LVR restrictions have not affected the Christchurch Property Market

Christchurch Metro Overview: The LVR restrictions have not had a marked effect on the property market in Christchurch, with the average residential sales price in October sitting at $479,962 – which is a $53,558 increase on the September figure.

The number of new listings has also increased in October, sitting at 598 compared to 465 in September.

LVR restrictions are not expected to have a large impact in the Christchurch market, which is driven by adversity and high demand.

The city currently has net migration of 261 people each month and all need somewhere to live. With property on the market down by 15.1% compared to the same time last year, it is unlikely prices will cool significantly.

Auctions now account for 34% of all sales in Christchurch and this method of sale is also contributing to the rising average sale price. Vendors are well educated and are increasingly opting for auction as a way to achieve the best result. By comparison, in 2010 prequake only 11% of Harcourts listings were for auctions.

High demand and low supply will continue to be the driver of the Christchurch market for some time yet. Those wishing to enter the property market should do so sooner rather than later.

ChristchurchMarketWatch_Nov_2013.pdf

ENDS

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