News reported over recent weeks has injected a positive feel to the Christchurch property market. A number of factors have led to this at a time when the banks have lowered interest rates encouraging first home buyers and investors back into the market. Add to this impact the red zone property owners who have a looming deadline to settle with the government in 2013.
Quotable value reported this week that Christchurch growth in property prices is only slightly less than that of Auckland with reported growth of 5.4% over last year. The Christchurch property market is now 0.8% higher than it was at its peak in 2007. Property investors and landlords find themselves wondering whether to sit tight with the rental increases they have enjoyed recently or whether to consider liquidating the asset to enjoy the capital growth.
While a wave of new homes is getting started in and around Christchurch it has been reported that a gap is forming in the market for people looking to purchase property with a smaller floor area and section which is easier for the owner to take care of. Most new developments are designed for families with large floor area requirements to meet with development covenant requirements. This adds pressure to existing properties available for rent and sale in the market.
Impact to property rentals has levelled off coming into winter which is typical during the months May to September, we predict that pressure for good properties to rent will build again come Spring 2012.
Melissa Benge, First Avenue Property