Growth returns to normal in North Canterbury

Nicole Mathewson Reporter from Northern Outlook

From local democracy reporter David Hill:

North Canterbury has returned to ‘‘normal growth’’ after a two-year building boom, say local real estate agents.

Real estate agents said there was a noticeable easing off in property sales in the middle of last year, after two years of unprecedented growth.

This was reflected in the number of consents issued for new houses in Waimakariri falling back in December, which was the quietest month in years.

Consent numbers were also down in Kaikōura, but Hurunui was bucking the trend.

Hurunui District Council building and property manager Kerry Walsh said a record 197 consents for new houses were issued in 2022, up from 170 in 2021.

‘‘The major growth areas have been in Amberley and Hanmer Springs, along with the rural regions surrounding those areas.

‘‘We are expecting that the number of houses in both areas will remain steady over 2023.’’

The Waimakariri District Council granted 828 consents for new houses last year, compared to 928 in 2021 and less than 600 in 2020.

The biggest growth has been in the Townsend Fields (Rangiora), Silverstream (Kaiapoi) and Ravenswood (Woodend) sub-divisions and at Pegasus.

Harcourts sales consultant Christine Tallott said sales were down at Townsend Fields, but interest remained strong.

‘‘Buyers are a little bit nervous with the increase in costs to build and the delays.

‘‘But Rangiora has become a very sought after place to live.’’

Inquiries were strong for Townsend Fields stage four, which was yet to go on sale.

Ray White Rangiora manager Stuart Morris said the cost of living, rising interest rates, supply chain issues, economic uncertainty and a lack of available land were all having an impact.

He said there was less land available in Woodend and Kaiapoi, while Amberley’s new developments were waiting for titles to be issued.

‘‘But we have to remember we don’t normally see that level of building we have had in the last few years, so I think we are moving back to a more normal rate of growth.’’

Morris said first home buyers were starting to return, after a noticeable drop last year.

Bayleys Rangiora and Hanmer Springs manager Ross Ditmer said while residential sales had eased back, lifestyle block sales remained strong.

‘‘We are coming back to normal after the boom. If you go back two or three years ago, our sales in December were pretty comparable.’’

But he said the looming general election could create more uncertainty and lead to vendors and buyers being more hesitant.

Waimakariri District Council planning, regulation and environment general manager Tracy Tierney said consent applications in December were considerably lower than in previous years and January was following a similar pattern.

More than 560 amendments were made to approved building consents in 2022, ‘‘up three-fold compared to previous years’’.

‘‘This was mainly as a result of the need for product substitution during the build process,’’ she said.

‘‘Industry commentators are anticipating a slowdown in building activity this year from the highs of 2021 and 2022.’’

Mayor Dan Gordon said Waimakariri’s continued growth presented its challenges.

‘‘We are still one of the fastest growing areas in the country, so managing growth is still a priority and making sure we have the infrastructure in place.

‘‘We are working with our Greater Christchurch partners for growth opportunities and building the case for investment from central government.’’

Walsh said there were some major commercial developments consented in 2022 in the Hurunui.

These included the Amberley Country Estate retirement village, some major works at Rodin cars in Waiau and school building projects.

The Kaikōura District Council received 86 resource consent applications, compared to 84 in 2021.

It issued 134 building consents, including 29 for new houses, compared to 154 in 2021.