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Market Comment - January 2025

Writer's picture: Brent MandersonBrent Manderson

How Has the Year Started? A Look at Christchurch's Rental Market

As 2025 kicks off, we’re seeing the Christchurch rental market enter a period of notable movement and change. Here are the key insights shaping the landscape:

 

January: A Month of Movement

  • January is typically a high-movement period, with long-term tenants more likely to be on the move. This trend is amplified by an increase in available rental stock, giving tenants more choices.

  • Properties are requiring more viewings to secure new tenancies, and while viewing numbers are slightly down, this is due to the higher supply of rental properties.

 

Rental Trends and Market Influences

  • Rental Prices: Canterbury’s median rent held steady at $550 per week in November 2024, a level first reached in December 2023. So far, rental prices remain flat as the year begins.

  • Migration Impact: While migration may influence rental demand, it’s too early to predict significant shifts in rent levels this year.

  • Vacancy and Incentives: An increase in vacancy rates has prompted some property management companies to offer incentives, such as one week’s free rent, to attract tenants.

 

Factors Impacting the Rental Market

  • Developer Trends: Many developers, unable to sell newly built townhouses, are placing these properties in the rental market, increasing the overall rental pool.

  • Tenant Behaviour:

    • A growing number of tenants prefer homes suitable for remote work.

    • High numbers of tenants are relocating to Australia, contributing to local vacancy rates. As of now, over 600,000 New Zealand-born individuals reside in Australia.

  • Fixed-Term Tenancies: More landlords are opting for fixed-term agreements to lock in tenants until 2026, providing stability in uncertain times.

  • Upgrades and Renovations: Investment properties are seeing increased upgrades, such as interior painting, to stay competitive. This is a smart strategy in the current market.

 

Market Segments

  • Two-Bedroom Oversupply: The market continues to experience an oversupply of two-bedroom rentals, which is no surprise given recent trends.

 

Our Approach

At our office, we’re constantly monitoring rental rates and conducting multiple viewings for all vacant properties to ensure optimal outcomes for our owners.

 

Looking Ahead

Christchurch has always been a competitive rental market. It’s natural for property owners to feel some uncertainty, but the city’s long-term outlook remains positive. Steady population growth will continue to support demand over time.

 

 

On Another Note: Modernising Tenancy Services

Exciting changes are underway with Tenancy Services! They are upgrading and modernising the tenancy bond service to improve efficiency and convenience. Here’s what’s new:

  • Digital Transformation: Since November, the first stage of a new digital system has been rolled out. This system streamlines bond transactions, making them quicker and easier for property owners, tenants, and property managers.

  • Seamless Integration: We can now lodge bonds directly through our property management software. This modernisation is a significant step forward and will enhance our ability to serve both owners and tenants.

 

Thinking About Expanding Your Portfolio?

If you’re considering growing your property portfolio or want an update on the Christchurch rental market, our team is here to help. Feel free to give us a call to discuss your options and receive expert advice tailored to your goals.

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