House prices tell the grim story of what's happening to the South Island's West Coast.
With the new round of job cuts at the Stockton coal mine, the average house price in Westport has fallen to $206,000, including the land.
But sellers are trying to see the upside. A three-bedroom, one-year-old house is available to buy for $290,000. It features an open-plan living room, modern carpets and air-conditioning, along with a designer kitchen.
The home is one of more than 300 on the market – a symptom of the downturn in the coal mining industry. House prices have fallen 30 percent from their peak two years ago.
Real estate manager Charley Elly says the number of properties listed has dropped dramatically since then.
"At that time, some days I was selling five properties before lunchtime. At the moment it might be lucky to be five properties a month," she says.
The story is the same at Bradley's Furniture on Westport's Main St. Retailer Pat Bradley has also noticed a significant drop in business.
"We have lost over 30 percent of business over the last two-and-a-half years, and as people have left the business, we haven't replaced them," he says.
With $10 million to be sucked out of the local economy with the loss of more than 150 jobs in a town of 5000, the town is planning to sell itself to Auckland residents and Cantabrians. Selling points include the fishing and hunting opportunities, $2 yoga classes and no policing of parking.
West Coast Mayor Garry Howard says he wants to stimulate the real estate market.
"We want to market in Christchurch and Auckland, and have those people in Auckland unlock the wealth they've got in their properties and come and buy a very nice home," he says.
3 News
source: newshub archive
