Karamu, Riccarton Park, early stage, Off the plan townhouses
Karamu is a unique and first of its kind investment opportunity in Christchurch. Developed on the edge of the oldest racecourse in New Zealand on reserve land, it has a stunning a backdrop for tenants and owner occupiers alike. Built by a highly successful and respected building company thats operated in Christchurch for more than 50 years, this boutique project is in stage 1 of a 5 stage development.
Karamu at Riccarton Park is a $300 million, 600-home development at a Christchurch racecourse. The land, situated around the outside of the Riccarton Race track, has been developed by the Christchurch Racecourse Reserve Trustees and Ngai Tahu Property. This development, alongside those at Awatea, and Colombo and Welles streets, is the final phase of the Government's housing response to the Canterbury earthquakes.
It is a 33 hectare development of land predominantly on the western fringes of the Riccarton Racecourse site as a new residential subdivision. Riccarton Racecourse is the oldest racecourse in New Zealand and is significantly bigger than either the Ellerslie Racecourse in Auckland or the Trentham racecourse in Wellington. It hosts 22 race meetings a year, including the New Zealand Cup during Cup and Show Week.
The prices for these turnkey townhouse and land packages have been discounted $17,000 - $32,000 by the developer due to pressing pre-sales deadlines they need to hit.
Key investment results
Release date: June 2019
Settlement date: March 2020
Stock quantity: 16
Timeframe: 9 months
Equity gain through discount at purchase and value growth before settlement
Turn-key purchase, which keeps finance simple
Off-the-plan 2 & 3 bedroom townhouses
Early stage / discounted investment
2 & 3 bedroom purchase prices: $518k - $543k
Market valuations: $545k - $560k
Deal profit: $17k - $32k
Deal profit: 3-5% at purchase plus market growth before settlement
56% of the Russley dwellings are occupied by 1 to 2 people. There is very little in the way of 2 bedroom stock on the market for sale or rent in Russley and this unique racetrack location, surrounded by schools, cafes, restaurants and bus routes is likely to see excellent rental demand for these new properties from tenants according to local property managers.
When it comes to resale these 2 and 3 bedroom townhouses on 211-331 sqm sections, will appeal to first home buyers, young families and professional couples. With 43% of households in Russley earning more than $70,000 p.a. (26% above $100,000) this is a quality demographic with 39% of residents in professional or management roles.
Investing in stage 1 of a multi-stage (5) development often sees higher prices set in later stages of release by the developers as the location gets established, extra amenities appear and other tenants/buyers confidently follow the early stage purchasers, albeit at higher prices. These types of buyers usually purchase when they can ‘see’ a property vs making that decision ‘off the plan’. We managed to secure 16 lots in this green fields subdivision and we understand that the next release of sections and house & land packages will be at a much higher price.