Ideal time to invest in Christchurch property market
Wednesday 30 January 2013, 4:28PM
By Propellor Property Investments
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If you're looking to invest in property in Christchurch there is no time like the present to start developing your property investment portfolio.
Having bounced back remarkably well post-quakes, the property market in Christchurch is now experiencing something of a boom. As the demand for houses continues to outstrip supply, this is resulting in a rapid increase in house values. One of the key factors driving the Christchurch property market at present is the shortage of homes on the market. In the past 12 months property investors have witnessed a 5.9% increase in house values in Christchurch and in December 2012 the median house price in Christchurch hit a record high. According to a Property Market Report produced by the Real Estate Institute of New Zealand (REINZ), the median price for a house in Christchurch in December was $351,000, an increase of over $25,000 for the same time in 2012.
Red-zone buyers and first home buyers are being encouraged to buy based on the low interest rates and increased returns in some cases.
Returns from rentals and rent prices are at a record high in direct relation to the intense demand for housing in the city. Prior to the earthquakes demand for rentals in and around the city was already high. As the rebuild gains momentum the need for housing for workers in the city will also increase which will in turn affect the rental market.
A major motivation for investing in Christchurch is the exciting plan for the city's rebuild. The estimated cost for construction programme, the largest single construction programme in New Zealand's history, is estimated is US $24 billion. With new greenfields, new civic buildings and facilities being built and the development of an environmentally sustainable transport system and layout complete with cycleways and walkways, the city of Christchurch is set for a dramatic and exciting makeover in the next few years. Even more so than before Christchurch will be a highly desirable and state-of-the-art place to settle.
With fallen interest rates, a high demand for commercial and residential property around the city and the projection that house prices will continue to rise, now is the perfect time to invest in the Christchurch property market.