Buyer interest steady as Christchurch prices edge up
Christchurch’s real estate market is holding firm as agents report consistent buyer demand, stable prices, and rising interest from first-home buyers and out-of-town relocators.
While not experiencing the dramatic surges of other centres, agents say the city’s post-earthquake rebuild, infrastructure, and affordability are making it one of New Zealand’s most balanced urban markets, OneRoof reported.
The latest QV House Price Index supports this view, showing Christchurch’s average home value rose 0.1% in the June quarter to $775,352 – a modest but steady gain in contrast to many other metro centres.
Buyers and sellers navigating an ‘expectation gap’
Chris Kennedy, managing director of Harcourts Gold, described the local market as steady – neither booming nor flat.
“The market over the past six months had been an interesting one – not a rock-star one but not dead flat either,” Kennedy told OneRoof.
He said a key theme was the “expectation gap” between buyers and sellers, driven largely by high property volumes giving buyers more choice.
“We see offers being made, and if they are not accepted, buyers move on pretty quickly and make another offer,” Kennedy said.
He pointed to the Halswell and Wigram areas as examples of markets with high stock levels across existing homes, new builds, and land-and-house packages.
“At the time of writing, there were 244 homes for sale in that area, which is a lot,” Kennedy said.
While he didn’t expect price spikes like those seen post-earthquakes or after COVID, Kennedy said the auction market was active, with clearance rates around 72%.
“If buyers and sellers can get over the gap, then there’s good results to be had,” he said.
First-home buyers and relocators eye Christchurch
Kennedy noted strong interest from first-home buyers using KiwiSaver, and steady relocation activity from Auckland and other cities.
“There’s not the same dangers, there’s not the same commuting issues, there’s not the same infrastructure issues that you see in Auckland,” he said.
“There’s nothing nicer than, and nothing better than, being able to own your own home.”
Christchurch’s liveability adds to its appeal
Kennedy praised Christchurch’s growth and lifestyle improvements, citing upcoming infrastructure like the stadium and sports centre as value boosters.
“We’ve got the stadium due to open soon; we’ve got the new sports centre due to open soon,” he said. “There’s just so much going on that’s reopening and starting to bring huge value to the city.”
Steady growth builds market confidence
Bayleys Canterbury general manager Rachel Dovey described the market as consistent and well-positioned.
“What we are seeing is a rather consistent market that is not dramatic,” Dovey said.
OneRoof figures show Christchurch’s average property value rose 1.4% by the end of May – just $4000 below the June 2022 record of $802,000.
Dovey said confidence was building, with positive conversations continuing even as vendor momentum recently slowed.
“Value increases, albeit small, gave the market confidence because it was travelling in the right direction,” she said.
Bayleys’ in-room auction clearance rates ranged between 50% and 60%, with follow-up sales keeping volumes healthy.
“Investors are steady and they are obviously making the most of the reduction in the OCR,” Dovey said.
Infrastructure, agriculture, and education bolster market liquidity
Dovey highlighted the city’s diverse economic foundations – agriculture, Fonterra payouts, and Canterbury University – as key strengths.
“Our market is not just a typical city… we’ve probably just got a little bit more liquidity… compared to others that are just pure cities,” he said.
“The infrastructure is great; great restaurants, all of that… the university and schooling is second to none.”
Ray White reports strong demand, especially in key school zones
Ray White Metro director Richard Withy also called the market consistent, noting strong buyer activity compared to 2024.
“Sales volumes have actually been quite strong comparatively to last year so that’s really good to see,” Withy told OneRoof.
He said interest rate declines helped fuel demand, particularly for well-located, well-presented homes.
“Probably more centralised to those two things really count, so your classic areas are Boys’ High, Girls’ High,” Withy said.
“Out close to the sea… Sumner, Red Cliffs, Mount Pleasant… we’ve seen some great results.”
Ray White’s auction clearance rate sat at 55%, with a 90-day clearance rate in the mid-80s – reflecting a healthy and functioning market.
“Over the last few months our sales are still outnumbering our listings… sales volume [is] really quite positive,” Withy said.
Affordability keeps borrowers and investors engaged
GV Financial Services broker Gareth Veale said access to borrowing remained solid in Canterbury.
“Access to borrowing has always been good in Canterbury because we’ve got comparable incomes to the rest of the country but the housing market is a lot more affordable.”
A typical couple could afford a three- or four-bedroom new build for $800,000-$900,000 – something that would be near-impossible in Auckland, Veale noted.
“Whereas in Auckland you’re dreaming and you might get a two-bedroom townhouse for that.”
He also reported increased refinancing activity and a cautious return of “mum and dad” investors.
“The interest rates getting down to 5% have certainly made the arithmetic a lot better.”
Christchurch market seen as balanced, resilient
While Auckland and Wellington face longer recoveries, Christchurch’s market continues to deliver moderate gains without volatility. As Veale put it: “The market was never broken.”
