TC3 homes stigma in decline - industry

LIZ MCDONALD
Last updated 05:00 17/06/2013

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Homes on land zoned TC3 are getting easier to sell and prices have recovered, those working in the market say.

However, buyers are still shunning bare sections in the most damage-vulnerable category.

Real estate agent David Blackwell, of Total Realty, said the stigma of TC3 classification in and around Christchurch was lessening.

"For a while you could hardly sell a house on TC3 - that's not the case now. Some of the most astute buyers are realising that TC3 is not a reason not to buy."

Technical category 3 land is considered the most badly damaged or at risk of future damage of all green-zoned land in Canterbury.

Houses being built, or needing structural repairs, in TC3 were subject to stricter building requirements than the rest of the green zone.

As more earthquake damage was assessed and repaired, Blackwell said, the TC3-zoning was becoming less of an issue for buyers, and the price difference with other green zone properties was also narrowing.

However, there was still "some resistance" and some buyers would not even consider TC3 homes, especially in badly hit neighbourhoods.

Blackwell said the zonings seemed arbitrary and buyers needed to look at each property individually.

"On the fringes of the zones some of the TC3 land is the same as TC2."

A look at the real estate advertisements indicates the new level of confidence.

A modern Parklands home on TC3 land with a rating value (RV) of $313,000 and an asking price of $325,000 is under offer after only a few weeks on the market.

A Merivale townhouse owner, also on TC3 land, is confidently asking $490,000 for his home with a $392,000 RV.

Real Institute spokesman Tony McPherson said agents were no longer finding "any significant gap" in price between categories.

"Buyers aren't fazed by TC3 now, its generally accepted its just about foundation requirements."

A report from real estate company Knight Frank last year revealed "a significant recovery of values" of TC3 homes during the year, and the firm's head valuer, Will Blake, said the trend had continued since.

"The market is very strong and it keeps growing."

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- The Press

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