Renewed interest in Christchurch bare land
The 2813sq m former Christchurch site of the NZ Institute of Management on the corner of Kilmore and Madras Streets, recently sold for $2,225,000.
After a lull in activity over the past two years, investors are showing growing interest in bare land suitable for commercial and residential developments within the area surrounded by Christchurch’s four avenues.
The four avenues marking the rectangular boundary of the central city are Moorhouse Avenue, Fitzgerald Avenue, Bealey Avenue and Deans Avenue.
Courtney Doig, an investment sales specialist with Colliers International in Christchurch, says there was a flurry of land sales after the earthquakes and subsequently activity plateaued with fewer sales - until this year.
“Buyers are motivated by a variety of different reasons – some are taking the opportunity to land bank while others have specific projects in mind. There’s no doubt that, as the CBD core continues to take shape, investors have increased confidence in land within the four avenues.
“For instance, the site of the former NZ Institute of Management head office on the corner of Kilmore and Madras Streets was recently sold at auction. The 2813sq m bare land fetched $2,225,000 with two bidders vying for the property.”
Another land site of 8842sq m adjoining McLeans Mansion at 888 Colombo St has changed hands for $5.3 million and is earmarked in the long term for residential townhouses. A neighbouring smaller parcel of 427sq m was subsequently sold at auction for $470,000.
Paul Vining, Colliers’ investment sales specialist, says the inner city sites are proving popular because of the increase in city facilities that makes it possible for investors to have a clearer idea of the best use for land on offer.
“The success of bare land sales within the four avenues is likely to fuel interest in two other sites Colliers is taking to auction on September 22,” Vining says.
These are 12-16 Eaton Place, behind Lone Star off Manchester St, with the parcel in four titles covering 1688sq m; and 404 Barbadoes St where 2200sq m of vacant land was previously occupied by Unit 6 of 1980s-designed Amuri Park office complex.