Residential Market Update
NICK COWDY / Residential Sales Consultant, Principal Agent
In the March update from the Real Estate Institute of New Zealand (REINZ), Chief Executive Jen Baird highlighted a significant uptick in the country’s housing market activity. With a surge in listings, an increase in stock levels, and shifts in median sale prices, the market is buzzing with increased activity from investors and first-home buyers.
A Surge in Listings and Sales
Nationally there was a substantial rise in property listings, indicating heightened market activity. February saw a remarkable year-on-year increase in stock levels, leading to a more extensive inventory of properties available for sale.
Canterbury has witnessed a notable rise in activity, with the median price in the region increasing by 5.2% year-on-year to $705,000. This growth is indicative of a robust demand, fuelled by first-home buyers and owner-occupiers who are the most active buyer groups in the region. The willingness of vendors to meet the market, coupled with some adjusting their asking prices upwards, reflects a healthy and dynamic market environment.
Interest rates and the cost of living continue to be pivotal factors influencing the market. However, local salespeople report growing positivity and returning confidence, suggesting a stable market outlook for the months ahead.
Christchurch – A Market in Bloom
Christchurch City has shown remarkable performance. The median price in February 2024 rose to $721,000, up from $649,950 in January 2024 and $675,000 in February 2023. This significant growth not only highlights our city’s strong market conditions but also underscores the increasing value of properties within the area.
The sales count in Christchurch further emphasises the growing market activity, with a rise to 566 sales in February 2024, a 28.9% increase year-on-year. This surge in sales activity is a clear indicator of the strong demand from buyers.
The Broader Picture
Overall, the New Zealand housing market has experienced a substantial uptick in activity, with increases in listings, stock levels, and median sale prices across the board. The recent changes in government policies, including the adjustment of the bright line test back to two years and the reintroduction of interest deductibility on investment properties, have contributed to the market’s buoyancy. This positive momentum is a welcome sign after a period of relative stagnation.
First-home buyers and owner-occupiers have been the most active groups in the market, and there is growing interest from North Island buyers in regions like Canterbury. The market dynamics are influenced by interest rates and the cost of living, with varying degrees of caution and eagerness among buyers.
Looking Ahead
With a new record high set in the regional House Price Index (HPI) and steady growth across key indicators, Christchurch is poised for continued success in the housing market. The active participation of first-home buyers and the strategic positioning of sellers indicate a balanced and thriving market environment.
As interest rates and the cost of living continue to influence buyer behaviour, the market’s stability and the growing confidence among local agents suggest a promising outlook for Christchurch.
Tips for Securing a Rental Property
OLIVIA COWDY / Manager, Property Management
Renting a home is a rite of passage for many Kiwis, with experiences ranging from the eagerly anticipated move into a first home to the challenges of finding a place that feels like home. The rental market can be fiercely competitive, leaving many prospective tenants wondering how they can stand out in the crowd. The key to securing a good rental property lies not just in meeting the basic requirements, but in showcasing yourself as the ideal tenant that landlords are eager to find.
View the Property As Soon As Possible
In a competitive market, you should try to attend the first viewing. Missing this opportunity could mean someone else secures the property before you even have a chance to view it. If viewing times aren’t listed, contact the property manager to arrange a time to view.
Make a Lasting First Impression
The journey to securing your dream rental begins with the right first impression. Being punctual, dressing smartly, and engaging in a friendly manner can significantly influence a landlord or property manager’s perception.
Perfect the Application Form
Accuracy and completeness in your application form are paramount. In a competitive market, landlords and property managers are on the lookout for quality tenants who can streamline the selection process. Expect to provide information about your rental history, references, evidence of affordability and identification.
Advising your references that they may be contacted for a rental reference can help expedite the process, as they will be prepared and expecting a phone call. Being prepared can demonstrate your transparency and reliability.
Ensuring all information is correct and complete the first time around can prevent delays in processing your application. Honesty is crucial; embellishing facts, especially about your references or credit history, can lead to complications down the line.
Be Responsive
Once you’ve applied for a property, be readily available to respond to the property manager if they have any questions about your application. This will speed up the application process and could help you get ahead of other applicants.
Have your Finances Ready
Once you have been offered and accept a rental property, you will likely need to pay a bond and rent in advance. Make sure you have your finances ready to pay the bond and the required number of weeks’ rent in advance. The Residential Tenancies Act limits landlords to collecting a bond of up to four week’s rent and up to 2 weeks’ rent in advance.
Securing a rental property requires more than just meeting the basic criteria. It’s about presenting yourself as the ideal tenant through punctuality, presentation, honesty, and preparedness. The effort you put into your rental application reflects your commitment to being a responsible and reliable tenant.
