Phillipstown, Christchurch's second cheapest suburb, has emerged as the biggest winner in the latest OneRoof Property Report figures measuring value growth in city.
The median value of properties in the suburb grew 2.2 percent in the second quarter of the year.
The leap in values is reflective of the suburb's proximity to the central city, its attractive price point, and the rise in first-home buyer activity in the city. The median value of properties there is $290,400 - close to what many buyers would have secure as a deposit for a house in Auckland.
Only four other suburbs showed value growth of more than one percent: Cashmere (up 1.8 percent to $719,800); Christchurch Central (up 1.5 percent to $447,200); Fendalton (up 1.4 percent to $1,135,350) and Strowan (up 1.3 percent to $824,900).
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The majority of suburbs saw little or no growth in the second quarter of the year. The biggest slips in value were in Speydon at (-1.8 percent), Avonhead (-1.7 percent) and Akaroa (-1.5 percent) - marginal at most.
Overall, values in Christchurch were flat, rising just 0.10 percent to $494,707. Given that values in the city have been flat for the past few years, and that the city has its special dynamics, this shouldn't be cause for alarm.
In fact, increased first home buyer activity and the Reserve Bank's decision to keep rates on hold for the near future suggests that Christchurch could, according to CoreLogic analysis, be ready for the next upswing, "as long as there are jobs and the supply/demand balance is favourable".
Ironically, the strongest performer for the year is Christchurch's most expensive suburb, Fendalton, which saw value growth of 4.4 percent.
The largest decline for the period was in Aranui, which dropped 5.4 percent. The suburb, which has a large proportion of state housing, is also Christchurch's cheapest suburb, with a median value of $289,750.
Jim Davis, Harcourts South Island regional manager, says low stock levels, not lack of buyer interest, have contributed to recent pressure in the market, with sales numbers dropping in the city.
"However, the median sale price has not dropped away and neither has the average days on market. There is no doubt there are buyers out there, it’s just that when they have seen everything on the market and there is no new property to inspect, they are just choosing to wait, till the right property comes along," he says.
"What is very obvious at the moment is that as soon as new property is listed, the interest in it is huge, and quite simply a lot can get snapped up and sold quickly."
