Wholesale Property

KARAMU, RICCARTON PARK, 85 MANUKURA ST, RUSSLEY, DISCOUNTED OFF THE PLAN TOWNHOUSES

• Well designed, high quality, low maintenance townhouses in unique Riccarton Racecourse trackside location and quality suburb of Russley. Built be developer with 40 year track record in Christchurch.

• Development 50% sold out, 7 x 2 bed and 1 x 3 bed townhouses remaining.

• Opportunity for additional capital growth before settlement in Nov/Dec 2020

• Prices: 2 bed $518k & $528k, 3 beds $533k

• The prices for these turnkey townhouse and land packages have been discounted $17,000 - $32,000 by the developer to close out project now that construction is in progress.

• The Christchurch market is undervalued based on the historical growth performance and growing gap between Christchurch and national average. The earthquakes in 2010 and 2011 and city rebuild have interrupted the growth cycle.

RUSSLEY HOUSE / TOWNHOUSE MARKET PERFORMANCE

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

Note: Cost to own and cashflows are approximate examples only. Actual results achieved will vary based on purchase price, interest rate, deposit %, providing carparks, providing furniture, insurance, property rates and rental rate.

PRICE AND AVAILABILITY SUMMARY

ADDITIONAL DOCUMENTS

• Property Investors 2-bed forecast unfurnished

• Property Investors 3-bed forecast unfurnished

• First Home Buyers 2-bed forecast

• First Home Investors 2-bed forecast

• Property investment 1 page snapshot

• Rental assessments

• Valuation

• Master plan

• Lot sizes

• Floor plans

• Specifications

PROJECT OVERVIEW

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.

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.

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