Christchurch has experienced a strong first half of the year, with most properties attracting multiple applications and corresponding market based rent increases. It is pleasing to see as we enter our cooler winter months this demand continues to hold steady for well-presented three-to-four-bedroom homes. During late May and early June our feedback from renters was that it was increasingly difficult to find quality within the three-to-four-bedroom market.
On another note, we are watching with great interest the continued increased building activity for new two-bedroom units and townhouses across all parts of the city. These types of properties are seeing good enquiry at the moment and tend to be popular with professional couples and singles, and it is important to remember things like off street parking , garaging, and courtyards can all make a difference to enquiry levels. We do expect to see this part of the market becoming very competitive later in the year, and this may have an effect on rental rates if supply outweighs demand.
Currently the New Zealand economy is seeing increasing interest rates, investor tax changes, rising supply in some areas, reduced credit availability, and soaring construction costs and delays. Also, returns for non -property assets are in freefall. All these factors have an impact on the residential rental market as confidence falls. Owners holding property in these changing times should benefit from higher rental demand for certain parts of the market and city due to a decline in people committing to building or investing, and a number of owners exiting the market. This potentially could create an uplift in demand, and we could see more longer tenancies over the next 12 months.
This publication has been provided for general information only, and does not constitute financial advice.
