Even houses that may require major repairs are selling well in Christchurch, the Real Estate Institute says.
Sales of properties rated in technical category three (TC3), meaning further investigation is required to determine whether major repairs are needed, are beating sales expectations, an analysis of sales shows.
Between February 2012 and September 2012 the number of properties changing hands rose from 514 sales in February to 629 in May and then dropped to 417 in September.
REINZ regional director Tony McPherson said the slump was because there weren’t enough houses available for sale.
“That is being reflected in the prices being paid which are returning in some instances above the pre-2008 peak values.”
The median house price for Christchurch City properties was $345,000 in September 2012 compared with a median of $320,000 in September 2007.
It is estimated that 20.3 per cent of properties in Christchurch have been designated TC3. REINZ analysis shows that of the sales made in the eight months to the end of September, 11.4% were of TC3 properties.
“Obviously a significant number of home buyers understand what TC3 land classification is about, thus giving them confidence to make purchasing decisions on homes on TC3 land. We also see evidence of the old adage, ‘good properties in good locations attract strong interest,’ and this is no different with homes on TC3 land," McPherson said.
“The majority of TC3 homes that are being sold require work within the EQC cap of $100,000. Typically the buyers are red zoners seeking to stay in the same neighbourhood, first-home buyers taking advantage of low interest rates to escape high rents or people relocating to Christchurch.”