Listings in the rural town of Ashburton, south of Christchurch, are not hanging around, says Sarah Smith, sales manager for Bayleys Ashburton.
The market was steady to the point of active with some houses barely listed before they got offers.
First-home buyers were among those out looking as people sought more affordable prices, hailing from not just Christchurch but from the North Island.
Christchurch was only an hour’s commute, Smith said, and many people were willing to do that for the sake of a smaller mortgage.
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“There’s a new motorway from Rolleston so it’s an easy hour to get up to Christchurch if you are working there.”
North Islanders, too, including downsizers, were citing the high cost of living as the reason for moving south.
“They want a smaller house, less mortgage. Just the usuals, I’d say. That’s pretty much nationwide.”
Canterbury had a lot of stock on the market compared to other years and it was selling. Part of the reason was people had finished waiting around to see if interest rates would drop.
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“You sometimes think, ‘well, we just have to get on with life now’. Certainly, there was a lull six months ago but it’s definitely active at the moment and coming into winter, that’s not kind of usual.
“We’re in May, we usually see a quieting down but we are very steady at the moment. Prices are slowly rising but it’s still good value down here.”
Other Canterbury towns were also reporting a similar trend.
“We’ve got Methven [about 35km north of Ashburton] in our market as well and that’s always busy,” Smith said.
“It’s that holiday market. It demands a bit of a premium price but it’s cheaper than your Wanakas, your Queenstowns.”
The alpine village of Methven, at the base of Mt Hutt, had the ski field as an attraction and had new hot pools.
“It’s just got a lot happening at the moment up there, new cafes. A lot of people are moving there from the North Island who can work from home.”
Pricewise a property in Methven might cost $100,000 more than for the same property 20 minutes down the road in Ashburton, she said.
For sale: 29 Patton Street, in Methven, Canterbury, has a sleek finish. Photo / Supplied
Close to Methven is Rakaia Gorge, shown here with Mt Hutt in the background. Photo / Getty Images
An expensive property would be around the $1m mark in Methven, which would net the buyer a new build with four bedrooms and two bathrooms.
The comparison of what that amount bought in Auckland could explain why so many Aucklanders were moving down, she said.
“For $1m you’re getting the best house in town rather than your entry level in Auckland maybe.”
Ashburton itself, a large rural service town, was “a happening place”. There was a lot of dairying and “old money” which kept the town buzzing, she said.
“We’re having new businesses open up all the time – 30 eating establishments in town now which is a lot for a small town.”
A Bayleys listing in Allenton, Ashburton, at 56 Belt Road, was indicative of one of the more expensive homes on offer.
The two-storey classic character home is on for offers over $899,000 and has four bedrooms and two bathrooms and is set on a quarter acre section.
The house was beautiful, and affordable, Smith said. Another offering, likely to fetch in the high $500,000s, could be found at 65 Winter Street.
This four-bedroom family home from the 1970s is close to town and has a pool.
A four-bedroom family home at 65 Winter Street, in Ashburton, is being marketed as a renovation opportunity. Photo / Supplied
A cheaper home would be in the early to mid-$400,000s, but Bayleys did not have any on the books as they were getting snapped up fast.
The small town of Rakaia, about 20 minutes north and closer to Christchurch, had also seen listings move quickly, Smith said.
“It’s a way small town but it’s on State Highway One. It has a school. It’s a smallish village.”
In Methven, 29 Patton Street is for sale with Rosa Dekker and Simon Sharpin, from Bayleys.
The extensively renovated four-bedroom, two-bathroom property has an RV of $640,000 and is for sale by deadline sale.
Dekker said Methven was an “absolutely beautiful” place to live with the mountain looming over the town.
“We are coming into winter here where our town gets a lot busier. They used to say that our population nearly doubles because of the skiing and the staff they need to man the mountain and obviously all the other industries in Methven and all the cafes and things all need more workers as well, so we’re starting to see that pick up.
“With that comes people looking for holiday investment properties so they’re all starting to come back into the market as well.”
The year had started slowly but had picked up in recent weeks.
“I think everyone’s got a lot more confidence or have just come to realise that the economy is what it is and just to get on with things rather than wait to see what happens, because nothing’s really changing dramatically.”
A three-bedroom new-build on Gleniffer Place, in Methven, recently fetched $740,000. Photo / Supplied
Dekker confirmed a lot of inquiry was coming from the North Island and Auckland. There were multiple drivers but being able to work remotely was a factor as people searched for a change of lifestyle and lower living costs.
