As New Zealand property market goes thru a price correction, Christchurch is no exception. If history is of any indication, one of the best time to buy an investment property is during a market wide correction and wait for a rebound, as it always has in the past.

1) Investors now have a unique chance to enter and own a piece of the Christchurch residential market in a time when there is lesser buyer competition, greater cost advantage due to developer’s thinner margins and a tight rental market for strong cash flows.

Source: REINZ, Monthly HPI report

2)In the last decade when Christchurch was going through the re-build, average prices remained largely flat due to subdued demand brought on by the reconstruction. As the rest of New Zealand saw a boom in house prices, a widening gap between the average price in Christchurch and all of NZ started to form. Prior to that, Christchurch’s average housing price has always traded closed to the average price in all of New Zealand. The widened gap offers investors today a rare chance to buy in an undervalued city that is ready to play catch up into the future. In the last 2 years, it started to experience fast growth with huge housing demand coming back after years of city rejuvenation.

With several major transformations within the city completed and several others that is still ongoing, the price gap is showing strong signs of closing up with the recent run up in price starting 2020 before the current mild correction. People come here for the renewed vibrancy of a new city and most importantly, its palatable housing price points as Christchurch remain one of the most affordable main cities in New Zealand. The current window period gives value investor an opportunity to get in before the next big run up in prices.

3) In the current nation-wide corrections, it is also evidenced that Christchurch remains largely unscathed as compared to the rest of New Zealand. This could be attributed to a resilient market where prices here are still affordable and draw strong support from home buyers and investors alike. Investors entering into Christchurch market now will take comfort that downside can be somehow limited as its prices here are the least vulnerable and less affected as compared to the ongoing correction across New Zealand today.

Source: https://ccc.govt.nz

New housing refers to additional housing added to the city's current housing stock. It excludes replacement housing (i.e. when a dwelling is demolished and replaced with a single dwelling).

Increased residential building activity started in line with the Christchurch rebuild. There was a sharp increase in new housing consented in year 2022, reflecting the strong demand for housing and new homes as population continues to grow. In addition, there is a robust buying trend for new houses that are built with the latest codes and compliance such as the healthy homes standard. People are seeking modern, comfortable warm and dry new homes that are near to their daily activities such as shorten commute to work and education facilities for school going children.

Despite the recent sharp rise in the new homes being consented, there is still a sizeable gap to cope with the market demand and a huge challenge to keep building activity at its peak. Even if new homes consents were to stay at its peak, it will take many years for the market demand and supply to come to an equilibrium. With land and construction costs on an unstoppable up rise, this provides investors a chance to enter early and enjoy an uplift in property value organically.