Region’s big boom: House prices rising alongside population

ON SALE: This is what $595,000 gets you in Darfield. The 254sqm Horndon St house sits on a 0.57 ha property.

Houses in the district hit a record median price of $595,000 last month. Emily O’Connell investigates why this has happened and what house hunters can get for their money.

Not only is the district’s population growing, but so is its house prices.

Figures released by the Real Estate Institute of New Zealand last week showed the median house price in the district had risen from $580,000 in June last year to $595,000 in June this year.

About 59,000 people currently live in the district and this number is expected to grow to 79,200 by 2028.

Four Seasons principal officer James Twiss, who is opening a Harcourts office in Lincoln in September, put June’s median house price of $595,000 mostly down to new builds.

“You’ll find there’s been a lot of new housing stocks going up
. . . even though it seems high, for new properties, it still suggests its value for what you can get for that price verses the city,” he said.

Seventy-five houses were sold in the district in June, 18 less than the month before. However, it was an increase from June last year when just 43 houses were sold.

The median days to sell a house in the district last month was 32, this has increased from June last year, where it was 17.

When compared to other Canterbury districts, Selwyn had the second highest median house price last month.

The Mackenzie District had the highest median house price last month at $597,000.

Ashburton sat at $327,000, Christchurch city $430,000 and Waimakariri, $441,000.

In Darfield, house-hunters can purchase a 254 sq m four-bedroom, two-bathroom house, with a 0.57ha property for $595,000. The median house price in Darfield last month was $399,000.

In Rolleston, house-hunters will get a smaller 204 sq m four-bedroom, two-bathroom house, on a 668 sq m property for the same price. The median house price in Rolleston last month was $560,000.

In Lincoln, people wanting to buy a house can get a 192 sq m four-bedroom, two-bathroom house on a 600 sq m property for $593,771. The median house price in Lincoln last month was $610,000.

In Castle Hill, a 125 sq m three-bedroom, two-bathroom house on a 588 sq m property is priced at $595,000. The median house price in Castle Hill was unavailable as there was only one sale in the village in the past year.

Mr Twiss said they made the decision to open an office in Lincoln following district council statistics which showed the predicted growth in the area.

“Seven thousand five hundred people with a reasonably active real estate market was an obvious place to put an office, but the fact there’s potential growth in there also was something that sort of interested us,” he said.

Mr Twiss said most house-hunters in Lincoln tend to be families who are looking for
four-bedroom, two-bathroom houses.

He believes house prices in the district will “creek slightly without jumping like they have in the last five years.”

REINZ regional director Jim Davis said the Canterbury market looks to be stable for the next few months.

“It will likely go towards an even more active spring market with buyer inquiry continuing to increase. Hopefully listing numbers will remain strong throughout the rest of winter as well,” he said.

FAst facts

•Last month the median house price across the country rose by 5.7 per cent to a record equal median of $560,000 up from $530,000 the same time last year.

•The New Zealand excluding Auckland median house price remained at a record-equalling figure of $460,000 in June, up 7 per cent on June 2017.

•Auckland’s median house price decreased by 0.7 per cent year-on-year to $850,000 down from $856,000 last year.

•The number of properties sold across the country decreased by 1.6 per cent to 6034, down from 6131 in June 2017.