Tag Archives: Christchurch Housing Market updates

Christchurch Real Estate, new zealand real estate

New Zealand Housing Market Updates: Changing Demand and Supply Dynamics

person By Hadar alarm 31st Oct, 2022
New Zealand Housing Market Updates

Statistics NZ provides the estimate of decrease in natural demand for housing in New Zealand. The increase of 21,200 was witnessed in June 2021. However, this figure has dropped to 12,700 in June 2022. Moreover, this is much below than the average demand 94,800 a year, witnessed from 2018 to 2020.

Generally, it takes two years for dwellings to take the shape from the moment of their consent. It is an indicator that the supply takes more time to adjust to the demand. However, the unpredicted pandemic restrictions suddenly halted the immigration, which led the supply to remain stable but caused the demand to decrease substantially, hitting the New Zealand housing market hard.

Besides the pandemic and its implications on immigration, the natural population growth also slowed down, causing the dwellings to remain unutilized. Interest.co.nz estimated that the housing demand rose to approximately 10,000 in the year 2020. The current supply would have eliminated the housing shortage that was seen due to the increasing number of immigrants and growing population.

New Zealand housing market updates show that the current situation of exceeded housing supply over the demand is putting pressure on residential property investors in a substantial way. The affects will be apparent in form of decreasing property prices, lowering rental values and eventually decreased capital values.

New Zealand housing market updates

The major housing surplus in 2022 can be seen in Auckland, Canterbury, Otago and Wellington. The data for Auckland indicates an approximate population loss of 19000 and the increase in supply of dwellings by 35,386. In Wellington, the housing supply was 2655 against the demand of 664, causing the surplus to be 1991. Otago witnesses the decrease in requirement. When the supply is 2179, the requirement as well decreases with decrease in population by 350 and the demand of new houses by 145, causing the surplus to be 2324.

The data provided for the year 2022 shows, the surplus in Auckland by 17,860 as the estimated new dwellings are 14,780 while the requirement of new housing decreased by 3080. Otago sees the surplus in housing by 2248. The requirement, as well, is increased but marginally by 580, still keeping the higher number of dwellings unutilized. Similarly, there was marginal increase by 1928 in demand in Canterbury against the supply of 5771, causing the surplus of 3843.

 

 

 

 

Christchurch Real Estate

Christchurch Housing Market Updates [May 2022]

person By Hadar alarm 1st Jun, 2022
Christchurch Housing Market updates

As the New Zealand housing market enters its price correction mode, tight lending conditions and high median values spell a slow market for most major centers. However, Christchurch continues to thwart the trends and rake in profits for brokers, sellers, and buyers alike. The Christchurch housing market continues to depict high profits for sales and resales.

Christchurch housing market still clocking average $800k home value

Home values in Christchurch have increased from $510K in January to $800K in the past 2 years. By April, it has reached $801,614. By tallying from January 2020 to now, Christchurch has witnessed an increment of 56% in home values. Properties are selling faster despite high mortgage interest and reduced credit from financial institutions.

Christchurch housing market updates that the center still looks to outperform other major markets across the country, unless conditions grow even tighter. Christchurch’s market dynamic suggests a lack of panic sellers who know exactly when the city’s prices shall plateau with the rest of the country.

This analogy is further strengthened by reports that nationwide median homeownership is at 7.5 years, in the first quarter of the year. Those who have missed selling at the crest of the avg. home values, may now also face low rentals. However, selling in this market can also fetch them a lump sum profit.

Even a home that has not witnessed a sale in a decade is likely to rake in the profits for the owners. Christchurch saw no drop in resale profits between the last quarters. The median gain for the city was $319,855. It needs to be noted, however, that the lack of panic sellers/buyers and unrelated constructional delays are also behind the plummeting prices.

Christchurch housing market updates construction delays

Christchurch’s incumbent challenges within the housing market lie in its Eastern frame, with construction. Private corps with big tenders for Christchurch residential homes bordering Manchester, Worcester, and Hereford streets and Huanui Ln, are being delayed by the volatile construction and lending sectors.

