Residential Market Update

NICK COWDY / Residential Sales Consultant

“Cantabrians still have confidence in the property market and the New Zealand investment playbook still favours property assets…”

I think we can all agree that this year has been full of surprises. As we look at the continuation of the COVID-19 saga in the absence of any certainty about the future, all we can do is reflect on what has happened to date and be encouraged by the performance of the local property market.

July statistics have shown the median Christchurch house price is up to $491,000, only 1.8% below the record median price achieved in March 2020. The first home buyer market has become highly competitive and we are seeing investors back in the market due to the low interest rates. The middle to upper end of the market continues to attract good buyer attention and the quality properties are attracting excellent interest.

Post lockdown, the median price recovered quickly from $455,000 in April to $477,500 in May, $480,000 in June and now $491,000 for July. This is extremely promising, considering the uncertain environment we are in.

The main driver is the lack of supply. Lower listing levels is a pre-COVID trend and we cannot see signs of a new surge in listing numbers. As record low interest rates encourage people to buy and invest, it also encourages people to retain surplus property as the return becomes more attractive than what is available in the bank.

Cantabrians still have confidence in the property market and the New Zealand investment playbook still favours property assets because they are relatively safe and tangible.

In the rental market we can see similar trends with fewer rental properties available, but this is not to say there are fewer tenants. In fact there is a surplus of tenants in the lower-priced end wanting properties, however it is harder to find the calibre of tenants to fit the ‘Cowdy Standard’ and pass our robust reference checking.

In a market that is ever fluctuating, we have been able to secure a higher average rent than last year, even if it sometimes takes a little while longer to secure the right tenant. Our investors are assured that the long term gains following this quiet winter period will pay off and they will continue to reap the rewards in years to come. This highlights the need to have the experts look after your investment to ensure your return is maintained and your asset is well looked after.

As we move towards the busy months ahead, we are excited to see how the spring and summer markets play out and with all-time low interest rates, why not get yourself on that investment ladder early. People are always going to need a place to live and people always have a reason to sell. In these times of uncertainty where businesses can disappear and  jobs can go, everyone still needs a roof over their head and what better place for your money than property?