Liz McDonald at The Press reports:
House values are booming in Christchurch’s beach suburbs as buyers increasingly opt for coastal homes.
In a growing trend that began late last year, real estate values along the New Brighton coast have been rising faster than anywhere else in the city.
According to the latest report from Quotable Value, the Christchurch suburb with the fastest-rising values in the past year was South New Brighton (8 per cent), followed by North New Brighton (7.3 per cent) and then Central New Brighton (7 per cent).
While I wouldn’t go as far as to say the seaside suburbs are ‘booming’, the market out east for entry-level homes has been very active. This is mainly attributable to a variety of different factors: historically low interest rates, recent KiwiSaver incentives, and significant capital investment in the area. New Brighton and its neighbouring suburbs have been identified by first-home buyers as providing good value for money and a family-friendly lifestyle.
Quotable Value figures showed the city’s cheaper suburbs had also seen strong price growth as first home buyers got into the market.
Other areas with good growth in values were the suburbs of Wainoni (7 per cent), Southshore (5.9 per cent), Aranui (5.6 per cent), Lyttelton (4.6 per cent), and Phillipstown (4.4 per cent).
It’s also worth noting that these suburbs took a reasonable hit post-quake, with the rebuild taking a bit longer to take hold in the years that have followed. In addition to the factors outlined above, I suggest that this recent uptick in median prices is at least partly attributable to this delayed recovery.
Anecdotally, the ‘as is’ market appears to be one of fits and starts, with buyers enjoying a greater selection of properties as insurance companies ramp up their cash settlements before the end of the financial year. However, where buyers perceive an offering as particularly rare, premium results are often achieved. Earlier this month, an ‘as is’ property in Somerfield had over 50 groups inspect and 10 bidders attend the auction, resulting in a premium price for our sellers.
All in all, I believe this stabilised Christchurch property market provides great opportunities for both buyers and sellers alike. Proceed with confidence!