Valuer warns of panic home buying

Friday 2 January 2004

Panic buying may cause the property market to overheat, a Christchurch valuer warns.

By The Landlord

Mark Shalders, a partner of valuation firm Bennett Partners Ltd, said prices had risen considerably in most areas of Christchurch over the past three months. He likened the prevailing mood to the period before the 1987 sharemarket crash.

"We are concerned about the sustainability of current price levels," Mr Shalders said.

"Firstly because in many areas an increase of 10 to 20 per cent has been experienced over a very short time-frame, which is unusual in the Christchurch property market, and secondly because of the motivation and decision-making process of many buyers in the market."

Many home buyers were adopting "a buy at any cost attitude" to property, Mr Shalders said.

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