This has in turn stymied the development of some 102 new homes spread across six storeyed buildings. Further Christchurch housing market updates suggest that the city’s council now sets sight on tighter financing, restrictions, and repopulation across the market, to accelerate a market cool off. Increasing supply chain issues are creating a disbalance where properties are getting completed and handed over to the owners.

Christchurch housing market predictions for FY2022-23 Q1 closing

Currently, about 18 suburbs in Christchurch are already calling for investments above $1 million. Christchurch’s costliest suburb, Fendalton, still has a median asking price of $1.56 million. Expert-speak suggests that prices are likely to hit the median $1 million mark around 2023-24.

Christchurch is well-poised to compete against esetablished main centers across the country too- because the same experts believe a 5% hike nationally would spell a 10%-15%. In a landscape where even the experts believe that Christchurch is undervalued in every way, you may want to re-evaluate whether it is smarter to sell off or hold your investment for the moment.

Christchurch Real Estate, new zealand real estate

Falling Prices Help Buyers Retake Control of the Christchurch housing market

person By Hadar alarm 28th Apr, 2022
Christchurch housing market

Buyers are seeking control of the housing market in Christchurch for the first time in two years, as you read this. The transition in the Christchurch housing market comes in the wake of housing prices dropping the sharpest for the first time in a decade across New Zealand. National home valuation stats indicate that the real estate main centres are ‘bearing the brunt of rising interest rates and tightening bank credit’.

But, is it time to cash in on the market yet? Or should you wait to see if the market goes further bearish? Here is some more news from the NZ and Christchurch market that may help you decide.

New Zealand housing market price slash

The New Zealand housing market witnessed a massive jump in housing prices at the start of the first phase of COVID-19 lockdowns that came into action 2 years back. However, the time may be up for the seller’s market thanks to a global financial crisis.

Across NZ, the average home price has decreased in value by 0.6%, according to national valuation institutions. The present national average home valuation sits at $1,046,636. Auckland house prices have witnessed a 20% drop since their peak in November.

The February 2022 prices are at $1.54mn as compared to November 2021 at $1.25mn. While this may appear as a nominal decrement to some, the decrease is still welcome news after the consistent price hikes.

Buyers are more confident about ignoring FOMO and adopting a comparative, price-aware stance towards investments. Which, according to Christchurch housing market predictions, can indicate further price cuts- but more on that below.

Notable economists project a further 10% average drop in NZ prices further down the line this year. But, word to the wise would be to hold off on investing immediately, as the median prices rose 31% till July 2021, and are still a long way from returning to their value from 2 years ago.

Key indicators for the Christchurch housing market

The price drop across New Zealand’s main centres can cumulatively give us some indicators about the fate of the Christchurch market. The most desirable cities for housing assets used to cost several times the average annual income.

In a positive turn of events the hike in bank interest rates, the cost of living, and the tougher lending rules have dwindled the demand for housing, leading to the price softening. Where FOMO used to drive buyers earlier, now they are hesitant to invest beyond their means.

According to Christchurch housing market predictions, the market is still yet to suffer the same fate of other NZ main centers. But, the fear of paying too much’ is driving consumer sentiment- so much so that only 16% of New Zealanders considered February 2022 prices suitable for investment, after they dropped 25% below the October 2021 prices.

Whereas, a whopping 58% reacted adversely to investing in the market right away indicating further price drop expectations. The price cool-off is being further assured by state government reforms that are pressing down on banks.

Christchurch housing market updates for prospective investors

Tightened mortgage rules aim to reduce ‘discretionary spending, but also aim to phase out mortgage interest as a tax-deductible cost. Higher inflation rates are a justifiable cause for banks to hike mortgage interest rates, thereby disenchanting new buyers and existing owners with high mortgage payments.

This may serve as a good incentive if you wish to invest in the Christchurch housing market. Buyers who had been planning to sell considering the price correction to be temporary, are now a cautionary tale for new buyers.

First-time buyers are still hesitant to invest in Christchurch’s premium suburbs, such as Fendalton, whose median value currently hails at $1.62 million, locations like Scarborough Hill ($1.58m), Richmond Hiill ($1.36m), and Merivale ($1.38m), are still out of their investment range.

