Market Comment - May 2025

Market Update – May 2025

As we move into the cooler months of 2025, the Christchurch residential rental market continues to show dynamic shifts. At Rentworks Property Management, we’re committed to keeping landlords and tenants informed about the latest trends, opportunities, and challenges in Ōtautahi’s rental landscape. Here’s a breakdown of what’s shaping the market right now and what it means for you.

Key Market Trends in Christchurch

1. Increased Rental Supply, Steady Prices

The Christchurch rental market is experiencing a noticeable increase in available rental properties, a trend that began in late 2024 and has carried into 2025. While rental prices remain flat, the higher supply means tenants have more options, leading to increased competition among landlords. Properties are taking slightly longer to rent, with an average of 21 days on the market. This is particularly true for two-bedroom rentals, which continue to face an oversupply due to recent construction booms near the city center. For landlords, this underscores the importance of presenting properties in top condition and competitively priced to attract quality tenants quickly.

2. Seasonal Shifts and Tenant Movement

May typically sees a slowdown in tenant movement compared to the high-activity months of January and February. With winter approaching, fewer tenants are relocating, and demand has softened slightly. This seasonal dip, combined with the increased supply, means landlords may need to be proactive. Offering incentives like a week’s free rent or including whiteware can make your property stand out in a competitive market.

3. Impact of Migration and Lifestyle Appeal

Christchurch continues to attract residents, with Canterbury recording the highest net gain from domestic migration for six consecutive years. Many newcomers, including singles and couples, initially seek two-bedroom rentals, contributing to demand in this segment. However, with an oversupply of these units, landlords must differentiate their properties—think off-street parking, modern amenities, or pet-friendly policies.

While international migration’s impact on rentals is less certain, Christchurch’s reputation as an affordable and vibrant city continues to draw people from Auckland and abroad. This long-term growth supports a positive outlook for rental investments, despite short-term challenges.

Regulatory Changes to Watch

The Residential Tenancies Amendment Act 2024, passed in December 2024, introduced changes aimed at balancing landlord and tenant rights. Key updates include adjustments to tenancy termination processes and notice periods. Additionally, all rental properties must comply with Healthy Homes Standards by July 1, 2025. Landlords should ensure their properties meet these requirements to avoid penalties and maintain appeal to tenants.

Tips for Landlords in Today’s Market

To thrive in Christchurch’s competitive rental market, consider these strategies:

• Enhance Your Property: Small upgrades like fresh paint, modern fixtures, or outdoor maintenance can boost tenant interest.

• Be Flexible: Pet-friendly policies or including utilities can attract long-term tenants.

• Price Competitively: With median rents at $550/week in Canterbury and $565/week city-wide, align your pricing with market trends to minimize vacancies.

• Work with Professionals: Partnering with a dedicated property management team like Rentworks ensures your investment is maximized. Our team conducts multiple viewings and monitors market rates to secure the best outcomes.

  
  

What’s Next for Christchurch Rentals?

While the current oversupply and seasonal slowdown present challenges, Christchurch’s rental market remains resilient. The city’s affordability, ongoing development, and lifestyle appeal continue to drive long-term demand. Landlords who adapt to market conditions—through competitive pricing, property enhancements, and strategic tenancy agreements—will be well-positioned for success.

For tenants, the increased supply offers more choices, but acting quickly on desirable properties remains key in this dynamic market.

Get in Touch

Whether you’re a landlord looking to optimise your rental investment or a tenant navigating the market, Rentworks Property Management is here to help. Book a market appraisal or contact our team for personalised advice on thriving in Christchurch’s rental landscape.