Flooded Market?

There has been talk in the media that the market has suddenly become flooded with available rentals and that tenants now have the upper hand. This could be supported by comparing current TradeMe listings with those of March 2023.

November 2023: By size.

 ChristchurchBanks PeninsularSelwynWaimakariri
Studio to 2 bed3923917
3 bed26564120
4 bed9204011
5 + bed35082

March 2023: By size.

 ChristchurchBanks PeninsularSelwynWaimakariri
Studio to 2 bed318386
3 bed20732913
4 bed9503610
5+ bed26151

An increase of 112 properties in Christchurch or 17%. Increase of 26% in Selwyn. Increase of 67% in Waimakariri. A drop of 29% in Banks Peninsular.

Not totally a surprise. At this time of year you find many properties directed at the student population being advertised – though by now we would have expected most students would have committed to a property for next year. Given that the role of the University has increased substantially and that foreign student enrolments are now on the increase makes availability in this sector even more surprising. In the ‘family home’ sector availability reflects firstly the number of new homes coming onto the market many of which have been purchased by investors.  Coupled with this the real estate sector has been erratic over recent months. People are renting out their homes until they are satisfied that the real estate sector is rebounding and that their price expectations can be met.

November 2023: by rent level.

 ChristchurchBanks PeninsularSelwynWaimakariri
$0 – $20011010

March 2023: By rent level.

 ChristchurchBanks PeninsularSelwynWaimakariri

The big change is within Christchurch and within the $501-$800 rent level. There is a 27% increase in properties within this range. This reflects increases in rents over the period – but don’t get excited, that is not the key contributor. The ‘standard’ of home has changed significantly and the current availability is overall much more modern (if not brand new), larger and within the family home profile.

Our own experience is that demand is, more or less, matching supply. Rents have moved up. Our average rent has been impacted by the large number of new or near new properties we now have within the portfolio which attract a higher rent.