Christchurch property market unaffected by Government shake-up

This property at 12 Luxton Place, Mt Pleasant, sold at auction on Wednesday. Photo / Harcourts

The Christchurch housing market appears to be unaffected by the Government's shake-up despite a subdued mood at other auctions around the country.

Out of the 16 homes that went to auction under Harcourts Holmwood yesterday, just two did not sell.

OneRoof reported the mood was subdued at New Zealand's largest auction on Wednesday, as buyers and sellers came to terms with the Government's announcement.

A woman who had come to watch the auctions said she had expected more bidding while a buyer who missed out on a home had harsh words when asked about the planned changes, announced by the Prime Minister on Tuesday.

Looking to buy a home for his son, the unsuccessful buyer told OneRoof: "People in the room certainly look more cautious. They [the Government] are putting the knife into New Zealanders."

Christchurch is one of the few markets in New Zealand where the house price threshold won't shift under the Government's first-home buyers scheme.

Caps in the Garden City will stay at $500,000 for an existing home and $550,000 for a new build.

Outside Christchurch, caps have soared by up to $100,000.

Ray White Ferrymead Branch Manager James Shepherd told the Herald they are seeing outstanding results in Christchurch at the moment.

It comes after a great week for the company at auctions last week, when 20 out of 21 of their Christchurch properties sold.

A property at 78 Wiggins St in Sumner did not sell at auction on Wednesday.

The three-bedroom, one-bathroom house has a rateable value of $810,000.

Shepherd did not attribute the lack of success at auction on the Government's shake-up but instead a "few things that did not go quite right."

"We are still expecting the property to be sold promptly."