Christchurch Residential Property Values due to Earthquakes

So we all know the main factor for feeding property prices is supply and demand. If there is more demand than supply, then prices will rise. This is why population increases will often increase property prices too.

So now due to so many houses no long habitable in the Christchurch area, should this mean to say that the remaining houses are now of a higher value?

Added to this replacement costs are going to be huge at this stage, not to mention the wait.

So what sort of price should you expect to buy a house for in Christchurch these days? Are we looking 10-15% above RV? How will different suburbs be affected?

The obvious point is that much supply has been taken out of the equation. All things being equal, prices should go sustainably upwards.

But, things are not equal, if you believe that much demand has also been taken out of the equation, as I do.

The questions are (a) how much demand? (b) for how long? (I don't have the answers and I'm not intending to buy in Chch)

i don't think Rateble value will have anything to do with setting price as we have had no new valuations since 2007 but i can tell you that house prices in the south west are selling well above that and increasing by the day.

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Originally Posted by Atlantis

So we all know the main factor for feeding property prices is supply and demand. If there is more demand than supply, then prices will rise. This is why population increases will often increase property prices too.

So now due to so many houses no long habitable in the Christchurch area, should this mean to say that the remaining houses are now of a higher value?

Added to this replacement costs are going to be huge at this stage, not to mention the wait.

So what sort of price should you expect to buy a house for in Christchurch these days? Are we looking 10-15% above RV? How will different suburbs be affected?

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Never rely on the govt. valn for house prices. At best it's a rough guide to market value, but it's intent is for statistics, rates etc. - not for sale/purchase value, although in some areas, at some times, it's reasonably close. Other times they can be miles off.

I would think you would have to be relatively thick skinned to invest in Christchurch ATM,at least until this whole thing becomes a reasonable distant memory.Alot of people seem to want out these days.
But having said that,I suppose these sort of things can represent a good buying opportunity,especially in the stable areas, untouched by the quakes.
Untouched areas in Christchurch could be a bit like waterfrount in Auckland in terms of scarcity.
I suppose the many people who love Christchurch would like nothing better than to stay in their city,but without the incredible worry attached to the most affected areas.

i must be thick skinned have purchased 2 property's in the last 12 month's and a happy investor indeed.
I would also add that the investing oppertunity's in christchurch will be a once in a lifetime event (i hope)so sit on
your hands if you will and preach doom and gloom some of us will see it in a different light and take the gamble
and only time will tell who was right.