Timaru house prices on the rise

17:00, Apr 11 2014

The median house price in Timaru has increased almost $30,000 in the past year.

The value of residential property in Timaru has increased steadily, according to the latest Real Estate Institute of New Zealand (REINZ) figures, from a median price of $257,000 in March 2013 to $285,000 in March 2014.

During March, 59 Timaru homes were sold, being on the market for an average of 33 days.

Sale volumes across the Canterbury/Westland region rose by 11.3 per cent in March, with a notable 20 per cent lift in Timaru.

Tony McPherson, regional director for region 4 - covering the Nelson, Marlborough, Canterbury and Westland zone - said there had been an upward trend in residential property prices and sales in Timaru.

"It seems that Timaru certainly benefited from the Christchurch events. Timaru also has a very strong rural economy."


However there was a slight drop in the median price from February to March 2014, according to REINZ figures.

"You do get fluctuations within a month. Quite often, if a certain segment of the property market is affected, it can affect the price. But it is hard to establish a trend by just looking at a month's figures," McPherson said.

The national sales distribution for the price band of under $400,000 rose from 2900 in February 2014 to 3155 in March 2014.

In a press release, Property Brokers South Canterbury manager Hamish Niles said the property market in South Canterbury and Waitaki was very positive.

"In general, South Canterbury is tracking well and there is also a strong demand for rentals, which is a reflection of the development at Clandeboye and PrimePort, Timaru."

Timaru was poised for interesting times, said South Canterbury spokesman for REINZ Warwick Jones.

"Consumer confidence is growing, even though the recent Government regulation of [limiting the number of loans to lenders with deposits under 20 per cent] slowed down the market slightly."

Buyer confidence was also on the rise in spite of an increase in interest rates, contrary to the normal reaction of it slowing down residential property sales, he said.

Nationwide, the latest property value index shows that residential values for February rose 9.3 per cent over the past year and 1.8 per cent over the past three months.

The Timaru Herald