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Canterbury real estate report
Jo-ann Hodgson reports on the steady rise of property prices in Canterbury and increased affordability at the lower end of the property market
Although the property market in Canterbury has shown signs of settling down, in the early part of this year, following the overheated market of the last few years, property prices are continuing to rise at a healthy yet more realistic rate. Underpinned by emigrants and people moving to Christchurch, Canterbury's capital, from other urban centres in New Zealand, property prices in Canterbury rose from NZ$300,000 to NZ$310,000 in April, according to figures published by the Real Estate Institute.
Enticed by the lure of a large pool of jobs, with employment split between primary production and the farm service sector, maufacturing, technology, health and education services, and the space and lifestyle opportunities afforded by the country, property in Canterbury remains an attractive proposition to many home-buyers. Many commuter suburbs around Christchurch have become increasingly popular due to the healthy job market, good standard of education and lifestyle which allows residents to travel across town in 15 minutes. Loburn, Ohoka, Rolleston, Darfield, West Melton and Tai Tapu are all popular commuter communities.
While properties in Canterbury continue to rise, increases are nowhere near those experienced in 2005 when property values rose 20.2 per cent in 12 months. Brent Mason, President of the Independent Property Manager's association and who manages over 100 properties in Christchurch recently told Landlords that house prices are becoming more realistic in Canterbury. "There seems to be a lot more resistance from people to paying what I would call ridiculous prices, wheras up until six months ago people would pay almost anything for a property, regardless of what condition or where it was in," he said. Quotable Value's (QV) April statistics report healthy growth of 11.8 per cent in Christchurch City over the past year. However, the average sale price for the city fell slightly from NZ$352,755 to NZ$348,892. "This could indicate increased activity in the lower price brackets compared to higher price brackets," said Mark Dow of QV Valuations in the report. "This was reinforced by QV's price range statistics, which shows the highest proportion of sales to be within the $200,000-$300,000 bracket." He continued: "The provincial parts of Canterbury and Westland demonstrate mixed trends with Hurunui, Banks Peninsula, Ashburton, MacKenzie, Waimate, Westland and Grey all recording lower annual increases than the previous month. Buller, Waimakariri, Selwyn and Timaru recorded modest improvements. "The current feeling is that the market is in a holding pattern. The latest interest rate increases are starting to be felt. "We would not be surprised if there was a slowing of the market, especially in the lower price brackets where mortgage affordability is a key consideration."
On a national level, house prices in Christchurch and Canterbury remain among New Zealand's more reasonable markets. QV's April statistics showed that while the national average sale prices for New Zealand properties was NZ$366,032, the average in Christchurch fell far short of this at NZ$348,892 and the Real Estate Institute reported that average prices in Canterbury as a whole were even lower at $310,000, proving that now may be a good time for first-time buyers.
For further information:
Real Estate Institute
Quotable Value
Lowdown on key Canterbury neighbourhoods
Ashburton
A town and district, Ashburton is the third-largest centre in
Canterbury after Christchurch and Timaru. Located on State Highway 1, it is frequently referred to as Mid-Canterbury – the name of the district's sports teams.
Banks Peninsula
Partly surrounded by the Pacific Ocean, this peninsula has a rich Maori history and forms the most prominent volcanic feature to be found on the South Island.
Darfield
On state Highway 73, Darfield is located 45 kilometres outside Christchurch and is the main town between Christchurch and the West Coast.
Loburn
A peaceful rural area on the Rangiora to Oxford road. Near the junction of the Ashley and Okuku river, Loburn is in 'lifestyle block country'. North Loburn features the towering, craggy peaks of Mounts Grey, Karetu and Thomas.
Mackensie
A region of vast landscape punctuated by glacial lakes and a man-made canal system which delivers hydro-generated energy to cities and towns across New Zealand.
Ohoka
One of the closest rural areas to Christchurch, Ohoka is a 15 minute drive from the city. The area sits on extensive plains between the Ashley and Waimakariri rivers and is fast-developing as specialist farms and lifestyle blocks.
Rolleston
A satellite town located next to State Highway 1, Rolleston lies on the Canterbury plains and is quickly expanding with a projected population of 14,000 in five years time. The town's slogan is "The Town of the Future".
Selwyn
A rural area in located in central Canterbury, Selwyn is named after the Selwyn river. Much of the district's economy is based around farming. The district is home to the town of Lincoln, a university town with a number of Crown Research Institutes.
Timaru
A major port city
in southern Canterbury, Timaru is home to Caroline Beach, a popular recreational area close to the CBD. Local volcanic rock is used for the construction of 'bluestone' buildings in the area.
Waimakariri
Twenty minutes north of Christchurch, this district lies on the Waimakariri river which flows through the ranges of the Southern Alps. Many tourists are attracted to this area by its vineyards among other things.
Waimate
Forty-five kilometres south of Timaru in South Canterbury, Waimate has the fewest Maori people per district in New Zealand and is well-known for its population of Wallabies.
West Melton
This area has the largest population in the Selwyn District and is associated with horse racing.
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