The top end of Christchurch's housing market is still booming, agents in the city have said, citing busy open homes and strong bidding action at auctions.
Several told OneRoof this week that some buyers were prepared to make a purchase before they had sold their own home.
“It’s like 2021,” said Harcourts agent Richard Burt, who marketed a three-bedroom relatively new home in Huntsbury that sold under the hammer last week for $2.65 million, more than twice its 2019 RV of $1.14m.
“We had over 90 groups through the property and 15 registered bidders at the auction. Eight of them put their hands up and when it got to the $2.1m, it was four people and then two fighting it out.
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“A lot of people had gone into the auction expecting [a sale price of] around the $1.5m. The highest sale price in the neighbourhood in the last six months was $2.05m, but this house offered a lot more.
"There were a lot of gasps in the auction room.”
The three-bedroom house on Great Gables Lane, offered clear views of Christchurch. Photo / Supplied
Burt said that the house had ticked a lot of boxes for buyers, which meant many were prepared to bid on the property without first selling their own home.
“The buyers had been looking for two and a half years for the right house - anywhere on the hills. They are few and far between.
“Our vendors are very flexible about settlement, looking at eight weeks or 12 weeks."
He added: "People still have the fear that someone will come in from Auckland and out-bid them.”
Last week, Bayleys agent Adam Heazlewood sold a renovated turn-of-the-century house with outdoor pool for $3.25m at auction.
The five-bedrom property on Knowles Street, Merivale, had an RV of $2.22m, but Heazlewood said bidders had ignored that number. “It’s a great price. Anything over $3m was ideal,” he said.
A renovated five-bedroom home on Knowles Street, in Merivale, sold for $3.25m. Photo / Supplied
He said buyer interest was high thanks to the high standard of the renovation, adding that all of the bidders at auction were existing homeowners.
“They all needed to sell their own house, but they all knew you don’t see too many homes of this quality, and they were prepared to take that risk.”
Heazlewood said that there were plenty of buyers at the upper level and not enough stock.
Harcourts Papanui agent Cameron Bailey agreed that buyers in upmarket Fendalton and Merivale were still comfortable buying before they sell.
A brand-new five bedroom home on Clifford Avenue, in Merivale, is for sale by negotiation. Photo / Supplied
“People [buying] at $3m plus have equity, so they can make a decision on securing their next place,” Bailey said, adding that while the exceptional market of the last two years had gone, top properties like one he is currently marketing at 36 Clifford Avenue, in Merivale, would still get top prices.
“The FOMO has gone and buyers know they’ll have a choice of five to ten houses [in their price bracket] but sellers can comfortably sell without too much stress.”
“The market is different from the very crazy market last year; it’s come back into the normal market. Honestly, if it stayed like this for the next ten years, everyone would be happy.”
Figures from the Real Estate Institute of New Zealand show that auctions are more popular in Canterbury this year than last, accounting for 33.2% of sales last month compared to 32.7% in March last year.
