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Funding issues hit St James apartments project in Auckland
http://www.nzherald.co.nz/property/news/article.cfm?c_id=8&objectid=11748861
Funding issues have hit yet another big Auckland apartment project, the inner-city's planned St James Suites beside the historic Queen St theatre.
Steve Bielby, co-developer of the proposed 39-level 309-unit project planned for 302 Queen St, said local buyers who had paid 10 per cent deposits were now being asked for 20 per cent and foreign buyers who had put down 20 per cent were now being asked for 30 per cent.
"If you're a foreign buyer, you were already at 20 per cent and now we have increased that to 30 per cent. Locals had been 10 per cent but are now 20 per cent. It's easy to walk away from a 10 per cent deposit if the market drops 20 per cent. It's a settlement risk - they're worried about people not settling," Bielby said.
Apartment prices are also being put up, buyers have been told of the project beside the theatre where Auckland Council has committed to contribute $15 million to the restoration.
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