Latimer Central Apartments, 277 Barbadoes St, Christchurch,

  • Well designed, high quality, low maintenance apartments in prime Christchurch CBD location

  • Total 38 x off-the-plan 1 & 2 bedroom apartments development

  • Opportunity for additional capital growth before settlement in late 2020

  • Prices: 1 bed $329k - $539k, 2 bed $435k - $649k

  • The Christchurch market is undervalued based on the historical growth performance and growing gap between Christchurch and national average. In the last 10 years the market grew 40% in value compared to 80% in the prior 10 years. The earthquakes in 2010 and 2011 and city rebuild have interrupted the growth cycle.


INVESTMENT OVERVIEW

Strategy: Off the plan
Upside: Growth prior to settlement
Rent: Furnished / Unfurnished
Lending: 80% LVR
Deposit: 10%
Deposit type: Cash, equity
Title: Unit

THE PROPERTY

Type: Apartment
Beds/Baths: 1+1, 2+1, 2+2
Carparks: TBC
Valuation: 18 sold at retail prices
Price per SQM: $TBC
Internal floor area: 1 bed 48 - 56 sqm
Internal floor area: 2 bed 66 - 94sqm

SUBURB PERFORMANCE

Category: Apartments
Market rents 1 bed: $367 - $415 p.w.
Market rents 2 bed: $400 - $482 p.w.
Median gross yield: 5.3%
Median sale price 10 years: +40%
Median sale price 20 years: +120%
Capital growth (20 years): 4.2% p.a.


CHRISTCHURCH CENTRAL APARTMENT MARKET PERFORMANCE

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Apartment median sale price July 19: $407,000

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Apartment sales volume: 620 per year

 
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Apartment days to sell: 44

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Apartment sales value: $43 million per year

Market data sources: Real Estate Investar, Tenancy Services, REINZ, One Roof


PROPERTY INVESTORS

Assessed rent 1 bed: $350 - 400 p.w
Assessed rent 2 bed: $420 - $570 p.w
Year 1 cashflows: 1 bed (+$8 p.w.)
Year 1 cashflows: 2 bed (+$84 p.w.)
DSR: 1.5
Gross yield: 4.6% - 5.4%

FIRST HOME BUYERS

Dwelling: 1 bedroom apartment
Purchase price: $409,000
Deposit: 10%
Weekly cost to own: $462
Occupancy: Sole

FIRST HOME INVESTORS

Dwelling: 2 bedroom apartment
Purchase price: $499,00
Deposit: 10%
Weekly cost to own: $323
Occupancy: With flatmate/s


ANALYSIS ASSUMPTIONS

  • Loan length: 30 years

  • Interest rate: 3.75%

  • LVR: 100% Investors / 90% Home Buyers

  • Rates: $1,600

  • CPI: 3.0%

  • Capital Growth: 5.0%

  • Valuation: 18 sold at retail prices

  • Legal/Loan fees: $1,000

  • Rent: Market rents appraised by property manager

  • Body Corporate: $2,200 - $3,200 as per budget

  • Property Manager: NIL

  • First Home Buyers/Investors current rent: $400 p.w.



 
 
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CHRISTCHURCH OVERVIEW

Christchurch is the largest city in the South Island of New Zealand and the heart of the Canterbury Region. The Christchurch urban area lies on the South Island's east coast, just north of Banks Peninsula. It is home to 404,500 residents, making it New Zealand's third-most populous city behind Auckland and Wellington.

The city suffered a series of earthquakes between September 2010 and January 2012, with the most destructive of them occurring at 12.51 p.m. on Tuesday, 22 February 2011, in which 185 people were killed and thousands of buildings across the city collapsed or suffered severe damage. By late 2013, 1,500 buildings in the city had been demolished, leading to an ongoing recovery and rebuilding project.

The city experienced rapid growth following the earthquakes. A Christchurch Central Recovery Plan guides rebuilding in the central city. There has been massive growth in the residential sector, with around 50,000 new houses expected to be constructed in the Greater Christchurch area by 2028 as outlined in the Land Use Recovery Plan (LURP). The rebuild of Christchurch and population growth has created significant investment opportunities for investors. Read more