Welcome to the latest edition of Bayleys Canterbury’s Selection magazine – we are sensing more positivity in the market with the uncertainty of the general election now (mostly) behind us and spring’s arrival in full swing.
Canterbury’s property sectors are once again set to see a greater degree of activity than has been the case over the past three months – which have seen a state of seasonal hibernation compounded by election nerves.
Both of these dynamics come in to play regularly – albeit while the winter chills are evidenced annually, the election ‘wait and see’ mindset only comes to the fore every three years. So, here we are back to ‘normal’ – bolstered by a better-than-expected performance in the Rugby World Cup, and an incoming Government promising “change.” This mood of change is particularly pertinent for the property sector – with changes expected to both the bright line sales period being reduced back to two-years, and interest deductibility on investment property borrowing being reinstated over the coming years.
We believe these moves will reignite activity in the residential property market – with more investors coming back in the private sector. This sector has been noticeably quiet in the last few years due to the increased costs for operating rental properties. A more positive mindset in the residential property sector should eventually flow through to the commercial property sector.
Latest stats out from property data agency CoreLogic have seen sales values stabilise nationally in the residential sector, with three-month pricing levels rising 0.2 percent in Christchurch (comparing favourably to 0.4 percent in the Auckland residential market).
CoreLogic NZ Chief Property Economist, Kelvin Davidson said: “It was only a matter of time until property values found their floor and then started to rise again, and it’s this emerging growth we’re starting to see in the data.”
“Housing market confidence seems to have turned a corner, supported by a rough peak for mortgage rates, high net migration flows, a still-solid labour market, and an easing in credit conditions.”
Reflecting sentiment we are hearing around the markets, CoreLogic also recorded that the ‘property friendly policies’ of the new National-led Government will most likely underpin recovery in this sector too.
“While a National-led Government may result in house prices rising more than otherwise might have been the case, the impact might be relatively muted. For example, the potential phased reinstatement of mortgage interest deductibility would tend to add some demand to the market,” Kelvin Davidson said.
Spring has been positive for the residential property team of Bayleys Canterbury – with good activity in the auction space. Our clearance rate was 54 percent in September, with many of the properties we marketed receiving multiple offers, and a strong proportion selling shortly after auctions. The total value of the properties we sold under the hammer in September was $29,356,500 – the highest value since April 2023. Average sales prices for properties transacting through the auction process are increasing.
Meanwhile in the commercial and industrial sector, the Bayleys Canterbury team took the number one position for signing up and extending existing leases across all Bayleys offices in September.
Our Country team has also seen a lift in rural and lifestyle properties coming to the market. The latest Country Magazine has been released with a significant portfolio of dairy, horticulture, viticulture and lifestyle properties across our region and New Zealand.
With the election behind us, many people are now looking ahead to Christmas. Many of the appraisals undertaken by the Bayleys Canterbury sales teams over the past few months are now being converted into full marketing campaigns, with vendors instructing us that they are seeking to have deals concluded before Christmas.
With all this in mind, as ever, should any of the properties in this edition of Selection magazine attract your attention or if you want to discuss any aspect of the property market in greater detail, please feel free to contact the multi award-winning Bayleys Canterbury team.
We look forward to hearing from you.