August 2026 - Christchurch Rental Market Update

Confidence Returns to the Canterbury Property Market

The latest economic and investor reports from leading New Zealand property economist Tony Alexander suggest confidence is gradually returning to the property market, with Canterbury continuing to stand out as one of New Zealand's strongest regions for residential investment.

While higher ownership costs and interest rates remain challenges, there are plenty of encouraging signs for Christchurch landlords.

Canterbury continues to lead

One of the standout findings from the latest investor survey is that Canterbury is now regarded as New Zealand's most attractive region for residential property investment.

When investors were asked where they would choose to buy today, Canterbury ranked first by a significant margin, reflecting confidence in Christchurch's affordability, resilient local economy and strong long-term rental fundamentals.

Although inflation remains above the Reserve Bank's target and further OCR increases are expected in the short term, business confidence is beginning to improve, suggesting the wider economy is gradually moving in the right direction.

Positive signs in the rental market

The latest surveys indicate landlords are finding it slightly easier to secure quality tenants, vacancy concerns are easing, and expectations for rental growth have strengthened.

These trends are consistent with what we've experienced at Rentworks.

During July, the average rent across our portfolio increased slightly, while both rent arrears and vacancy sat at just 0.22%—an excellent result and a reflection of quality tenants, proactive property management and a healthy local rental market.

Although we had relatively few properties available for rent during the month, those that did become available leased quickly. We also saw encouraging demand at the premium end of the market, with several homes renting successfully at more than $1,200 per week. This suggests demand remains healthy across a broad range of the Christchurch rental market, including high-quality executive homes.

Looking ahead

As we move towards spring, we're already seeing positive momentum.

September traditionally marks the beginning of a busier period for the rental market, and we're well through our September lease renewals. Pleasingly, a very high percentage of our tenants have chosen to commit to another fixed-term tenancy.

Strong tenant retention provides greater certainty for landlords, reduces vacancy costs and reflects continued confidence in the Christchurch rental market.

Our outlook

No market is without its challenges, and rising ownership costs continue to place pressure on landlords. However, the overall picture is becoming increasingly encouraging.

Christchurch continues to compare favourably with the rest of New Zealand, investor confidence is improving, tenant demand remains healthy, and quality properties continue to perform well.

We'll continue to monitor local market conditions closely and keep our owners informed, but as we head into spring, there are plenty of reasons to feel optimistic about the Canterbury rental market.