been available for purchase since the early 1990s. However, very few people were aware of what information they contained until more recently. In fact Auckland was the first region to prioritise reviewing LIM reports as part of property due diligence and this put an end to the notion that ignorance is bliss.
We’ve become a litigious society, evident in the traffic management and cones currently scattered throughout the city. Before this change, many individuals in the industry didn’t follow processes from start to finish or realise how significantly lapsed consents could come back to haunt them. Numerous properties underwent renovations during the early days of the consenting process, often without proper consent. Given that this was over 30 years ago, it’s unlikely that anyone remembers the specifics of the work done. For those who adhered to the rules but didn’t get everything signed off, issues may only now be surfacing.
Moisture
Time serves as a reliable indicator of quality workmanship and the durability of materials used. Ironically, many modern homes, despite receiving council approval, are less likely to withstand the test of time. Just look at what happened to the Statistics building during the 2016 Kaikoura earthquake!
It might take a few generations more for us to get over the “elevated readings” that pop up in building reports, the dark cloud of the leaky homes period still hangs over the psyche of home buyers. An elevated reading might be an indication of some potential ingress, but it might be also nothing.
The truth of the matter is that all most dwellings will have some ingress over time, which could be due to the breakdown of a seal, a freak weather event or some detailing that was never finished off. Plenty of times we have investigated an elevated reading only to find nothing with the likely cause classic condensation. Having an elevated reading isn’t the end of the world, if it is just a spot it is unlikely to be anything major.
As the old saying goes, don’t throw the baby out with the bath water. The truth is that a house without an elevated reading likely means that the builder didn’t pick it up or find the spot. Go through anything with a fine-tooth comb and you will find issues. My conclusion on that, stop comparing old with new.
The Wellington Market
As we accelerate into the final months of the year, we’ve seen a significant increase in listings, with 6-7 more weeks to launch before the annual Christmas shut down.
It appears that more buyers are entering the market, including a resurgence of developers and investors—yes, investors are coming back! This could lead to renewed competition with first-time home buyers.
The capital seems to be navigating its challenges, and I think we are all looking forward to a fresh start in 2025.
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What’s on in Welly?
7 Days Live, Michael Fowler Centre, 8 November 2024
It’s a simple equation — comedians on the road plus live theatre equals mayhem. The crew from ‘7 Days’ have dispensed with the comfort of the television studio and hit the road. The long-running television comedy show is bringing all the news and crazy commentary to Wellington’s Michael Fowler Centre. Host Jeremy Corbett, and team captains Paul Ego and Dai Henwood head up the hilarity. Joining them are old favourites Ben Hurley, Justine Smith, Hayley Sproull, and Josh Thomson. Watch as they examine the stories of the week and milk them for laughs.
Click here to book your tickets
Mamma Mia, St James Theatre, 14-31 August 2025
Gimme, gimme, gimme a night of song and dance. Mamma Mia is the ultimate feel-good show. The stage musical has been wowing audiences since 1999. It’s due to wow Wellington audiences in 2025. Based on the songs of Swedish super-group ABBA, it features non-stop laughs and explosive dance numbers.
Wellington Phoenix 2024/2025 A-League Season, 2 November 2024 – 20 April 2025
Football fans are spoilt for choice this season. Wellington’s own Phoenix FC are set for a huge number of fixtures in the city across summer and autumn. Both the men’s and women’s teams will ignite the 2024/25 A-League season. There are 22 top-tier matches in Te Whanganui a Tara. The Phoenix women play 11 games at Porirua Park while the Phoenix men play 11 games at Sky Stadium.
The matches are spread out between November 2024 and April 2025. Here’s your chance to experience the magic of the Phoenix live. Support local football and share the passion and energy of match day in Wellington.
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