Demand for property remains consistent to strong in most areas of Canterbury with heightened interest in the north/west of the city and North Canterbury. The prerequisite for purchasers to transact generally appears to be safety and a perception of strong land. Here at the Parklands office we successfully negotiated just over $5m dollars worth of sales for the month of May and it is interesting to note that 74% of these sales were in the eastern suburbs – a real testimony of the resolute belief of those investing in the east!
So where to now for Parklands?
Many of you will be aware that CERA has decided to stand by their decision to green-zone the parts of Parklands that were particularly hard hit by recent earthquakes. While not everybody’s desired result it, overall it does give a positive message to the buying public. Frankly, now the location and specific streets will not be stigmatised by a “red” zone nearby. Once insurance companies undertake repairs and rebuild homes in the area, this will certainly be confidence booster. Understandably some people will cash out and move while others will wait to have their properties remediated. I believe the future for the area looks positive and the lifestyle Mecca that it is will continue to win the hearts of many over.
Yes we are selling TC3 Properties
With confidence returning to the buying public, coupled with the support and belief of most lending institutes and insurers, we are transacting a good cross section of property types rated under the new post earthquake zoning categories. In fact, a recent internal survey highlighted that 34% of our sales since January were of TC3 zoning which confirms that there is a way forward and that we have the appropriate skills and procedures in order that both sellers and buyers can proceed with complete peace of mind.
Quote of the week:
“Opportunity is missed by most people because it is dressed in overalls and looks like work.”
– Thomas Edison
Last week while handing keys over to a client (who incidentally is renting the property she purchased in St Albans/Merivale until settlement due to the requirements of the insurer because of TC3 land zoning) I coincidentally met a geotechnical engineer from Aurecon on site. After a reasonably in-depth and informative conversation I was able to glean some very helpful information.
While he mentioned that residential work is currently only a very small portion of their workload and individuals requiring their services can expect a reasonable wait he made a couple of relevant comments that I thought would be welcome news for those blighted with the TC3 label (my home included):
- Unofficially he mentioned that their company has a maximum charge for a residential property geotechnical investigation/report of $2,000.
- After completing their inspection and subsequent report, if the land is deemed to be of TC2 rating/quality it is his opinion that it is possible to have the category changed for your land with CERA.
- If able to have your property re-categorised he recommended that you do so, as moving forward he believes that it is likely insurers and lenders will mostly likely have more stringent requirements for TC3 zoned property.
I guess one of the advantages for a TC3 home owner is that thorough “site specific” investigation is going to be required for their properties one way or another. For example, if their home is to be rebuilt, their insurance/building company will be required to have a full geotechnical report completed in order to design appropriate foundations. The bottom line in a property transaction is that both the home owner and the purchaser will have comprehensive site-specific information which would not necessarily be the case had it been zoned under one of the other categories – worth thinking about.
I trust February treats you well (and your Valentine) and here’s to good progress with the rebuild.
CORRECTION: To clarify, the $2,000 is for the drilling rig only. The cost for a geotech report from Aurecon is determined on a case-by-case basis. You can contact Aurecon on 03 366 0821.
Further, we have since found that the findings of a site-specific geotech report will be lodged on the city council’s property file and the LIM, but not result in the property being recategorised. Any future building/property requirements will be based on those findings.
While Monday greeted us with a rather cool start, bringing Christchurch to another halt for the day, the hot news is that as per the latest Harcourts MarketWatch report, Christchurch sales for July are up by a massive 33 per cent compared to July 2010. Also with listing numbers down, there is likely to be pressure on the lower levels of available property (as quoted below in the report), something that will only heighten as the red zone homeowners receive their formal offers from the Crown later this month. The report states:
Throughout July Christchurch outperformed pre-earthquake statistics. The 33 per cent increase in written sales is being attributed to those with damaged property looking to secure their future. This trend is expected to continue and put significant pressure on housing stock and prices.
So for those of you in the green zone who are selling or looking to sell, if your home is realistically priced you can expect to see some positive action in the short term – I guess a positive flipside to the devastation that the earthquakes have brought to our local community.
Let’s all take heart and embrace the opportunities that present themselves.
Take care, keep warm, and here’s to continued strong enquiry!