Hill house prices jump in South

Christchurch’s hill suburbs have the fastest-rising house values in the city, as the area bounces back from earthquake damage.

May figures from valuation agency Quotable Value (QV) show home values in the Port Hills have jumped 3.2 per cent in the past three months. They now average $648,000.

Elsewhere in the city, average values fell slightly in the south and west, and rose less than one per cent in the eastern, central and northern suburbs.

QV’s national spokeswoman Andrea Rush said the increases in values were slowing in many parts of Christchurch. This was further evidence that with repairs and new building boosting supply, demand for homes was being met, she said.

The average home value in Christchurch is now $474,404, up 0.3 per cent in three months and 3.8 per cent higher than a year ago. In Selwyn and Waimakariri districts, values also rose slightly.

Christchurch QV spokesman Darryl Taggart said rising prices in the hill neighbourhoods were being driven by a market catch-up and auctions of homes in soughtafter hill locations were fetching good prices.

This followed a sales lull after the earthquakes ‘‘as buyers were hesitant to buy there due to the extent of damage in the area’’, he said. ‘‘Now that many hills homes have been extensively repaired and more homes are available for sale in the area, home values are now rising and good prices are being achieved.’’

Real estate agent Mark Lambie, of Ray White in Cashmere, said hill sales dropped for a long time after the earthquakes but were ‘‘bouncing back’’. Many of the homes coming onto the market now had been repaired, renovated, or rebuilt.

‘‘People are realising things are a lot better and want to be back on the hill. Once repairs are done you’ve got yourself a nice solid home with views.’’