News

Christchurch Market Update

By Liam O'Boyle

The Christchurch market place for residential properties, both sales and rental one year post earthquake is clearly divided into 2 markets. 

The Central City, Eastern and Hill suburbs, with low enquiry making sales and letting difficult to obtain.

The contrast in the North and Western suburbs plus the outer districts is opposite, lack of properties available for sale and rent putting upward pressure on house prices and rents. 

It has been difficult to obtain a clear trend and population movements with an initial exodus of approximately 26,000 according to election role stats.

The red zone property owners are now receiving the Crown offer to purchase their properties that is now 6,000 people who will be making housing decisions over the next 9 months, building, buying, renting or moving outside Christchurch.

The sales market in the least affected areas are experiencing strong inquiry from first home buyers, people transferring to Christchurch and Red Zone buyers, creating multi offers and excellent auction clearances.

In the rental market available properties are below pre-earthquake levels again, with strong enquiry on homes in the least affected areas with rents firming.   The opposite is happening in the eastern suburbs with low enquiry and difficulty attracting tenants.

Insurance, or inability to obtain cover is a major issue.  Insurance companies are not taking on new business exposure in Christchurch; the only cover obtainable is through assignment of a policy or renewal.  This is okay for existing properties where the income owner has a good credit rating, but for new builds and tenants seeking contents insurance the current situation makes it extremely difficult to obtain cover. 

What has become very apparent is the Christchurch rebuild will take many years but the high amount of resources input from insurance, local bodies, private sector and Government will see a sustained strong Canterbury economy.

Up to Date

Latest News

  • Insulation Regulation Change Looms Large for Landlords

    The deadline of July 1, 2019 is looming large for New Zealand landlords. After this date those owning rental properties that don’t comply with the new insulation regulations detailed in the Residential Tenancies Amendment Act 2016 can expect fines of up to $4,000. Three months out from the deadline, it’s … Read more

    Read Full Post

  • The Importance of Online Reviews — The Good and Not So Good

    A high profile property management company was recently found to be responsible for a series of fake Facebook and Google reviews. The dishonest act got us thinking about the importance of online reviews and the trust signals they send out. Reviews provide valuable information … Read more

    Read Full Post