$1m suburb: Top dollar for homes in top spot
Christchurch’s dearest suburb has homes worth more than $1.1 million on average, more than four times the value of those in the cheapest suburb.
Kennedy’s Bush, on the Port Hills, has the highest value homes, while Phillipstown has the lowest, according to a new report from the Property Institute.
The institute, which represents the country’s valuers, has calculated the combined value of Christchurch homes at
$67 billion, a jump of 11 per cent from $60b three years ago.
In total, the value of New Zealanders’ homes is now close to $1 trillion, with almost half the value of the country’s homes inside Auckland city.
Ray White Cashmere real estate agent Mark Lambie, who has recently sold Kennedy’s Bush homes in the $1m-plus bracket, said the suburb’s views, attractive homes, and proximity to the city worked in its favour.
‘‘Buyers also like the walking and cycling tracks around the hills and Halswell Quarry. It’s like a bit of a retreat from the city, but close,’’ Lambie said.
Homes for sale now at the upper and newer end of Kennedy’s Bush are mostly large and modern, priced at $1m to $1.5m. Many of those lower down have bush-clad sections.
The second most valuable suburbs, according to the report, are Fendalton (average value $1m) Scarborough
($966,000), and Merivale ($785,000). Property information website homes.co.nz reported recently that the city’s priciest individual street was Heathfield Ave in Fendalton, followed by Mayfly Lane at Clearwater.
Across town in Phillipstown, the average home’s value is $271,000, according to the Property Institute report. This inner suburb has large numbers of multi-storey units and flats sitting among older cottages, a large proportion of rental homes, and inexpensive land.
The city’s next cheapest suburbs are Bexley ($275,000), and Aranui ($281,000).
The suburb with the fastest gain in average values over the three years was Edgeware (up 36 per cent), followed by Richmond (up 32 per cent). The most stable prices have been in Southshore and Islington.
The figures, released by the institute and property market data company Valocity, show New Zealand’s total housing stock is worth $942b, up from $668b in
2015.
This is the result of an increase in the number of homes as well as rising prices.
Auckland’s total housing stock is worth
$469b, a jump of over a third from 2015. The city’s dearest suburb is Herne Bay with an average value of $2.4m.
Compared with other main centres, Christchurch’s values are the slowest rising. Tauranga had the biggest increase.
The institute’s chief executive, Ashley Church, said the overall data was ‘‘both good and bad news’’ for the New Zealand housing market and wider economy.
Property was not considered part of the productive sector, but the figures showed how the ‘‘common wealth’’ of the nation had increased, he said. Positive benefits included lower interest rates and more assets for those entering retirement.
On the negative side, the rise in total property values made the country ‘‘more susceptible to a major hit on the economy’’ if interest rates rose fast, Church said.
‘‘It also means that the baseline cost for affordable housing programmes – such as Kiwibuild – will keep increasing as land and building costs increase. That’s a strong argument to get those houses built as quickly as possible’’.
Church said the Reserve Bank should speed up the removal of lending restrictions to ease pressure on first home buyers, and the Government should try to boost productivity and wages so ‘‘the average Kiwi isn’t permanently priced out of the housing market’’.