Sales of Christchurch City Green Zone properties are defying expectations that many would be unsalable for many years. Even those rated TC3 are selling.
An analysis of sales by real estate agents in Christchurch City from February 2012 – September 2012 by the Real Estate Institute (REINZ) shows that from a base of 514 sales in February, activity peaked in May with 629 sales and has then declined through to September which recorded just 417 sales.
Land in the green zone has been divided into three technical categories – TC1 (grey), TC2 (yellow) and TC3 (blue). TC3 properties, in particular, require site-specific geotechnical investigation and specific engineering foundation design.
An estimated 20 per cent of properties in Christchurch have been designated TC3. REINZ analysis shows that of the sales made in the eight months to the end of September, 11.4% were of TC3 properties.
The majority of TC3 homes that are being sold require work within the EQC cap of $100,000. Typically the buyers are red zoners seeking to stay in the same neighbourhood, first home buyers taking advantage of low interest rates to escape high rents or people relocating to Christchurch.
TC1 and TC2 properties are in greater demand. TC1 properties form 16.4% of all properties and accounted for 22.2% of all sales between February and September 2012, whereas TC2 properties form 57.7% of all properties and accounted for 66.3% of all sales between February and September 2012.
The median house price for Christchurch City properties was $345,000 in September 2012 compared with a median of $320,000 in September 2007.
