Rental demand boosts market

18:48, Dec 11 2012
RENTAL PROPERTIES: Making sure they're safe and sound is good business practice.

There is renewed buoyancy in the South Canterbury housing market, the latest real estate figures show.

More properties are selling faster and for a higher value. And it seems the boom is set to continue.

There were 76 properties sold in Timaru in November at a median value of $239,000 - $13,000 up on the previous month.

The properties took an average of 29 days to sell, according to the Institute of New Zealand's (Reinz) November figures.

A further 45 properties in South Canterbury sold at a median value of $215,000 - the same value as the previous month. The properties took 58 days to sell.

South Canterbury's Reinz district forum leader Warwick Jones said sales were "significantly up" on previous months, "which is an indication of buyer activity".


"There's quite a consistent amount of buyers in all factors of the market at the moment.

"There's first home buyers, investors, developers and . . . there's other people selling property and maybe buying something not as big, and reducing their debt, but also people buying investment property."

Buyers were both local and out-of-town, he said.

The rental market was also buoyant. "There is a big demand. Things are really ticking over and Timaru is really humming at the moment."

Another significant shift was the decrease in days to sell.

"The figures are significantly lower than previous months. It's normally around 40 to 45 a month.

He was confident the buoyancy was set to continue.

Quotable Value figures released yesterday confirmed the boost in the Timaru property market. They showed in the Timaru district the average sale price increased by 6.4 per cent to $261,116 in November.

Things were slower in the Mackenzie district where the average sale price decreased 1 per cent to $265,738, and in the Waimate district where the average sale price decreased 0.9 per cent to $173,549.

The Timaru Herald