- First-time buyers are driving up Christchurch auction activity, with increased competition and FOMO evident.
- Properties in the $700,000 to $850,000 range are popular, especially in central suburbs.
- Interest rate drops and affordable homes are attracting young buyers, leading to a buoyant market.
First-time buyers are piling into Christchurch auction rooms and bidding hard, and one mortgage expert believes the sudden rush to buy is evidence of a return of FOMO in the South Island city.
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At the end of last month, a three-bedroom, one-bathroom home on Leander Street, in Papanui, was snapped up by a property newbie for $730,000 – more than $100,000 above its RV.
Harcourts listing agent Connor Cleine said the auction result was “pretty phenomenal”.
He told OneRoof that more than three-quarters of the 14 registered bidders at the auction last week were first-time buyers.
“It kind of showed that first-home buyers are out there and ready to get to auction for the right properties.”
A three-bedroom home at 36 Aylesford Street, in St Albans, has been pitched to first-time buyers. Photo / Supplied
He said the drop in interest rates and the range of affordable homes in the city had helped.
Properties on full sites and in the central suburbs of St Albans, Mairehau, Papanui and Opawa, were popular because they were mostly in the $700,000 sweet spot for first-time buyers. “They are all reasonably affordable. Once you start jumping into Burnside, Cashmere, and Merivale, you are paying a premium.”
He said he had noticed an uptick in young buyers – Kiwis in their 20s – shifting to Christchurch to get a foot on the property ladder.
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He has just listed a modern three-bedroom, two-bathroom property at 36 Aylesford Street, in St Albans, which he expects will attract a lot of first-time buyer attention when it goes to auction on September 18.
The property, which has an RV of $620,000, sold last year for $740,000.
New Zealand Sotheby’s International Realty managing director Rosa Carter said homes in the sub-$800,000 price bracket were selling quickly.
She had about 70 groups through the first weekend of open homes for a three-bedroom bungalow on Howard Street, in Spreydon. “It was crazy numbers,” she said.
A three-bedroom home on Howard Street, in Spreydon, attracted 22 offers from mostly first-time buyers. Photo / Supplied
GV Financial director Gareth Veale has seen a 40% rise in first-home buyers. Photo / Supplied
The house sold last month for just over $700,000 – well above the RV of $590,000 – on the back of 22 offers from mostly first-time buyers.
Ray White Metro auction manager Richard Withy told OneRoof that Christchurch prices were starting to pick up on the back of increased first-time buyer activity.
“$850,000 and below is probably what we would term the first-home buyer market, and it is incredibly active.”
Withy said first-home buyers were finding increased competition in the auction rooms and that meant they had to be prepared to cover due diligence costs for multiple properties.
He said some agents and vendors were starting to provide buyers with independent building reports to help out.
“They now know that perhaps there are lots of good properties going to auction. Does it have a cost upfront? Yes, they are prepared to do it.”
GV Mortgages financial adviser Gareth Veale said FOMO was evident in Christchurch at that first-home buyer level.
He had seen a 40% annual increase in the number of first-home buyer clients settling on homes in the last three months. First-home buyers were often after three-bedroom, one-bathroom homes on full sites and usually had a budget of $750,000.
“The market is buoyant. All the signs of property prices going up again are there. Everyone is talking about it, so people don’t want to miss out on getting property at the right price.”
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