If you are looking for a rental, check out our listings here.
Navigating the Complexities of Commercial Property Investment
SAM COWDY / Commercial Sales & Leasing Consultant
Investing in commercial property can be a lucrative venture, but it requires a deep understanding of various factors to ensure a profitable and smooth operation. From the location of the property to the intricacies of managing your investment, each aspect plays an important role in the success of your investment.
The first step in evaluating a commercial property investment is understanding its location. The area’s current status and future prospects can significantly impact the types of tenants you attract and retain. Consider whether the property is in a well-established or up-and-coming area, the surrounding buildings, zoning, accessibility, and any future plans for the region. These factors will influence your investment’s long-term viability and growth potential.
A thorough inspection by a qualified professional is important to assess the building’s structural integrity, fixtures, fittings, and chattels. To understand the building’s compliance with New Building Standards (NBS), obtain a Detailed Engineering Evaluation (DEE). This information is vital for both legal compliance and informing potential tenants. It’s also important to identify the presence of asbestos, which requires an Asbestos Management Plan under current health and safety regulations. This could affect tenant appeal and involve additional compliance costs.
For properties in regions prone to earthquakes, such as Canterbury or Wellington, verify any earthquake damage and the quality of repairs. Commercial buildings are not covered by EQC, and insurance claims may not be transferable to new owners, making this a critical step in your due diligence.
Understanding the type of property title—freehold or unit title—is essential. Unit titles involve more complexity, including adherence to body corporate rules and potential ongoing costs. Thorough research into the body corporate structure and any ongoing issues is necessary for informed decision-making.
Decide whether you’ll be an owner-occupier, lease out the building, or a combination of both. This decision will influence renovations, compliance requirements, and financial considerations. If you are considering being an owner-occupier, assess if the building meets current and future business needs, including necessary modifications and costs.
If you are looking to lease the building, evaluate the quality of existing tenants, lease terms, rental rates, and outgoings. Understanding these factors is essential for assessing the property’s income potential and growth opportunities. You will also need to consider whether to manage the property yourself or hire a property manager, especially for multi-tenanted properties. This decision affects time, expertise required, and cost implications, including the ability to pass these costs onto tenants.
Investing in commercial property involves navigating a complex landscape of legal, financial, and practical considerations. By paying close attention to these key areas, you can make informed decisions that maximise your investment’s potential while minimising risks. The foundation of a successful investment is thorough research and expert advice. Doing your homework and consulting with commercial property experts can prevent unexpected challenges and ensure a successful investment.
For expert advice and assistance on your commercial property investment journey, get in touch with one of our commercial agents today.
Buying with Confidence at Auction
ROGER DAWSON / Apollo Auctions
With the Auction method of sale now firmly established in the New Zealand property market, listings you like may inevitably go to auction. It doesn’t need to be daunting, and here are a few tips to help.
Educate Yourself
Visit other properties going to auction before the scheduled date of the property you like. Learn the strategies that various buyers use – there is no definite “right way” to bid. Watch how some bidders bid strong and quick, in large and small increments. Others take their time and slow the process down with smaller bids.
Work with the agent selling the home or the agent you are working with. They can bid for you with your approval and can often win with their experience. You can also have a relative or friend bid for you, if preferred.
Listen to each auctioneer’s style and patter and be aware of the Vendor Bid and why and how it is used.
Set a Limit
Getting lender’s pre-approval to bid is vital. Your bids on auction day will be cash and unconditional. Know your limits and be prepared to miss out on some homes as you gather experience. However, have a little fighting fund just in case, as some auctions are won literally on the last $1,000 or $2,000 bid when another bidder gives up.
Sometimes buyers don’t win an auction until their third or fourth try.
Get Terms to Suit Your Circumstances
Ask for things like a smaller deposit or a change of settlement date if they will help you bid. While the terms of sale call for a 10% deposit, most vendors are agreeable to a smaller deposit.
This is helpful for first-home buyers and KiwiSaver buyers who can bid at auction with a lender’s pre-approval.
“Learn the strategies that various buyers use – there is no definite “right way” to bid”
Get to Love Auctions
This is not a flippant comment. The Auction method of sale is the only method where buyers get to see what others are prepared to pay. All bids are open and transparent, including Vendor Bids. A buyer can instantly decide to increase their bid, particularly if another buyer shows signs of hesitation. By contrast, all other methods of sale, are not open and transparent. If there are multiple parties interested, and therefore multiple offers, they are all written up and sealed in an envelope with buyers not knowing what anyone else will pay.
