Hard-hit realty group making best of bad situation

Safety fences are erected around fallen bricks on Madras Street in central Christchurch. Photo / Simon Baker

Harcourts' largest New Zealand agency office was hit hard by the earthquake and the Christchurch building will be demolished.

Hayden Duncan, Harcourt chief executive of Auckland, said staff at the huge Grenadier City branch at 271 Madras St were forced to abandon the building, owned by the franchisee not the group.

More than 100 staff worked at the office and Christchurch was an important market for Harcourts, Duncan said.

"We tend to account for 50 per cent of the transactions and we have 417 sales consultants across 15 to 20 offices in Christchurch so it's been concerning. There will be offices consolidated and one we haven't had a choice on is Grenadier City. That's very, very badly damaged in the earthquake and it will be demolished. Harcourts Group don't own it, but the franchisee owns it so the impact from that is significant," he said.

Peter Greene, Grenadier City's managing director, and chief executive Robert McCormack head this part of the business, he said.

"They sustained the most damage. They have found new premises and they are moving in, outside the cordon but in the city area," Duncan said.

Some Christchurch Harcourt agents were moving out of town into areas like Ashburton, Kaiapoi and Timaru, he said.

Harcourts' website lists houses for sale in the hard-hit eastern seaside areas of South Shore, Cashmere, Redcliffs, Sumner and the CBD.

The disaster became a marketing tool for one Harcourt agent, advertising a property which "will not last long as demand for rental accommodation increases to accommodate earthquake victims".

Duncan estimated Christchurch had about 1000 agents but he believes some agents will leave the city and others will leave the sector for other work.

Deals caught in the twilight zone, between offer and settlement, would take two paths, he said.

"It depends on whether the property is uninhabitable in which case the contract is declared null and void. If the property is damaged but not untenantable, the property will be either rectified by the insurance company of the vendor, or the purchaser will deduct (the money needed for repair) at the time of settlement," he said.

The Real Estate Institute reassured agents post-September 4.

"Buyers and sellers can proceed with confidence. Without dismissing what has been a challenging time for many people, it is important to recognise that 'the market is the market' and there are always genuine buyers and sellers.

"There may be additional steps required as a result of the earthquake and existing EQC claims against homes, but this does not need to stop the purchase or sale of property," the institute said.

HARCOURTS CHRISTCHURCH
* 1414 houses for sale
* 722 houses for rent
* 401 offices for lease
* 121 offices for sale
* 125 businesses for sale