TelferYoung (Canterbury) Limited
Canterbury Newsletter - October 2007
17 October 2007
Welcome to our Spring Edition of the TelferYoung (Canterbury) Ltd newsletter.
Other than our World Cup demise, the biggest issue today on every one’s lips is what is the residential property market going to do? Will it fall and if so for how long, will it stablilise, is it a short term hiccup or are we in for a 1991 style slump?Our opinion based on recent happenings in the Christchurch residential market is that reduced sales volumes are with us for the short to medium term. We don’t expect a collapse or even a significant fall, but we do expect that prices/values will stabilise. There may however be isolated situations where highly leveraged property owners may be forced to sell at reduced prices. As usual well presented properties in good localities will continue to be in demand. In our opinion long term prospects are quite good given the basically sound economy, unemployment remaining low and strong world commodity prices for much of our agricultural exports.Auction Results
We have seen many properties passed in at auction. The drop in sales at auction appears to be across all price ranges. It is a further illustration of the market slowing. The auction process does create significant market exposure for a property however with a falling success rate vendors may begin to question auctioning their property, especially with the costs involved.New President – The Property Institute of New Zealand
Our own Chris Stanley has recently been elected to the position of National President for the Property Institute of New Zealand. This appointment is just reward for his involvement in the administration and promotion of the profession over many years. Chris has considerable experience as an expert witness, an arbitrator and in mediating disputes. He is also a member of the Land Valuation Tribunal and acts as a Property Advisor to many national clients and local investors. We congratulate Chris on this achievement and wish him well for his two year term in office.
Coastal Occupation Charges
Section 64A of the Resource Management Act requires Regional Councils to consider whether or not to include in their Regional Plans a Coastal Occupation Charging regime to apply to all persons who occupy any public part of the Coastal Marine Area.The Coastal Marine Area is defined as all the land and water on the seaward side of the line of mean high water springs out to a distance of 12 nautical miles. Typically occupations within this area would include activities/structures such as:
- Private jetties
- Boat ramps
- Boat moorings
- Marinas
- Boat sheds
- Marine farms
- Commercial ports
Ecan have undertaken much work on establishing a robust charging regime for these activities. However with the current provisions of the Resource Management Act this would be difficult to implement.
Although it was intended that any change to the Regional Coastal Environment Plan after 1 July 2007 would include a statement or regime on these charges, Ecan have decided that charges would not be implemented until there is an amendment to the Resource Management Act providing clarification.
Other than continued uncertainty for coastal occupiers Ecan believe there are no significant negative consequences from delaying work on preparing a Coastal Occupation Charge for Canterbury.
Added Value
TelferYoung prides itself on providing sound valuation advice on all real estate matters.
We have the necessary experience and knowledge in all the multi faceted work we undertake for our clients.
Our aim is to provide “added value” to our clients though their experience with TelferYoung.
This may present itself in many varied situations from providing consultative advice, feasibility studies, litigation and arbitration advice through to property related taxation advice in relation to trusts, GST and land rezoning tax issues.
We can establish depreciable values in commercial and residential investment properties to maximise available cashflow.
We can assist in providing curtilage apportionments to establish taxation positions, and advise on taxation planning issues in relation to redevelopment or rezoning of land.
Obtaining sound professional advice is the cornerstone of property decision making. TelferYoung’s knowledge and experience assists individuals, corporate clients, solicitors and accountants to maximise these decisions.
It has been our experience that the sooner we are involved in any property transaction or development, the greater “added value” we can provide.
Elderly Persons Housing (EPH)
A relatively recent arrival on the Christchurch scene has been the EPH unit. Christchurch City Council rules provide for units of up to 80m2 in living zoned areas to be occupied by “Elderly Persons”. The definition of an “Elderly Person” or to qualify to purchase or occupy an EPH unit is defined as being a “person over the age of 60 or a person who qualifies for a permanent invalid benefit on health grounds”.
There has been a proliferation of these units in Christchurch over the last three years. Developers find them attractive as although the building must comply with the usual Christchurch City Council requirements relative to setbacks, recession planes, etc, there is no minimum area for the site and the minimum outdoor living area is reduced to 30m2 from 75m2 in the case of Living 1 zone and 50m2 in regard to Living 2 zones.
The existing floor area limit of 80m2 including a single garage is not appealing to the majority of potential buyers as in effect it provides only one bedroom plus a study with minimal living area. Enquiries at Christchurch City Council recently indicate that Resource Consents have been granted for EPH units up to 100m2 which provides a much more saleable unit, particularly in areas where land values are quite high.
We believe that the Christchurch City Council are investigating changes in the scheme, not only to provide larger EPH units but also to improve design in relation to the elderly and invalids, typically in relation to doorway widths, bench heights, accessibility, etc. We believe the review is well overdue however it may well be that “the horse has already bolted” as many of the older style units prove unpopular and are harder to sell.
Back issues of the newsletter can be obtained from TelferYoung (Canterbury) Ltd
Level 4, Anthony Harper Building,
47 Cathedral Square,
PO Box 2532,
Christchurch,
New Zealand.
Telephone: 03 379 7960,
Facsimile: 03 379 4325
Email: telferyoung@canterbury.telferyoung.com
+ John Ryan + John Tappenden + Mark Dunbar + Chris Stanley + Mark Beatson + Ian Telfer + Victoria Murdoch + Damian Kennedy
Opinions expressed in this newsletter are of a general nature and should be used as a guide only. TelferYoung should be consulted before acting on this information.