Demand for Homes in Christchurch Reach Record High

Property Christchurch Record High

Demand for Homes in Christchurch Reach Record High

Although it’s been two years since the first devastating earthquake hit Christchurch (and let’s hope we’ve seen the last!), the knock-on effects of the quake continue to be felt across the city. Nowhere is this more obvious than in the real estate market, where a serious property shortage combined with high demand is pushing prices up.

The Real Estate institute reported this week that the median house price for the Christchurch area is now $371,600, up 9.3% in the last year. A lack of available housing, delays in the repair of houses in damaged zones, a strict finance market, and strong bidding are all contributing to the growing market, which is set to continue for the foreseeable future.

Demand Highest in TC1-2 Areas

The Department of Building and Housing has divided land in the green zone into 3 Technical Categories – TC1, TC2 and TC3. These categorise land by how it is expected to perform in possible future earthquakes, and also describe the types of foundations needed to support buildings in each region.

Houses in TC1 are unlikely to see any liquefaction damage if another earthquake occurs, and only require standard foundations. TC2 properties could receive some damage and require some foundation reinforcement. TC3 buildings require specific engineered foundations to protect against earthquake damage.

Movement out of the Christchurch area has slowed in recent months, with many families still keen to stick around in their beloved city. Homes in TC3 areas that were badly affected by the quake are still in need of repair, and many families are looking to move on to more stable homes.

Not surprisingly, the backlog of some 30,000 TC3 homes in need of repair is limiting supply of new homes on the market. Houses in the less quake-affected areas are in the highest demand, but a lack of listings and general shortage of homes are definitely keeping the market strong.

Rentals in Christchurch also in High Demand

The rental market is also highly competitive, with figures from the Trade Me Property team revealing demand has risen in the city by 47% since last year, while supply is down 34% and rental prices have risen 26%.

Because of this, many families who were in the rental market are choosing to buy a home instead.
Great Market for Vendors

If you’re looking to sell in Christchurch, now is a great time. If your home has been repaired or has escaped damage from the quakes, you’ll attract a great price.

We’re seeing more buyers through open homes, and many properties are attracting multiple bids. Many buyers want a home as soon as possible, so they’re looking to settle quickly. Homes are selling, on average, after 33 days.

We’re seeing most activity in the market in the $300-400,000 price range, and there’s not much below that these days. Until more houses become available, the high demand for houses in Christchurch will continue, with vendors securing great prices for the properties.

How Can We Help?

At Topp Realtors, we’re been selling and managing homes in Christchurch since 1972. Our experienced team can help you get the best price for your Christchurch property. Contact us on 359 5595 or via email now for a free appraisal.

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