Confidence grows as TC3 sales pick up
Househunters are snapping up properties on technical category 3 land as Christchurch's earthquake recovery continues.
Canterbury Earthquake Recovery Authority (Cera) chief executive Roger Sutton this week told city councillors at a quake forum that TC3 land sales were starting to improve.
Real Estate Institute of New Zealand (REINZ) figures showing that TC3 properties accounted for nearly 17 per cent of all house sales in November, compared with 11.4 per cent during the first nine months of the year, were a "good sign" that people were more confident about the condition of the land, he said.
Cera has held sessions with bankers, property valuers and real estate figures to discuss its work on TC3 properties and ease their concerns about the land.
"I think that TC3 stuff is coming together, but for some people it's still going to take a bit of time to get comfortable with it," Sutton said.
REINZ Canterbury director Tony McPherson said the sales figures were a sign that people were more confident about buying TC3 properties.
He said many TC3 buyers were red-zone residents who wanted to live near their former homes and did not need to borrow money from banks.
Buyers understood there were "very good opportunities" in some TC3 areas, with properties in "more preferred" suburbs occasionally exceeding their valuations. "It's just a matter of education and people understanding that the [TC3] classification was quite broad-brush."
Valuer Bevan Fleming, of Valuation Solutions, said there was a "quite mixed" and "property-dependent" attitude to TC3 homes, depending on their location.
"In some areas, you'd go in and say, geez, it's definitely TC3 because the footpaths are knocked up and down. Then you go to other areas and it's not until you look it up on your system that you find out it's TC3."
While there was "a lot more understanding" about the condition of TC3 land, Fleming said, the policy of banks and insurers towards TC3 properties would have the most impact on their value to potential buyers.