Desperate property owners offloading quake-damaged homes

A woman and her dog survey her quake-hit home in Christchurch. File photo / Brett Phibbs

Owners of damaged and unrepairable Canterbury homes are increasingly selling them on an "as is, where is" basis, a new property report says.

Property commentators say this reflects the desperation by some house owners to cut their losses and leave behind their damaged property at any cost.

Figures from the Real Estate Institute of New Zealand show house sales across the region in January rose by 2.4 per cent compared with January last year.

REINZ regional director Tony McPherson said selling properties on an "as is, where is" basis could become a more prominent feature in the market in the coming months.

Institute chief executive Helen O'Sullivan said prices for the properties could range from full value for lightly damaged properties to land value less the demolition costs for severely damaged dwellings.

"We will be taking a close interest in this trend as it develops."

Property commentator Olly Newland said the job was so huge in Christchurch to fix all the damaged properties that home owners could not wait any longer and were prepared to sell their homes for whatever they could get.

"How long are they expected to sit in these wrecks of houses or own them?

"It's obvious they're heading for the doors and getting out - their patience has run out."

It was not an indictment on the city, but an indication of the size of the job that was needed to be done, Mr Newland said.

Another property commentator Alistair Helm agreed, and said sellers were being pragmatic, realistic and up front about the situation.

"It's a market response to market needs."

Buyers of these properties would have a "risk profile", which allowed them to take on board the damaged homes, Mr Helm said.

"They think they can balance their risk and they can either get a house they've always wanted or they can potentially make some money renovating or rebuilding the house.

"The market decides there's an opportunity and some people see that opportunity."

There was risk in any housing decision, he said.

Christchurch City Council chairman of the housing committee Glenn Livingstone was not immediately available for comment.