However, lucrative locations like Wainoni ($490,000) and Kainga ($491,000), Linwood ($481,000), Aranui ($441,800), and Phillipstown ($428,200) are still out of bounds. The high cost of living, heavy mortgage payments and inability to fetch a profitable or breakeven market price are definite financial incentives to detract investors.

Should you invest in the Christchurch market already?

Taking these factors into account it is safe to assert the Christchurch housing market predictions that there are several cogent reasons to hold off from investing, unless you find a particularly lucrative deal in a goood location. The months ahead will likely see further price compression and more accessible price tags all around, in the Christchurch suburbs.

Christchurch Real Estate

RBNZ Hikes OCR: Christchurch housing market prices under check

person By Hadar alarm 18th Dec, 2021
Christchurch housing market prices

The last quarter witnessed Christchurch housing market prices soar to their highest in three months. A growth of 8.8% in three months, helped the metro depict the biggest growth of all the seven major housing markets in NZ. While the housing prices in Christchurch are the lowest among these metros. The incumbent hike in the Official Cash Rate (OCR) by the Reserve Bank of New Zealand (RBNZ) is expected to further check the Christchurch housing prices- According to Christchurch housing market predictions from experts.

New demand to combat OCR hikes
The RBNZ introduced a 0.75% hike in the OCR, as of the final policy meeting of the calendar year. Experts inferred an increase in rates by 25 basis points; a survey concluded that investors had, however, expected a hike along the lines of 50 basis points. Press statements from the RBNZ report that this was a highly likely scenario; although, the RBNZ meeting finally signed off on 25 basis points as the best option at hand.

The Government however looked to soften the blow of the OCR hike by reopening its borders in 2023. This spells new consumers and increased housing demand even as NZ looks to recover from a swap rate drop of 20 basis points in two years. Christchurch housing market news indicates strong a demand for quality housing in Christchurch suburbs for buyers with debt or on a budget.

This demand is also expected to help stave off the pressure from domestic and foreign (especially South Korea and Singapore) central banks curbing stimulus options to consumers. All of this spells a positive final quarter of the calendar year for the dark horse of NZ’s major metros.

Also read:

Christchurch Housing Market Reports Quarterly Growth in Average Home Prices

What does this spell for the Christchurch housing market?Christchurch housing market updates suggest a hike of up to $58,000 in the last quarter. While the initial stimulus may have flared up the house prices, the present OCR changes can pave the way for housing demand. The resultant property market boom works hand-in-hand with inflation hitting 4.9% and unemployment reaching its lowest (3.4%) in a decade.

By mid-2022, the OCR is expected to reach a 2% hike. Forecasts from the RBNZ itself indicate a rise up to 2.5% in the OCR by 2023, and even higher by December 2024. Even as interest rates are expected to increase, the employment and investment opportunities spell a greener pasture for both sellers and buyers of Christchurch, in the coming days.

Christchurch Real Estate

Christchurch Housing Market Reports Quarterly Growth in Average Home Prices

person By Hadar alarm 12th Nov, 2021
Christchurch Housing Market 

New Zealand’s average home property values have jumped by 5% to $1021 million in the past three months. The slow, but steady growth rate accounts for an increment of $45,000 in the average housing property value; and, thus is a bearer of good tidings in a Christchurch housing market deprived by the lockdowns and new governmental LVR policies for banks.

How is the Christchurch housing market contributing to average NZ home value growth?

Marlborough exhibited the sharpest decline in the last couple of quarters (from 8.8% to 1.2%); growth in Southland also dropped from 4.2 to 3.6%. But, Otago, Canterbury, Nelson, Auckland, and Northland have all registered, at the very least, a percentage of growth between the last two quarters. At a time when growth has slowed in 11 out of 16 of NZ’s regions, Auckland is still going strong.

Christchurch’s October average house prices are at $1.451m, which is $74,000 more than the previous quarter. Christchurch’s growth has helped bolster the whole Wellington region’s average housing price around the $1 million mark. Things are also looking up for the Bay of Plenty, Tasman, and Waikato as they are on the brink of joining the ‘$1 million club’ with average housing prices at $987,000, $942,000, and $914,000, respectively.