Regular reports of frustration and disappointment surface when someone misses out, only to say…. “if I just knew what I had to pay, I could have paid more”.
What if I’m the Only Bidder?
Great! Being the only bidder at auction is a real advantage as you, as a cash buyer, get a head start on those who need conditions. Depending on the state of the market at the time of the sale, as many as 50% of auctions can be won with only 1 bidder.
Be the Highest Bidder
Many auctions don’t automatically sell straight away. Sometimes the bidding slows and will stop mid-auction, and the auctioneer will say something like “I’m not at a level where I can sell the property”. This means they haven’t reached the Reserve Price. Normally they will then check with the vendor, before inviting the highest bidder for a private conversation and ask them to pay the reserve price. At this point, only the highest bidder will get that chance. They can say yes or offer a different amount.
It’s a valuable right to gain, and many auction sales are then successfully concluded as a result of this negotiation.
There are numerous websites which offer great advice on bidding at auctions, including REINZ.co.nz and REA.govt.nz. Most companies conducting auctions will also have information on their websites. Helpful videos, including one on “buying with confidence at auction” can be found on my website, here.
I take many phone calls from parties keen to learn how to benefit by bidding to win at auctions.
Searching Like a Pro
Ready to crack the code to your perfect property match? It’s all about mastering the art of the search on leading property platforms like TradeMe, RealEstate.co.nz, and OneRoof. Whether you’re on the hunt for a first home or a lucrative investment opportunity, this guide will show you how to effectively use search features and filters to narrow down your options and find listings that fit your specific criteria.
TradeMe, Realestate.co.nz, and OneRoof offer an array of search features and filters that are invaluable for zeroing in on your ideal property. To start, you can input basic criteria such as location, price range, and property type to cull the extensive listings down to those that fit your initial requirements. From there, refine your search further with filters like the number of bedrooms and bathrooms, land area, and specific keywords that highlight must-have features (think “garage” or “sea view”).
The real power, however, lies in the more nuanced filters. For example, TradeMe and OneRoof allow you to sort by “Open Homes” to plan viewings, while OneRoof also offers filters for the type of Title and “Lifestyle” for more bespoke needs. Each site also has interactive maps to visualise property locations and the surrounding areas. The mobile app for Realestate.co.nz also allows you to draw a circle around an area of your choosing, tailoring your search results even more. To use these features effectively, start broad to see what’s out there, then incrementally apply filters to refine your search, saving your favourite searches or setting up alerts to stay informed as new properties hit the market that meet your defined preferences. By understanding and utilising these tools, you can ensure a more efficient and targeted property search experience.
As you delve deeper into these platforms, you’ll discover that the devil is truly in the details. Take advantage of features like ‘saved searches’ to keep your preferences on tap without starting from scratch each time you visit. Both TradeMe and Realestate.co.nz allow you to receive notifications, so you’re instantly updated when new properties meeting your criteria come on the market, ensuring you never miss an opportunity. Additionally, comprehensive sorting options enable you to prioritise listings by date listed, price, or relevance, so you’re always viewing the most pertinent properties first. Learning to effectively manage these tools will not only save you time but will bring you several steps closer to that dream property.
The key things to remember to ensure you get the best results are –
- Input basic search criteria as a starting point.
- Use detailed filters such as number of bedrooms, bathrooms, land area, keywords and take advantage of nuanced filters.
- Interactive maps provide visual aids to pinpoint locations.
- Progressively apply filters to refine results.
- Save searches and set up alerts to get notifications for new listings that meet your criteria.
- Use sorting options to order listings by date, price, or relevance to see the most relevant properties first.
In the quest for your ideal property, leveraging the full suite of search capabilities offered can turn an overwhelming task into an exciting exploration. Remember, the perfect property is out there, and with the right approach to these digital resources, you’ll be well-equipped to claim your own slice of real estate paradise.
Happy house hunting!
Welcome to the Team
In late 2023, we welcomed Indi Furze into our residential sales team. Hard working, energetic, and driven, Indi is a great addition to the team. We caught up with Indi to get to know her better:
Q: What is your position at Cowdy?
A: Residential Sales Associate
Q: What is the most exciting part of your job?
A: : Inherent dynamism: no two days are alike and connecting with a wide range of people.
Q: How long have you lived in Christchurch?
A: 20+ years
Q: Why do you think people would like to have you as their Real Estate Agent?
A: I am a relatable, energetic, empathetic, and genuinely dedicated professional. I’m not just hungry for the work, I’m committed to going the extra mile for my clients!
Q: What jobs have you worked prior to joining Cowdy?
