Quake catalyst for property 'boom': commentator

The Christchurch earthquake could prove to be the catalyst for a recovery in the property sector, but any upturn will be slow and patchy and homeowners should expect things to get worse before they get better.

Some real estate agents say they are struggling with up to a 30 per cent decline in sales since September 4, as dozens of quake damaged properties are pulled from the market creating uncertainty for buyers and a stagnant property market.

Christchurch real estate agent Tony Brazier of Brazier Property Investments said the investment market had taken a huge hit since the earthquake and since changes were announced to the way the sector was taxed.

Those companies without a rental division would be feeling the pinch, Brazier said.

"As we grew the property management side of the company we used the sales side as a prop. Now the property management is propping up the sales side."

To read the full NZ Herald article, click here

Posted: 28 Sep 2010

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