North Canterbury’s building boom slows, but growth expected to ‘crank up’ this year

Nicole Mathewson Reporter from Northern Outlook

By David Hill, Local Democracy Reporter

Building consents are down as the building boom slows in North Canterbury, but real estate agents say there are signs of growth.

Consents issued for new houses dropped last year across the three North Canterbury councils, but the region's authorities are still planning for growth as the population grows.

Local real estate agents also said there were signs the region was coming out of recession, with some confidence returning.

Across Waimakariri, Hurunui and Kaikōura, consents for new houses issued last year were down compared to 2022, but continued to be high.

Bayleys Rangiora and Hanmer Springs manager Ross Ditmer predicted a bright outlook, with new legislation and interest rates beginning to drop.

‘‘There is still interest from outside the region, with the drift south continuing as North Islanders find it is affordable to live here and there is a lot interest in lifestyle properties.’’

He said house prices were slightly cheaper in Waimakariri compared to Christchurch, with the ‘‘laid back’’ lifestyle an attraction.

Ray White Rangiora manager Stuart Morris said growth in Rangiora had been slow due to a lack of available land, but he expected it to ‘‘crank up’’ this year.

‘‘Bellgrove and Townsend Fields (Rangiora) are firing up, while Kaiapoi still has plenty of gas in the tank.’’

Morris predicted ‘‘a steady as she goes’’ market this year, as the economy recovered.

The average house price in the Waimakariri district was $650,000 to $700,000, with two bedroom units selling for as low as $400,000 and three bedroom homes selling for $500,000-plus.

At the top end, new builds could fetch as much as $900,000 to $1.2 million.

Waimakariri District Council planning, regulation and environment general manager Kelly LaValley said 762 consents were issued for new houses last year, down from 836 in 2022 and 928 in 2021.

A new KFC has been consented for Kaiapoi, north of the river, while the council has received a building consent for the proposed Rangiora Medical Centre, LaValley said.

Building consents have also been received for the new business hub in Southbrook, Rangiora, along with a consent for a storage facility.

While the consent numbers were down, it kept pace with Stats NZ’s high growth scenario, which could see the district’s population grow from 70,000 to 100,000 over the next 30 years.

The Hurunui District Council issued 482 consents last year (including 142 for new homes), compared to 614 (196 for new homes) the year before, building and property manager Kerry Walsh said.

Amberley was leading the way with 87 consents for new houses issued last year, down from 122 in 2022.

In Hanmer Springs, there were 18 consents issued for new houses last year, half of the 34 consents in 2022.

The largest project is the Amberley Country Estate Retirement Village.

The Kaikōura District Council issued 140 consents last year, down from 165 last year.

The largest project was the Vicarage Views subdivision.

Nearly half of Waimakariri’s consents were issued for Woodend (354), thanks largely to the booming Ravenswood subdivision.

Ravenswood sales manager Miranda Laney said the bulk of those consents were for stage 5, which were pre-sold two years ago.

She said the final stage (stage 6) is now selling, with just over 200 sections remaining to be sold.

Just over half of the 1500 sections in the sub-division now have houses on them.

Sections sold for between $350,000 to $450,000, while a house and land package sold for between $650,000 to $750,000 for a three-bedroom house.

The Ravenswood Central retail area of 20 hectares was filling up fast, with Harvey Norman expected to open later this year, joining five restaurants, a dental hygienist, a chemist, fitness centre, bottle store and two service stations.

■ LDR is local body journalism co-funded by RNZ and NZ On Air.