Few comparable homes available for Kaiapoi red zoners

The government decision today to purchase a further 940 earthquake-damaged properties at Kaiapoi north of Christchurch will add to the scramble for properties.

The rateable value of Kaiapoi and Kairaki properties ranges mostly between about $230,000 and $350,000, meaning those residents are unlikely to be able to afford comparable new properties.

And the relatively small number of available existing properties means Kaiapoi  residents will either have to move away if they can find cheap properties, or be forced into rental accommodation.

The 940 Kaiapoi homes adds to the 5100 Christchurch homes that the government will buy.

The nearest subdivision to Kaiapoi is Pegasus Town but prices for the latest stage of 47 sections range from $195,000 for around 500sq m to $245,000 for 812sq m. Building packages vary but most promotions suggest more than $250,000 for 200sq m homes.

The prices at Pegasus appear to have escalated since June according to the price range provided to NBR at that time by general manager Marc Bretherton when he said prices ranged from $127,000 for a 450sq m section to $159,000 for a section of about 650sq m.

A number of proposed sub divisions are at planning stages but are caught up in protracted Environment Court zoning battles. The city and regional planners have conceded some ground with particular developers but others who have missed out are expected to appeal when final decisions are signed off.

One of the lawyers involved told NBR that it could more than a year before the court issues are settled.

Although the Christchurch City Council claims there are 17,000 sections in the pipeline, enquiries with agencies suggests closer to around 3000 available with titles and services.

The government has so far declined to intervene in the Canterbury property market to make more land available. City and regional planners have for years opposed new developments, thereby driving up the scarcity values to make Christchurch the second most unaffordable city for homes after Auckland.

The Canterbury Earthquake Recovery Authority is privately calling for submissions about the appropriateness of intervening in the market.