30 June 2011

Red•zone homeowners look south
Waimate most sought•after in SC
By GUY WILLIAMS - The Courier

   WAIMATE appears to be benefiting the most in South Canterbury as property owners in Christchurch’s red zone look at buying in the region.

   Last Thursday, the Government announced that 5000 Christchurch pro• perties and 100 Waimakariri properties were in the residential red zone, where land has been assessed as too damaged to rebuild on. Their owners must choose one of two options in the next nine months — either sell their property to the Govern• ment at its current (2007) rating value or sell the land only and deal with private insurers over their homes.

   The owner of five L.J. Hooker offices in South Canterbury, Audre Ramsay, said all South Canterbury towns were likely to benefit from an increase in sales, but her Waimate office had received the most inquiries from potential buyers.

   ‘‘They’re going there to buy because what they’re getting for their section in the red zone, they could buy a nice house [for] in Waimate.’’

   L.J. Hooker Waimate branch manager Fiona Hislop said her office had already received offers on houses and sections since last week’s announcement. Houses were cheaper in Waimate than in any other South Canterbury town, she said.

   ‘‘In Waimate you can buy a brilliant house for under $200,000 — Christchurch people can’t believe you can get such a good deal here.’’

   She expected more buyers from Christ• church during the next nine months, but hoped prices would not rise as a result.

   It was unfortunate Waimate was benefiting from the misfortune of Christ• church people, but by housing people the town was providing an essential service, she said.

   Real Estate Institute New Zealand South Canterbury spokesman Warwick Jones said his Timaru office had fielded ‘‘a few calls’’ from Christchurch people since last week.

   Mr Jones said he did not expect a sudden influx of interest because red• zone property owners had a lot to think about.

   ‘‘When you are tied up with a mortgage you’ve got to have those issues sorted, and you’ve got family, friends and jobs to think about,’’ Mr Jones said.

   Work would be the main considera• tion. He had already heard of cases of people wanting to move to Timaru going elsewhere because they had not been able to find a job, he said.

   In Timaru’s favour was the fact that $300,000 — the average registered value of properties in the red zone in Christchurch — would buy a ‘‘really nice’’ house in Timaru.

   Professionals Real Estate director Carl Slade said his Timaru office had received very few inquiries from Christ• church people since the announcement, but there had been a marked increase in calls from locals worried about an influx of Christchurch buyers pushing up prices.

   ‘‘It’s spurring the local buyers who have been sitting on their hands,’’ Mr Slade said.

   He was ‘‘100% sure’’ there would be an increase in activity, but it would take red•zone property owners months to sort through mortgages and insurance matters, he said.

   In its latest monthly property report for Timaru, his company estimated there were 349 houses being advertised for sale, while the median house price was $235,000.