October 2026 - Christchurch Rental Market Update

Spring activity lifts across the Christchurch rental market

Spring has brought a noticeable increase in activity across the Christchurch rental market, and September was a considerably busier month for our team at Rentworks.

While the wider residential property market remains subdued, rental conditions continue to look relatively stable. For Christchurch landlords, that's an encouraging combination.

What we're seeing at Rentworks

September provided some particularly useful insight into what's happening on the ground.

We let 12 properties during the month, compared with five in August, as the normal spring increase in activity began to make itself felt. At the same time, average weekly rent across our managed portfolio edged up again, from $598.39 in August to $600.21 in September.

Vacancy remains exceptionally low. Our September vacancy rate was just 0.43%, representing only two vacant managed properties across the portfolio.

Reported rent arrears also remained extremely low at just 0.21%.

Taken together, those figures point to a Christchurch rental market that is active but fundamentally stable. Properties are moving, rents are holding firm and good tenants remain very much in demand.

A very different property sales market

The contrast with the wider residential sales market is interesting.

Recent surveys from independent economist Tony Alexander continue to describe New Zealand as firmly a buyer's market. His latest survey of real estate agents found a net 41% reporting falling house prices, while just 6% reported buyers experiencing FOMO. First-home buyers remain active, but investor demand remains particularly subdued. 

A net 49% of agents reported seeing fewer investors looking to purchase, with political and tax uncertainty among the factors weighing on investor sentiment. 

There has, however, been some useful clarification since that survey. Labour has confirmed that it does not intend to reverse the current interest deductibility settings for residential property investors. Its proposed property-tax change instead centres on a capital gains tax on profits from investment properties sold after 1 July 2027.

For existing Christchurch property owners, a softer sales market may create opportunities for buyers prepared to take a longer-term view. The important part is ensuring the numbers work — particularly with rates, insurance and financing costs — and understanding the likely rental demand before purchasing.

We're always happy to give our existing owners an indication of likely rental value if they're considering another property.

More choice means getting the basics right

With more properties coming onto the rental market through spring, tenants are likely to have a little more choice than they did through winter.

That doesn't necessarily mean reducing rents. It does mean pricing realistically from the outset and presenting the property well.

Our experience remains that well-presented properties at an appropriate market rent attract good enquiry, while properties that start above the market can lose valuable time — and even a short period of vacancy can quickly outweigh the benefit of trying to achieve a few extra dollars per week.

That's particularly relevant as we move towards the traditionally busy pre-Christmas and summer period.

Looking ahead

There are still plenty of uncertainties in the wider economy and property market, and the upcoming election may keep some buyers and investors on the sidelines for a little longer.

For landlords, however, the fundamentals we're seeing remain encouraging. September brought more letting activity, an average weekly rent above $600, very low vacancy and very low reported rent arrears across the Rentworks portfolio.

As spring activity continues to build, we'll be keeping a close eye on supply, tenant demand and rental levels across Christchurch — and, as always, keeping our owners informed as conditions change.