Subdivision developers in and around Christchurch are barely keeping pace with the demand for new sections as buyers move away from traditionally popular suburbs.
Sections in once highly priced hill suburbs are lingering on the market as buyers look for more greener fields in new developments on the north-western and southern city fringes and out to the Selwyn and Waimakariri districts.
One real estate agent described the buyers' interest in subdivisions as a "gold rush".
"Buyers seem to be rushing to sign contracts on sections as they become available," he said.
Sections in Selwyn and Waimakariri are selling quickly in line with the latest property valuation figures showing a continuing upward trend.
Nationwide, residential values rose further in June - up 7.6 per cent on the past year, with a 2.8 per cent increase in the last three months, according to Quotable Value.
Property values in Selwyn have increased 10.6 per cent in the year to June - slightly ahead of the Christchurch's 10.4 per cent increase - but QV said the Selwyn rate had slowed in the last three months.
QV Christchurch valuer Daryl Taggart said values were continuing to rise amid "more hype around the property market in the city particularly".
Section values were also reflected in the residential property statistics, with new developments catering for the demand around Christchurch.
"We haven't seen the same sort of growth in section values as we have in the residential property market," he said.
Knight Frank Christchurch director of valuation and research Will Blake said there was a "strong market" for all subdivisions on the southwest outskirts of the city since the earthquakes.
He said large tracts of land in southwest Christchurch had long been earmarked for future development.
"It's just that the future has arrived a lot quicker than anybody expected," Mr Blake said.
"Anybody with a section for sale or a subdivision is experiencing a pretty strong demand."
Average prices ranged between $175,000 and $225,000.
Simes Ltd managing director Peter Cook said the large Aidanfield development at Halswell had almost sold out.
The average price of lots when the 900-section development began some nine years ago was $92,000, compared with $251,000 now.
Ray White Rolleston real estate agent Brendan Shefford said the average price of a 750 sq m section prior to the earthquakes was between $145,000 and $160,000.
"Today you'll pay upwards of $170,000 for the same size section."
Subdivisions in Waimakariri District are selling out, but local real estate agents say the market has cooled over the winter.
The Oxford Estate development on the western fringe of Rangiora has completely sold out and few sections are left at The Oaks. The Arlington Park Estate is also understood to be almost sold out.
Property Brokers Rangiora North Canterbury area manager Hamish McLeod said his company was currently marketing two subdivisions in northwest Rangiora -Chesterfield Estate and Riverview Estate.
"Sales have been reasonably good, with 18 of 34 lots under contract at Riverview and 13 of 24 sections under contract at Chesterfield," Mr McLeod said.
The average price of a 600sq m to 800 sq m section at Riverview was between $173,000 and $189,000, with sections up to 900 sq m at Chesterfield selling for between $174,000 and $185,000.
Mr McLeod said buyers were "a real mix" of local people who had cashed up their properties in a sellers' market and were looking to build again, people relocating from Christchurch and "investors and spec builders".
"It's still a pretty buoyant market," he said.
Once sought-after and highly priced, sections on the Port Hills are staying on the market a lot longer these days, with some being offered well below their rateable value.
A 999 sq m section on St Remy Lane, Redcliffs, that was listed on Trade Me last October is still on the market at $255,000 - $57,000 shy of its RV.
An 1190 sq m section on Bridle Path Rd was listed last month with an asking price of $155,000 - $25,000 under its RV.
Vendors are selling properties with high rateable values "by negotiation".
Craig Prier, co-principal of Redcliffs real estate agency Ray White Prier Manson, which specialises in coastal and hillside properties, said there was a large number of hillside properties for sale before the earthquake but many houses occupying prime sites on the lower slopes had been demolished.
"Pre-quakes, vendors may have got a lot more money for them, but a number of people have decided not to go back," Mr Prier said.
"I guess they're a bargain, compared to what prices were pre-quake. Certainly the hillside and coastal areas are lagging behind properties for sale, say, in western Christchurch suburbs."
- Cullen Smith of The Star
