You may recall that in my last market comment, I discussed the changes to rental laws. These changes can only be beneficial as we navigate a shifting market, with economic pressure affecting all sectors.
As the country’s second-largest city by urban population, Christchurch continues to attract both renters and buyers with its affordable housing. In May, the median rent in Christchurch was $570 per week, significantly more competitive than Auckland and Wellington, both at $690 per week. This affordability makes Christchurch an attractive option for relocation. Over the past financial year, rents here have increased by 5 to 10%, with strong demand and growth at the start of the year. However, rents are now stabilising, and we have seen a decrease for the first time in nearly two years.
This trend, combined with an increase in available properties, has made it easier for tenants to find rental homes this winter. Additionally, the higher number of listings on Trade Me means more choices and less competition for renters.
Understanding the demand for rental properties in the market is essential. Key factors to consider include:
Analysing growth in the area over time and appreciating the long-term gains. Population trends, infrastructure development, employment dynamics, and industry diversification within the region create growth potential, maximizing returns and attracting longer tenancies.
Christchurch’s rental demand has been driven by the post-rebuild construction boom. As this activity normalises, it's crucial to focus on the best property types for investment in each suburb or location, considering factors like transportation, schools, and new employment developments.
Tourism hotspots and recreational activities also drive rental demand by attracting workers to the area.
Housing construction has declined, and with rising insurance and rates bills, property owners may need to pass these costs on to renters eventually.
Please note that nothing I write here is intended as personal advice.
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