Market Comment - March 2025

The Market Has Shifted – What You Need to Know

The Christchurch rental market is experiencing a significant change. At the end of January, Trade Me rental listings in Christchurch were 425 higher than the same time last year, while rental demand has dropped by 30%. This trend applies across all property types, based on what we are seeing in our office.

Key Market Insights

• The number of tenancy bonds lodged in Christchurch is at its lowest in over 20 years (excluding COVID lockdown periods).

• A key factor is tenant movement—if fewer people are moving, overall bond numbers decline.

• We noticed the market slowing from October 2024, and rental enquiries over the Christmas period were notably low.

Recognising this shift early, we took proactive steps by scheduling multiple viewings in early January for our upcoming vacancies. As a result, we are pleased to report that over 99% of our February and March properties are now rented and tenancies secured.

Our current vacancy rate sits at just 0.85%, while Christchurch’s median rent is $520 per week, with an average time to rent of 21 days.

What’s Impacting Demand?

A range of factors are influencing the current rental landscape:

• Lower migration numbers reducing demand

• More renters becoming first-home buyers due to lower interest rates—first-home buyer activity is at a 20-year high

• An oversupply of new builds, increasing rental competition

• New builds affecting demand for older housing stock, particularly in certain areas

• Younger tenants choosing to stay at home longer to save money

• The high cost of moving, making tenants more likely to stay put

• A softer job market, leading to increased financial caution

• Developers lowering rents and offering incentives as some struggle to sell their new builds

• Reduced government spending, affecting economic confidence

• Investors shifting to newer housing stock, with older, low-cost rentals disappearing from the market due to rising ownership costs

What This Means for the Months Ahead

With tenants becoming more selective, properties are taking longer to rent. It’s more important than ever to ensure your rental stands out—competitive pricing, presentation, and compliance with regulations are key to securing tenancies.

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Healthy Homes: The Final Deadline is Approaching

By 1st July 2025, all private rental properties must fully comply with the Healthy Homes Standards. This includes:

• Heating

• Insulation

• Ventilation

• Moisture Control

• Draught Stopping

A huge thank you to our property owners who have already ensured their properties meet compliance. If you’re yet to complete the required upgrades, now is the time to act to avoid any last-minute issues.

If you have any questions about the market or compliance, we’re here to help. Get in touch with our team today.