High quality, well-located property is still high on the agenda for investors in the Christchurch market.
This is highlighted by the sale of a high profile corner site in Riccarton, which has just changed hands for $2 million, representing a yield of 5.4 per cent.
Dick Thomas, a commercial specialist with Colliers International in Christchurch, said the quick sale of the property, on the corner of Division St and Riccarton Rd, epitomised the current market.
“The fundamentals of this property were so sound – great location, 53 years and not a day of vacancy, and a location second to none.
“There’s a lot of wealth in Canterbury and many people are still looking for an investment home. Buyers are keen on well-located, bottom-drawer investment properties.
“But, given the more cautious economic outlook nationally, they are being more discerning and there is a bit of a gap emerging between top tier properties, which are likely to sell readily and those that make take a little longer.
“The tougher funding climate means buyers are really penalising investments that have vacancies.”
Thomas said there was a real appetite for property under $3 million, with family trusts active in that market.
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