Canterbury house prices dipped in April but are still significantly higher than where they were 12 months ago, with agents saying Christchurch still offers the best value for money compared to any other city in New Zealand.
The median house price for Canterbury was $684,000 in April, down 2.3% from $700,000 in March, according to the latest figures from the Real Estate Institute of New Zealand.
Selwyn still has the highest median house price in the region at $830,000, down from $895,000 in March, while Ashburton has the lowest at $455,000, down from $470,000 month-on-month. Christchurch has plateaued remaining at $710,000 in March and April.
Overall house prices in the South Island city remain 20.8% up on the $566,000 median house price reported 12 months ago.
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The number of sales in Canterbury has also taken a dive, with only 761 happening in April, down 29% on March. The number of sales in the region has been steadily declining in the past six months and dropped by 32.1% from 1121 sales in 2021.
Ray White Metro director Tony McPherson was not surprised the median price in Christchurch is holding despite the number of sales dropping off.
There is also double the number of houses on the market in Canterbury in April, with 13 weeks of inventory sitting on the books, compared to just six weeks in April 2021, according to REINZ.
“Good homes in good locations are still selling well,” McPherson told OneRoof.
His office in Christchurch brought forward three auctions so far this week, and the houses that are passing are selling not long after.
Canterbury sits below the national median house price of $875,999 for April - down 1.7% month-on-month, but up 8.8% year-on-year.
Houses in Fendalton, Christchurch. The city's median sale price in April was $710,000. Photo / Peter Meecham
“Christchurch is attractive. It is value for money. It is still the best real estate in New Zealand when you look at our median price compared to Wellington or Auckland,” McPherson said.
Among the properties attracting strong interest was an apartment that belonged to former Christchurch mayor Sir Bob Parker. The residence, which is in a commercial space on Stewart Street, in the central city, sold at auction this week for $1.12 million – more than double its RV of $500,000.
The listing described the apartment as "gritty", "unorthodox", "recklessly urbane" and "distinctly industrial" and "raw".
There were at least five people bidding on the property before it sold under the hammer on Wednesday morning.
The converted apartment is in an industrial building “in an uncommonly quiet street” close to Hagley Park. It was marketed as a trendy residential apartment or commercial premises with restaurant-class kitchen, polished kitchen floor and secure yard.
The listing agent, Harcourts’ Steven Marshall, said: “That property is unique, it deserved the attention it got, and it deserved the result it got.”
OneRoof data shows the property last changed hands in 2008 for $380,000.
Marshall said the sale was a good example of why people should take their properties to auction. “Everybody is going to have a different perception and value and it gets them all in the same room, it gets them in competition and we see who is going to pay the most.
“You are not going to find another like that.”
Sir Bob, right, and Prime Minister John Key survey the damage caused by the 2010 Christchurch earthquake. Photo / Getty Images
Sir Bob’s warehouse apartment was described as "gritty" and "unorthodox". Photo / Supplied
Harcourts Grenadier managing director Andy Freeman said that while the current lending criteria had made it difficult for first-home owners and investors, the strongest interest was still coming from owner-occupiers.
“There’s still people that need a home. Whether it’s their first home, trading down, trading up, relocating for schools or work. That’s the bulk of our business and that market will never go no matter how bad it is or how good it is,” he said.
Freeman said the market was moving back to where it was pre-lockdown and the current drop could be a sign of heading into winter when the market traditionally slowed down.
While prices in the city had shot up in the past 18 months, he believed Christchurch had been playing “catch-up” and still represented good value for money with a median house price of $710,000.
While he said it was anyone’s guess what the market would do, Freeman didn’t expect Christchurch house prices to change much in the next year. And despite more stock on the books, he said there still wasn’t an “abundance” compared to previous years, recalling times when they had more than 2000 houses for sale.
“It’s (houses) still coming on and going off again.”
Last month it took an average 31 days to sell a property in Canterbury, just one day more than the 10-year average for April and two days longer than the month prior.
REINZ chief executive Jen Baird agreed prices in Canterbury were “holding strong” overall.
Feedback from agents was that activity for properties in the mid-to-lower price range was softening, but higher-end properties remained competitive with good results.
“A shift in market sentiment has seen buyers become more selective. Lending restrictions, rising interest rates, and shortage of labour and materials are having a major impact on all parts of the transaction.”
