A Comprehensive Guide to Christchurch Investment

Why Christchurch Should Be Your Top Choice for Property Investment: A Comprehensive Guide for Investors

Christchurch is New Zealand’s second-largest city and it offers property investors a unique and highly appealing investment environment, with its combination of affordable property prices, strong rental yields, and a growing population,

For investors seeking both long-term capital growth and short-term rental yields, Christchurch is the city to watch and should be at the top of your list for property investment, especially when considering student accommodation as a lucrative option.

1. Affordability and Lower Entry Costs

Christchurch offers more affordable property prices than most other main cities in New Zealand, and it is an accessible market for both first-time and seasoned investors.

As of 2024, the average house price in Christchurch is around $765,011, while in Auckland, prices often exceed $1 million. This lower entry cost not only makes it easier to enter the market but also allows investors to achieve better rental yields. The less competitive market environment also gives you more opportunities to find hidden gems in up-and-coming suburbs.

2. Strong Rental Yields and Growing Demand

Christchurch offers strong rental yields, particularly for student accommodation. With an expanding population that includes a significant number of students, the demand for rental properties remains high. The city is home to several tertiary institutions, including the University of Canterbury, Lincoln University, and the Ara Institute of Canterbury, which attract both local and international students.

The average weekly rent in Christchurch is currently $538, and student accommodation often provides even better returns. Multi-room student rentals or shared accommodations allow investors to generate income from multiple tenants within a single property. This approach maximizes profitability and ensures a steady stream of positive rental income.

3. Undervalued Market with Capital Growth Potential

Compared to other New Zealand cities, Christchurch’s housing market is probably still undervalued (on a bang for your buck "eye test), and there's significant potential for steady capital growth.

The ongoing urban redevelopment post-earthquake has revitalized the city, and it is more attractive to residents and investors alike. As infrastructure and amenities continue to improve, property prices are expected to rise, offering an excellent opportunity for long-term capital appreciation.

4. Post-Earthquake Rebuild and Modern Infrastructure

Christchurch has undergone a major transformation since the 2011 earthquakes, emerging as a modern, well-planned, and resilient city. New developments such as the Christchurch Metro Sports Facility, the Canterbury Multi-Use Arena (Te Kaha), and Te Pae Christchurch Convention Centre are transforming the city into a hub for sports, entertainment, and business. These developments enhance the appeal of surrounding suburbs, driving both rental demand and property values upwards.

For property investors, this means more opportunities in high-demand areas that are benefiting from Christchurch’s urban renewal and infrastructure upgrades.

5. Economic and Population Growth

Christchurch’s economy is diversifying, with strong growth in industries like technology, education, and manufacturing. The city is no longer solely reliant on agriculture, and its growing job market is attracting new residents. Steady population growth is bolstered by internal migration from Auckland, where many residents seek more affordable housing and a higher quality of life.

As the population grows, so does the demand for housing, especially in student accommodation. International students add to this demand, offering year-round rental income for investors. Additionally, many suburbs like Rolleston and Lincoln are booming due to new business parks and transport links, providing further opportunities for capital growth.

6. Favorable Market Conditions and Sustainability

Christchurch offers a balanced market, with fewer fluctuations compared to cities like Auckland, which have experienced dramatic price spikes and corrections. The city’s steady, sustainable growth provides a more secure environment for investors. Moreover, Christchurch is embracing sustainability with green building practices, smart infrastructure, and renewable energy projects, making it a future-proof location for eco-conscious investors.

7. Student Accommodation: A Smart Investment & A Growing University

Canterbury has emerged as the clear winner in destinations of choice for students post-COVID, with numbers (and rents) surging and halls of residence bursting at the teams. Providing accommodation in Christchurch presents investors with a range of advantages:

• High and Consistent Demand: With a large student population, there is always a strong demand for affordable housing close to universities.
• Strong Yields: Student rentals often provide higher returns as properties can be rented out by the room, maximizing rental income.
• Low Vacancy Rates: The predictable academic year ensures consistent demand, with many students opting to stay over holidays or finding short-term tenants to fill the gaps.
• Scalability: Investors can start small with a single property and scale up by acquiring multiple units, making it easier to grow their portfolio.

Managing student accommodation is easier than it seems and the days of "cheap and filthy" are behind us. Many property management companies in Christchurch specialize in managing student rentals, handling everything from tenant screening to rent collection and property maintenance. There is a bit of extra tenant education around Students, so go with a business who is focused on doing it well. 

8. Future Development and Growth Areas

Christchurch is not only modernizing its central city but also expanding its suburbs. Suburbs like Rolleston, Lincoln, and Prebbleton are experiencing rapid development, providing affordable entry points for investors with long-term growth potential. These suburbs benefit from proximity to new infrastructure projects, schools, and commercial hubs, making them ideal for property investment.

How to start investing in Christchurch

Are you ready to invest in Christchurch to help build your future wealth through property? 

Our Buyer Service finds the best deals before others even get a chance, and we specialize in uncovering investment potential in properties that may be poorly maintained or managed, opportunities that aren’t obvious to sellers or even real estate agents.

As investment specialists, we see what others miss and with our curated local team of tradespeople, property managers, and other specialists, we make it easy for new, busy, or out-of-town investors to make great buys safely. 

As a Buyer Service client, we move quickly for you once we find a promising property. We conduct a fast early analysis and submit offers ahead of other buyers. We then bring in the experts—building inspections, healthy homes assessments, rental appraisals, and renovation quotes if necessary—to confirm the property’s potential. With a full picture in hand, you simply have a final decision to make based on comprehensive and indepently-verified analysis. 

From discovery to acquisition, we are with you every step of the way, ensuring you make informed decisions to grow your property portfolio and build long-term wealth.

Let’s find your next great investment today, contact me for an initial call.