House Prices in Christchurch to Skyrocket

12 September 2011 - Which Way to Pay

House Prices in Christchurch to Skyrocket

Labour leader, Phil Goff, has warned Christchurch residents that house prices in the city are going to skyrocket. Homeowners in the city, which was badly hit by the earthquake in February, who may already have lost out through the buyout offer from the Government, are set to take another hit from the elevated prices.

Issues over the valuations that the Government has based offers to homeowners in red zones in cases where building cannot be rebuilt or insurers are reluctant to pay out have been raised by several Christchurch residents. Goff commented on the ‘mounting frustration’ he perceived in some homeowners on a visit to Christchurch last week.

Those badly affected by the earthquake were promised by the Government that no one would be worse off. Following undervaluation on some properties, many homeowners have lost huge amounts of equity and have been forced to accept under-offers from the Government. When they sell, the equity will be lost, and the price of new properties is hugely inflated by high demand.