In the latest edition of Harcourts MarketWatch it is interesting to note that with the exception of the Wellington region, all other regions benefited from and increase in written sales for the month of January. While January can be a fickle month (obviously Wellingtonians stay on holiday longer) there is unquestionably a positive trend emerging indicating higher levels of confidence throughout the country.
Harcourts CEO Hadyn Duncan states:
With a severe shortage of homes already in the main centres and no significant lift in new building consents, the competition for existing homes will continue to drive prices up further. Our property investor clients are also going to see continued strength in rental prices with the same issues prevailing.
The writing is clearly on the wall and confidence is returning to the overall national marketplace.
Signs of high demand for rental property…
As we know here is Christchurch demand for rental property has been unprecedented and at levels higher than has been seen for some years. This includes feedback of up to 40 people queuing for the same property, rising rents and the lack of supply in some high demand locations.
Personally, I have received a number of enquiries from investor clients who are beginning to show interest in extending their property portfolios. They are seeing the opportunities that Canterbury provides, especially so now with the rebuild beginning to regain momentum. It is my professional opinion that, bar any “major events” Christchurch is poised to begin a huge growth phase, with every indicator pointing to some strong capital growth over the coming years. Certainly worth thinking about and now is the time to take action before we see a hike in property values. The Property Investors’ Association website also makes for some interesting reading.