Market Comment - December 2025

There’s been plenty happening across the Christchurch rental market this month, with steady tenant demand, welcome movement in interest rates, and significant changes around pets that are already sparking conversations among owners. Here’s a quick wrap-up of what we’re seeing on the ground.

Christchurch Rental Market – Stable, Active, and Still In-Demand

The Christchurch market remains in good shape. We’re seeing strong enquiry across most suburbs, particularly for family homes in areas like Halswell, Ilam, Avonhead, and Rolleston. Demand has definitely picked up, and even though the market still feels a touch quieter than usual, we’re noticing that properties are renting faster than they were a few months ago. Well-presented homes that are priced correctly continue to attract solid interest and are moving quickly.

Tenants now have more choice than they did during the peak of the rental squeeze, which means they’re a bit more selective — but that simply reinforces the value of good presentation and accurate pricing. With seasonal movement picking up from late December through February, we’re expecting a busy start to 2026.

Interest Rates – A Bit of Breathing Room at Last

The continued easing of interest rates has been welcome news for many investors. While the latest drop isn’t huge, it’s enough to give some breathing room to owners who fixed at higher rates during the peak cycle. Even a small reduction can meaningfully improve cashflow.

We’re already hearing from several owners who feel more confident about holding their rentals long term, and a few are even considering expanding their portfolios again. Sentiment is slowly shifting in a more positive direction.

If you’d like help reviewing your numbers or exploring a potential purchase, we’re always happy to go through the figures with you.

New Pet Rules – More Flexibility, More Uncertainty

The biggest legislative change this month is around pets — and it’s a significant one.

Landlords can no longer unreasonably decline pets. That’s the key phrase, and it’s going to guide a lot of conversations going forward.

The challenge is that “unreasonably” isn’t clearly defined, and we fully expect the Tenancy Tribunal to work through a number of test cases before clearer boundaries are established. What’s reasonable in a fully fenced standalone home may not be reasonable in an upstairs apartment, so context will be critical.

For now, we’re taking a case-by-case approach. When pet requests come in, we’ll consider factors like the type of property, suitability for the pet, the tenants’ rental history, and any potential risks to the home. Our goal is to help owners remain compliant while managing risk sensibly.

As Tribunal decisions start setting precedents, we’ll update owners with clearer guidance.

Final Thoughts

Overall, the Christchurch rental market is steady, active, and showing positive signs as we head into the busiest months of the year. A softening interest-rate environment and changes to pet rules are shifting things slightly, but confidence remains strong and well-presented homes continue to perform.

If you’d like to chat about your property, need a rent review, or want advice heading into the summer leasing season, feel free to get in touch. Always happy to help.