We trust everyone has had a great Easter break. Always nice to get a couple of days off from the grind of day-to-day business. Bit hectic this year though with another long weekend coming up for ANZAC day.
Firstly, our big thank you to all of our new clients. Thank you for choosing Quinovic Merivale to manage your rental property. We have had a strong start over the first quarter of this year – in fact we were the leading office across the country for new business in March. Thank you also to those existing clients who recommended us. It is always very much appreciated.
However (there’s always a however), the market has changed quickly and it seems that we may be entering the usual slow period a little earlier this year. It may simply be the disruption of long weekends but demand from potential tenants seems to have fallen off over all property types. Hopefully this will lift given the relaxation at the border and with foreign students and specific skilled people now being allowed back in. Offset a little with a reported drop from New Zealanders seeking to return home permanently.
Our new business comes from various sources but recently one of the more obvious sources is from people who have been unable to sell their home. Recent changes to mortgage lending criteria had almost eliminated the first home buyer from the market. Government has announced that they will address those issues but the impact of that has yet to be felt in the market. First time owners only made up 21% of the sales in March. Investors remain a key component of the property market but even sales to them have fallen. We have been fortunate in that several of our major clients are continuing to grow their rental property portfolios – especially some from outside of Christchurch who see greater value for money and return on investment here than in other parts of the country. Some of these are focussing on new build 3-4 bedroom homes in areas such as Lincoln or Rolleston. Stand-alone homes continue to be the most sought after sector of the market though there is a move of interest back to inner city and fringe suburb apartments.