While Aucklanders were keen, the tricky Auckland market was proving troublesome for some wanting to buy in Methven.
Dekker said a couple of deals had fallen over because Aucklanders with jobs in the south had not been able to sell their Auckland homes.
But that was not stopping people wanting a slower pace of life, and Methven was an outdoorsy place offering an attractive lifestyle.
“We’ve got amazing mountain biking and walking and hiking, and the mountain, obviously, during winter.”
All that and it was only 50 minutes to Christchurch airport.
There were plenty of properties to suit, as well. In the subdivision of Camrose, which was still being developed, Dekker sold a three-bedroom, two-bathroom home recently for $740,000.
The highest price point in the subdivision was around $1m, which would buy a “beautiful, beautiful” four-bedroom high spec home.
Methven also had high-end lifestyle properties that might cost over $1.6m, and that amount bought a lot of property compared to Auckland.
A four-bedroom home with an “exceptional” outlook was due to settle this week for around the $1m mark in a small subdivision on the edge of town with views of the racetrack and out to Mount Hutt.
“Like, it’s phenomenal, and again that’s a lot of property for around $1m.”
Likely to settle this week is a four-bedroom home on Tactician Lane, in Methven. Photo / Supplied
Further south in the port town of Timaru, Carlae Keates-May, Bayleys south Canterbury manager, said the strongest buyer group out looking was first-home buyers but investors were also coming back.
“Open homes are fantastic. We’re getting lots of people through the doors.”
Having said that, rural agents had noticed a drop off in the past few weeks because winter was a quiet time.
“But last winter was busy so you just can’t pick it I guess.”
And while rural agents were noticing the quiet, that was not true for lifestyle and residential agents who were finding there was not enough stock to meet demand.
Inquiry was coming from local first-home buyers but also from Auckland, and people who moved to Timaru for job opportunities.
“We’ve got a good agricultural sector, education, medical, so hospital staff, and also we’ve got the port which is always hiring.”
A two-bedroom unit at 2 Gleniti Road, in Gleniti, Timaru, is seeking offers over $479,000. Photo / Supplied
A three-bedroom home on a 4502sqm section at 113 Temuka-Orari Highway, in Winchester, Timaru, is seeking offers over $856,000. Photo / Supplied
Locals called Timaru “alps to ocean” because of its great location where lakes and mountains could be accessed along with the coast.
“It’s a good destination to come and be in the centre.”
The town had grown and not just because of Aucklanders.
“I think we get a big variety to be honest with you. I’ve dealt with people from the Far North. I’ve got a chap from Invercargill who came to look at a property at Pleasant Point with me so it really is from top to tail.”
Again, the attraction was the affordability factor with an average house selling around the $450,000 to $550,000 mark.
A two-bedroom for sale at 2 Gleniti Road is listed for $479,000-plus, and Keates-May has a listing on the Temuka Orari Highway for $856,000-plus.
The property was a gorgeous one in Winchester and perfect for someone wanting a hideaway close to the highway, she said.
Harcourts Timaru agent Julian Blanchard said the market had been quite buoyant for the last couple of months.
He said first-home buyers were coming back mainly because interest rates had stabilised and rents had increased which meant houses under $500,000 were in good demand.
“Sale volumes have, like a lot of the country over the Xmas/New Year period, were down but are showing signs of increasing.
“The job market and economy here are still strong in some sectors with new businesses opening up and developments happening meaning there are jobs available in the region, especially around the agriculture/food manufacturing industries.”
There were steady inquiries from out-of-town buyers across price bands, with people moving closer to family or for work and a fresh start freeing up their mortgage.
A two-bedroom home at 51 Dunkirk Street, in Marchwiel, Timaru, is priced at $295,000. Photo / Supplied
A luxury home for sale at 33 June Street, in Highfield, Timaru. Photo / Supplied
Timaru had a cross-section of properties available, including a striking four-bedroom, three-bathroom home in the $1.5m range in June Street in Highfield.
The home belonged to one of the premium builders in the region and was originally built in 1953 as a standard, small brick home that had been transformed, extended and added to, taking advantage of “amazing” views across Timaru, the Pacific Ocean and the Southern Alps.
A house also built in the early 1950s, by contrast, was on for $295,000.
The Dunkirk Street, Marchwiel, two-bedroom house was built as one of three state houses next to each other, said Blanchard.
It was healthy homes compliant and had been used as a rental with an appraisal of $390 a week offering a good return for the investment.
Likewise, it was a great starter home. “An out-of-towner owner paid $105,000 for it in 2013 so not only a good rental return but offering capital growth as well.”
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