Founded by English settlers in 1851, Christchurch became a city by Royal Charter in 1856, making it the oldest city in New Zealand.
Located on the East coast of the South Island of New Zealand, Christchurch is known as the “The Garden City”. It is home to around 350,000 kiwis and is the gateway to the South Island.
For those buying property in New Zealand, Christchurch and the surrounding district of Canterbury have a lot to offer. To the east lie the open ocean, the Banks Peninsula, wineries and the French settlers village of Akaroa. West leads you to the highest peaks in the Southern Alps with loads of great skiing. North takes you into whale watching territory in Kaikoura, forests and miles of empty beaches. To the south of Christchurch there’s the standard Kiwi death defying adventure sports such as whitewater rafting and jet boating as well as fishing, horse riding and golf for the more relaxed. So, all in all Christchurch offers a fantastic destination for those wanting to live and buy property in New Zealand…
The first thing to note is that buying property in New Zealand is straightforward, and if you’ve been granted residential status there are no restrictions placed upon you and what you buy. If you’re just looking to invest in real estate in New Zealand without seeking residency though, there are a few restrictions in line with the 1973 Overseas Investment Act.
The Act can restrict buyers to properties of less than 5 hectares (12.5 acres), and if the property is in a sensitive area, like on an island or reserve, can limit the property size to 0.4 hectares (one acre). Buying property in New Zealand´s urban areas isn’t usually affected by the Act though.
So what’s the real estate market doing in Christchurch and what’s on offer? Like most global real estate markets the New Zealand property market has shown a downturn over the last 12 months with prices overall having dropped 6.8% at the tie of writing. Within Christchurch property prices have dipped 7.8% during the same period, so it may be a time to be a little cautious and wait and see how far the market will fall.
The average price of a property in New Zealand currently stands at £147,000 - but bargains can still be had – particularly in a falling market environment! Small two bedroom 70m2 starter homes within Christchurch city start from around £65,000, and you could expect rental returns of around £90 per week for such a property if you’re looking to purely invest. Apartments in the city confines get on the market from £45,000 for a small 25m2 studio apartment - and these have good rental potential too. Further up the market, townhouses start from £95,000 and family homes come on the market from £110,000.
The rental market in Christchurch, as with most of New Zealand, has slowed down and landlords are finding their vacancy rates are higher than 2007; renters have more choice and are being a little more demanding…the little tinkers!!
All in all the signs for buying property in New Zealand seem to be pointing toward caution at the moment. There are good buys to be had on the market, but the downward slide in prices may well continue and offer better buying opportunities in the months to come. When you time your entry will be very much up to you, but if you do want to make a move sooner rather than later, remember that you as a buyer have all the odds stacked in your favour – so make cheeky offers and see if you can secure a good deal.