A: I worked in Sales, and have also been a Personal Assistant.
Q: How do you spend your spare time?
A: Drinking coffee, riding my bike, or spending time with my favourite people!
Q: What’s a skill you have you’d like to improve on?
A: I’m working on finding that sweet spot between work and life, ensuring that both thrive without compromise!
Q: What is your biggest motivator?
A: What keeps me going, and where my motivation really stems from, is the fulfilment I get from being part of pivotal moments during real estate transactions. It is so rewarding, and the meaningful experiences (that I don’t forget) is what really drives my passion for this career.
What You Need to Know about the Christchurch City Council’s Long Term Plan 2024-2034
As Christchurch residents, it’s crucial to stay informed about the decisions and plans made by our local government. The Christchurch City Council is currently in the process of finalising its Long Term Plan (LTP) for the next decade, covering the years 2024-2034. In this article, we will delve into the key highlights of the LTP, its impact on the community, and why it matters to you.
Understanding the Long Term Plan (LTP):
The Long Term Plan, reviewed every three years, serves as a roadmap for the Christchurch City Council. It outlines the Council’s activities, services, capital programs, and financial strategies for the upcoming decade. It’s essentially a comprehensive budget that determines how the Council will provide essential services and infrastructure while managing its finances effectively.
Public Involvement:
One noteworthy aspect of this year’s LTP is the Council’s commitment to transparency. Mayor Phil Mauger emphasises that most of the briefings and discussions have been open to the public throughout the process. This approach allows residents to gain insight into the intricate balancing act of developing these budgets, ensuring that the community’s voices are heard.
Proposed Rates Increase:
One of the most significant elements of the LTP is the proposed rates increase, which currently stands at 13.24%. However, it’s important to note that this figure is subject to change as Councillors make further adjustments to the draft plan. The initial increase largely results from a reduction in dividend from Christchurch City Holdings Limited (CCHL), which had been considered at a higher level initially.
Financial Strategy:
The Financial Strategy plays a vital role in the LTP. It outlines how the Council plans to fund its services, facilities, and assets over the next decade. This strategy utilises a mix of financial tools, including rates, fees, charges, government subsidies, and debt, all tailored to meet the community’s needs as cost-effectively as possible. Mayor Mauger stresses the importance of balancing the budget while keeping rate increases in check to minimise the financial burden on households.
Council-Owned Properties:
In addition to budgetary considerations, the Council is also addressing the process and criteria for the disposal of Council-owned properties, particularly those in the Port Hills residential red zone. This is an essential part of the LTP, as it impacts the future development and use of these properties within the community.
As the Christchurch City Council moves closer to adopting its Long Term Plan for 2024-2034, it’s important for residents to stay informed and engaged in the process. The proposed rates increase, financial strategies, and property disposition all have significant implications for our community. By being aware and participating in public feedback can help shape the future of Christchurch and ensure that the Council’s decisions align with our community’s needs and expectations.
The draft plan can be found here and submissions are open from 18th March to 21st April 2024.
Te Kaha Stadium – The Latest
Te Kaha, Canterbury’s Multi-Use Arena, is unfolding before our eyes, promising to redefine our city’s skyline and cultural landscape.
The construction team’s dedication is evident in the rapid progress of the upper bowl of the south stand, which is now extending around the southeast corner towards the eastern stand. The arena’s immense scale is becoming more apparent each day as the steelwork of the upper bowl advances, painting a vivid picture of the excitement that awaits.
The arena’s structural framework continues to evolve, with significant advancements in the steelworks for all stands and the pre-assembly of the roof. A key milestone has been the commencement of the radial truss roof supports installation, a critical component for the arena’s iconic design. The installation of precast concrete double tee floors on the western and eastern stands, alongside the tiered seating plats on the southern and western stands, marks another step forward in creating a venue designed for unforgettable experiences.
Behind the scenes, the logistical orchestration is just as impressive. Over the coming months, the site will receive approximately two oversized deliveries per week, scheduled meticulously to minimise impact on local traffic. These early morning operations ensure that the structural steel components arrive on-site ready for the day’s construction activities.
With an estimated completion date in mid-2026, Te Kaha is on track to become a cornerstone of Christchurch’s revitalisation. Designed to host international and national events, from All Black tests and Football World Cup qualifiers to major concerts, the arena is poised to become a beacon of entertainment and sporting excellence.
As we witness the transformation of our city’s landscape, the anticipation for Te Kaha’s completion grows. This arena is not just a testament to our community’s resilience and vision but a promise of the vibrant cultural and sporting events that lie ahead, set to elevate Christchurch’s position on the world stage.
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