Investment Property Areas in Christchurch

August 24, 2012

Christchurch is New Zealand's third largest city, and is home to some 367,000 people. Christchurch is a thriving modern city, with several tertiary education institutions and language schools based there, and strong agricultural, engineering and technology industries. As it enters an exciting period of regrowth and regeneration following the earthquakes of September 2010 and February 2011, many investors and developers are turning their eyes towards the Garden City.

There are several different options for property development in Christchurch. Christchurch has traditionally had a strong rental and property market and this continues to be the case. 

There is unmet demand for new commercial and residential property in Christchurch. These new properties will shape the new face of Christchurch, and there are many exciting opportunities for innovation and collaboration. The Christchurch City Council is actively encouraging new investors and is hosting seminars covering feasibility, market analysis, the consenting process, risk management, environmental performance, and the planning landscape. 

There is also the potential to buy, rebuild and repair earthquake damaged properties. The Government has offered to purchase some 10,000 "red zoned" homes enabling the owners of those properties to reinvest. At this stage little is known about which land will be deemed to be recoverable and consequently which properties and sections will be able to be rebuilt upon and what the management process of recovering those areas will look like. At some point the Government and insurance companies will be seeking to get some return on their costs in this area.

There are also many homes with minor cosmetic repairs that can be cost effectively repaired and made into desirable homes. Suburbs less affected by liquefaction and which experienced less disruption to services are more popular than ever before. Traffic patterns have altered considerably, meaning people are generally seeking to move closer to their places of employment or education, or alternately finding that living out of town has less impact time wise on their commute.

The basic requirements of property investment and management in Christchurch are the same as those elsewhere. Do your research about the market you are buying into. Consider the regeneration plans and long term infrastructure plans for indications of potential up and coming areas. Work out who your ideal tenants would be and buy a property you think would attract them. Make sure the numbers work and ensure you include all costs in your financial projections. Appoint the right advisors and property management team to minimise down time between tenants and to ensure the property is well maintained.

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Filed under Real Estate Investment

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