Home hunt in Christchurch

Accommodation for workers is in hot demand

PRICES OF accommodation properties near Christchurch are climbing as investors and building companies seek accommodation for construction workers.

The latest property to be snapped up by a building company looking to house its workers is the Riccarton Holiday Park, a camp ground and cabin complex at Sockburn in Christchurch.

Peter Harris, of Bayleys Real Estate, who handled the sale, said the property had been purchased by a company involved in the rebuilding of Christchurch and it was looking to house about 200 of its workers on the site.

Harris said he could not reveal the identity of the buyer or the sale price because the deal had not yet settled, however, speculation doing the rounds on Christchurch grapevine is that the property has sold for more than $6 million.

If that is correct it would be about five times the property’s council valuation of $1.3m.

Harris, who specialises in accommodation and hospitality properties, said demand for them in Canterbury was stronger than he had ever experienced and was outstripping supply. That was driving up prices.

There were two main groups of potential buyers, construction companies looking to house their workers during the Christchurch rebuild and investors looking for reliable cashflows.

Potential buyers were interested in motels, boarding houses,