Canterbury Two Years On
How our world has changed since September 4 2010, and we note our observations.
Sales are currently strong with demand in all areas and ranges. The land classification in Christchurch has some issues for sales especially with dwellings on TC3 classified land. Contrary to some reports these properties are selling but each transaction is very much case by case, with many variables, location, purchaser, level of equity and institution, both financing and insurance.
Generally insurance availability is gradually improving. Existing properties the transfer of claim entitlements from vendors to purchasers in general has been occurring, but with changes in relation to a total loss situation where some companies are not transferring the replacement entitlement, only indemnity value. In reality this would affect very few properties. In the majority of transactions the purchaser are obtaining cover from the existing insurance company, this again is very much a case by case basis.
Insurance cover for new housing is gradually freeing up also, to date has been the builders risk rolled over for a further 12 months cover.
Prices have firmed more so in the least affected areas the Selwyn and Waimakariri Districts plus North to South West of Christchurch.
The supply of residential property is again becoming very tight, a combination of the rebuild ramping up coupled with house repairs. The repair of Housing New Zealand and Christchurch City Council accommodation is underway, the faster this happens will take some pressure off the social housing requirements.
Rents have had a significant increase especially in the middle range of reasonable standard 3 – 4 bedroom homes in more preferred areas.
Many of the construction firms will have to make provision for workers accommodation if they wish their business to operate at full capacity.