Property prices to rise in east

Don’t expect bargain basement house prices in the eastern suburbs because of earthquake damage.

That’s the tip from people who have properties up for sale, and one of the city’s top real estate agents.  

People selling houses spoken to by the News Advertiser say they won’t budge on their asking price as they believe demand for properties in the area will exceed supply, due to thousands being listed red.  

But insurance issues continue to stall and hinder sales. Some insurance companies are refusing to insure homes that are on the market, frustrating sellers.  

Ron McCandlish, 66, is asking for $350,000 for his two-bedroom, orange-zoned Lake Terrace Rd home, in Burwood – about $30,000 more than the GV.  

Mr McCandlish says the price is fair. “There’s going to be a scarcity of properties on this side of town. I’m not moving on that [price] very much,” he said.   He has received “quite a bit of interest”.   He said one woman in particular wanted to buy the property as she had lived in the area 35 years and wanted to stay. But getting insurance was an issue.  

He also felt a lot of people would be priced out of purchasing properties in the north-west of the city.   “It’s a price range a lot of people can afford [here],” Mr Candlish said.  

Dawn Bone, 56, is also asking more than the GV for her green-zoned Wainoni Rd home, in Aranui. Mrs Bone, who plans on returning to the UK, has listed the three-bedroom property asking for offers over $225,000 – about $10,000 more than the GV. She too isn’t wanting to drop the price, expecting an increase in demand from local red-zone residents wanting to stay in the area. But unlike Mr McCandlish she hasn’t had much interest.  

Her home is next to the infamous ‘house of horrors’ property where Tisha Lowry and Rebecca Somerville were murdered, and then buried under the floorboards by their killer – Mrs Somerville’s husband Jason Somerville.    

Mrs Bone believed the history of the empty site next door may be a “deterrent” to some buyers.   But some sellers are willing to take below GV.  

Cindy Joyce, 28, and her partner Dave Yates, 44, say they are willing to accept $80,000 less than the $380,000 GV for their green-zone Bower Ave home, in North New Brighton.   T

he couple, who plan to move to Melbourne to work, said they had received “lots of interest”.   “There’s about four people that want it. But it’s the insurance side of thing that’s stopping people buying. I would’ve been better in the red-zone,” Mr Yates said.    

Harcourts Grenadier city manager Cedric King believed property prices in the eastern suburbs would increase.   “The reality is the prices are lifting and the cheaper areas will be dragged along with that. There will be people who want to stay there, that will lead to an increase in demand.

  “It’s basic supply and demand. Clearly if demand out reaches supply prices will increase,” he said.   “People will come out of the red-zone and want to stay in the eastern side of town. There’s certainly not a mass exodus of people leaving the eastern suburbs.”

He said the GV was a reasonable guideline for properties in the eastern suburbs although some properties were selling for more, others less.  

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