North Canterbury property in demand

High demand for subdivision space for new homes in Christchurch is prompting buyers to look further afield.

Thursday, February 21st 2008, 12:00AM

by The Landlord

Historic towns such as Kaiapoi and Rangiora are benefiting from what one market analyst calls a “spillover demand”.

Phillip Wilkinson, Simes registered valuer, says, “There is a lack of sections in Christchurch, so subdivisions in Kaiapoi and Rangiora are showing substantial building activity.”

QV Valuations’ Mark Dow says property prices in any large city tend to be higher than those in outlying areas, and as demand heats up for the city, the outlying areas get the overflow from those who want to spend less on buying land and developing a home.

“Our research shows section sales in the North Canterbury District are at a median of around $150,000. The median house sale price is around $325,000,” says Wilkinson.

“Land in Christchurch has become very expensive – there’s more demand than supply,” says Dow, although he adds this has swung back a bit a present. “There isn’t quite the demand for vacant residential property as there was recently.”

Dow says fringe areas like Rolleston, Lincoln and those in the Waimakarere district have always experienced spillover demand, but that they are popular locations in their own right as well. “They have had phenomenal growth in terms of building activity.”

Paul Biddington, manager of Simes property management services in Kaiapoi, doesn’t expect the demand in his area to end in the near future. “Kaiapoi property is in very short supply, with no new subdivisions coming on stream for some time yet.”

However, Dow says the property market is going through a “very quiet” patch at the moment and when the market turns, fringe areas “tend to be the first to drop off” as the city becomes more affordable again.

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