Returning expats have been bringing heat to the post-Covid-19 property market, pushing prices up in auction rooms and putting the squeeze on local buyers.
Auckland has been the focus of much of the attention, but what about the rest of New Zealand?
Bayleys Canterbury general manager Pete Whalan says his agents have noticed a lift in enquiry from expats with backgrounds in tech, especially those currently based in the UK.
Overseas Kiwis have been looking for family homes in Christchurch and in some cases buying them without setting foot in them, he says, adding that IT specialists are attracted by the job stability in the city and the lower than Auckland house prices.
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However, expats make up a small portion of buyers in the current market, which has a 75 percent auction clearance rate. "The opportunity to buy a nice property for a realistic amount of money is bringing people in,” Whalan says.
The added push from expats is having a noticeable effect on the market, with Christchurch seeing some stand-out sales at the top end of the market this week.
63 Santa Maria Avenue, in Mt Pleasant, soldfor $1.125 million at auction. Photo / Supplied
Returning expats have been bringing heat to the post-Covid-19 property market, pushing prices up in auction rooms and putting the squeeze on local buyers.
Auckland has been the focus of much of the attention, but what about the rest of New Zealand?
Bayleys Canterbury general manager Pete Whalan says his agents have noticed a lift in enquiry from expats with backgrounds in tech, especially those currently based in the UK.
Overseas Kiwis have been looking for family homes in Christchurch and in some cases buying them without setting foot in them, he says, adding that IT specialists are attracted by the job stability in the city and the lower than Auckland house prices.
However, expats make up a small portion of buyers in the current market, which has a 75 percent auction clearance rate. "The opportunity to buy a nice property for a realistic amount of money is bringing people in,” Whalan says.
The added push from expats is having a noticeable effect on the market, with Christchurch seeing some stand-out sales at the top end of the market this week.
A grand five-bedroom modern home at 64 Onuku Road, in Akaroa, with views of the harbour, sold for $1.28 million - $430,000 above the 2019 CV - while pre-auction offer on three-bedroom house at 8 Cass Bay Place, in Cass Bay, accelerated bidders to reach a final sale price of $1.25 million - $370,000 above CV.
Also, sporting a water view, a four-bedroom renovated architectural gem at 63 Santa Maria Avenue, in Mt Pleasant, sold for $1.125 million - $75,000 above its CV.
Smart Real Estate agent Dianne Fraser says the expats she has talked to have been looking for investment properties. "With the exchange rate and what you can get for your dollar in Christchurch - the conditions have never been better," she says.
"Christchurch is the last market in the country to rise and it’s still affordable. People say the bubble might burst but we are not seeing it now.”
Ray White South Island regional manager Jane Meyer says there is a new urgency in Christchurch, with crowds at open homes and multiple bidders now a regular feature of the market. “Buyers and vendors recognise just how quickly the Covid-19 landscape can change,” she says.
A three-bedroom do-up home at 86 Crofton Road, in Harewood, sold for $431,000 after attracting 10 registered bidders and 81 groups at the open homes.
Ray White agent Vanessa Golightly says Covid-19 has affected the city’s housing market in other ways. She has had enquiries from several buyers who have abandoned plans to move overseas and are now looking for a home upgrade. “The ones I’ve come across were almost ready to go, sold their home and made huge decisions about going to particularly Australia,” she says.
While Christchurch homes are unlikely to reach the dizzying highs seen in the Auckland market, by the same token they are not as prone to big plunges either. “We don’t have the same highs and lows [as Auckland]. A small change in Christchurch is about $10,000 while in Auckland it’s about $100,000,” she says.
