A two-bedroom unit in Merivale, Christchurch, sold under the hammer last week for $480,000 as agents reported that there were bargains still to be had even the city’s most expensive suburbs.
The recently renovated St Albans Street property, marketed by Bayleys agent Bob Eastgate, was pitched at a wide range of buyer groups due to its prime location and good school zoning.
The sale price is the lowest for Merivale this year, snatching the record from a property in Rugby Street that fetched $570,000 in January.
With an average property value of $1.553m, Merivale is Christchurch’s fourth most expensive suburb for real estate.
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Luxury homes in the popular suburb and in neighbouring Fendalton and Strowan, where the average property value is $1.77m and $1.22m respectively, can easily fetch $5m.
But agents told OneRoof that older units and do-ups in the suburbs can be snapped up for a tenth of the price.
Fendalton’s cheapest home this year was a freestanding do-up also on Jeffreys Road, which sold for $651,000 in May, while Strowan’s lowest sale this year was $467,000 for home, also on Jeffreys Road.
Bayleys Christchurch agent Angela Webb, who specialises in investment properties, says there are a lot of older ex-rental properties coming to the market in these more expensive areas due to investors retiring.
Fendalton’s cheapest this year was a do-up on Jeffreys Road, which sold for $651,000 in May. Photo / Supplied
Webb has been carrying out property appraisals for people over the age of 55 who are selling their rentals in the areas after 20 or so years and had decided the new rules for landlords had made it too hard.
“It’s people who have already made gains in the property and with the lack of interest deductibility have decided to get out of the market.”
Those properties are now being snapped up by first home buyers who are buying into the area with plans to renovate the property. “It’s a great time to be a first home buyer and get into those areas,” she says.
“I would probably say if you can pick anything up in those areas under the $600,000 mark, it’s a great buy.”
Webb said properties under $600,000 were usually 1960s to 1970s units in a block of four and often needed new kitchens and bathrooms, but they could be few and far between.
These more affordable properties are also often located on the fringes of the sought-after suburbs and could for example almost be counted as St Albans rather than Merivale.
Harcourts agent Zani Polson said anything selling for under $500,000 in Christchurch is cheap, let alone one in one of the more exclusive suburbs.
“Anyone who has that level of budget needs to really be taking advantage of those sort of opportunities.
“Even now days – what two to three years ago you would never even have thought of spending more than $500,000 in the eastern suburbs, but now that’s really common place and I think it’s about time that these locations that are quite family friendly are being given that opportunity.”
Polson said there are still some good buys for savvy buyers all over Christchurch and buyers shouldn’t just focus on those high-end suburbs, she said.
A two-bedroom home on Stanmore Road, Linwood, is priced at $459,000. Photo / Supplied
Buyers looking at the lower-end of the market, which for first home buyers ranged between $500,000 and $700,000, should also consider two to three-bedroom townhouses or units or properties.
Likewise, she said cross lease is another option and is “nothing to be scared of”. “They actually allow you as an owner hold your neighbours to account a little bit more due to the leasehold documents.”
Polson is about to list some properties in Sockburn and said houses in these fringe suburbs could become good rental locations and still have good school zones.
“I think that some of the buyers who were burnt last year that felt like the market was getting away on them, I think those are the buyers who should be coming back now to find stuff because there are some good properties to be had out there.”
A four-year-old terraced apartment at 102/116 Stanmore Road has just had a $10,000 price reduction and is now for sale for $459,000.
https://www.oneroof.co.nz/102-116-stanmore-road-linwood-christchurch-city-canterbury-1774789
Polson said it was properties like this that provided good options for someone as it was on the fringe of the city and could either be continued as a rental or the owners could move into it themselves.
Valocity research analyst Wayne Shum said recent sales under $500,000 showed there are still bargains to be had in some of these expensive suburbs.
“They tend to be smaller unit, shared driveways, cross lease or unit titles – but there are still entry level properties in there.”
However Shun said they usually only made up a small proportion as most of the properties in these areas were freestanding homes.
With the tougher tax rules making it harder for investors, Shun expected the cheaper units in Fendalton, Merivale and Strowan to attract first home buyers and downsizers who wanted to stay in the neighbourhood but no longer needed a six-bedroom home.
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