Property market shows steady growth

19:37, May 10 2012

There has been steady growth in the Timaru real estate market, the latest Real Estate Institute of New Zealand figures show.

There were 55 residential sales in Timaru in April, fetching a median price of $240,000, up 2.9 per cent on the previous month. It is an $11,000 jump on April 2011, when the median price in Timaru was $229,000.

It follows a "boom-time" record of 71 house sales in March.

Timaru real estate agency director Carl Slade said although sales were down in April on the previous month, the market was still showing healthy signs.

"Because of the small size of our market, our median tends to fluctuate substantially. Therefore the long-term trend line tends to be a more helpful indication of what prices are doing.

"Although this is a decrease from the record 71 in March, it is a healthy jump from the 43 sales recorded in April last year."


He said in the last 12 months there were 607 residential house sales, an average of 50 per month, compared with 467 sales for the same period last year.

"This continues to support our view that the volume of sales is steadily increasing back to more sustainable levels." To put the figures into perspective, the average number of sales per month for the previous 17 years was 60, he said.

Nationally, there were 739 dwellings sold by auction in April, making up 13 per cent of all sales, up from 555 sales in April 2011.


Drizzly weather did not deter bidders at a lunchtime auction on Te Weka St.

Houses in one of Timaru's premier streets do not come up for sale often – the property on offer last sold in 1990 for $89,000.

The two-bedroom "townhouse alternative" sold yesterday for $355,000.

Location, however, makes a difference, with Ashbury Park across the road and the new CBay Aquatic Centre around the corner. The auction attracted about 20 people who gathered in the lounge as bidding got under way.

A couple of bidders gave it some serious attention.

Opening at $300,000, bids climbed in $10,000 increments until bidding paused at $350,000.

The auctioneer called for $2500 bids before calling a recess at $355,000.

Five minutes later and the announcement came the house was on the market, with invitations of $1000 bids.

A couple of people stirred and made signals to others across the floor, but there was no movement on the price. The hammer fell and it was sold.

The roughcast bungalow has a rateable value of $330,000.

The Timaru Herald