But Christchurch housing market updates suggest that prices here have steadily climbed in the last two years. So much so, that some first-time buyers are finding it difficult to catch up to the momentum of the market. Even that challenge might be a thing of the past, as explained below.

The Christchurch housing market average property value is the lowest of all the seven centers. Its jump to 8.8% of growth takes its property value average to $718,000. Tauranga has seen s growth of 6.5% to $1.138m; Queenstown Lakes’ average house prices are up by 6.4% to $1.624m; and, Hamilton reports a 4.7% increase to $866,000. Wellington itself is up by 3.6% to $1.231m.

New zoning reforms to further boost Christchurch housing market housing crisis

Notably, this increment is still lesser than the 6.1% increase that was documented in the previous three-month period, according to statistical reports by leading realty market analytics agencies. However, given the slowdown in buyer activities in these months, Christchurch housing market predictions are indicative of positive factors for a post-pandemic lockdown market; such as multi-housing prospects on the same lot/unit are being discussed as a means to ease burdens. This should also greatly multiply the number of listings usually available in the market.

This would definitely cut the average housing price by a large margin by creating more home options in quality locations.  The government is further striving to mitigate the single-family zoning policy in NZ’s five biggest metros. Cities such as Christchurch, Wellington, and Auckland are soon going to permit owners to build up to three housing units, to a maximum height of three stories. This should help curb the problems with affordable housing. The legislation has been enough to inspire housing advocates in British Columbia.

 

Christchurch Real Estate, new zealand real estate

Christchurch Housing Market – Key Updates You Should Know About

person By Hadar alarm 28th Jul, 2021
Christchurch Housing Market

Christchurch has always been touted as one of the most affordable housing markets in NZ. But, that is definitely changing, as the region has tasted its fair share of million-dollar-plus residential asset sales in this financial year.  Like everywhere else in NZ, the median house price in the Christchurch housing market has jumped reaching a median price of $541,000.

The high demand and low supply of premium-grade home property, coupled with low interest rates also, has resulted in no less than a hefty 20% since the last year. Experts and agents have noted alike, that this marks Christchurch’s entry into the multi-million home sales club, in contrast to its demand for producing affordable, premium-class homes.

Christchurch housing market updates

For long, Christchurch invited buyers and investors with open arms till now with its affordable prices. However, now the quality housing stock and bottlenecked supply have helped the housing market step up and maintain par with the rest of the regions. Christchurch housing market predictions by bonafide brokerage agencies also refer to another contributing factor to the jacked-up median prices- the exodus of buyers from regions like Wellington, Auckland, and even those returning from overseas.

Christchurch housing market updates

Nowadays, average three-bedroom, single garage cross leases in south Christchurch are going for $100,000 above their 2019 value. Make no mistake, though, for outer Christchurch still presents us with affordable land and house packages for prices closer to the median range. But, that median as mentioned above has well-appreciated past its 2019-2020 value by 20-25%!

Christchurch Housing Market climbs the charts

The Christchurch residential property market has entered the multi-million dollar club with pomp. While quality housing is still available in localities such as Halswell and Hoon Hay- if you are willing to shell out to the tune of the new median price- suburbs such as Fendalton and the Clearwater golf resort area are being sold at $6 million. School districts such as Strowan, Cashmere, and Somerfield, are also exhibiting massive price growth, with buyers pouring interest into $4m homes. The Christchurch housing market updates from brokerage agencies point towards a continuing demand for median-priced housing from both first-time homebuyers and investors.

Christchurch housing market predictions

Given the demand-supply disproportion, even a three-bedroom, one-bathroom weatherboard home with a backyard in north-Christchurch’s Belfast, is selling for a $200,0000 increment over its usual RV. Quality four-bedroom, villa homes with garden space in central Christchurch are also reflecting this $200,000 hike over the erstwhile RV.  The central city obviously costs you more for quality housing, but median-priced houses are available there as well if you are looking at the right places.

As per Christchurch housing market predictions, buyer competitiveness is at an all-time high, if not at the same level as regions, such as Auckland. But, even though the region has broken into the upper-echelon, with million-dollar sales, we can still fetch you a premium-grade home at a price tag closer to the median price, in Christchurch.