Source: MIL-OSI Submissions
On the back of a favourable starting point for housing affordability, property value growth has recently accelerated across Christchurch as well as Waimakariri and Selwyn. We’ve certainly heard a number of anecdotes that younger households are considering moving to the area simply because of better affordability. However, this upturn in values could still continue to be capped somewhat by the still-high level of construction around Greater Christchurch, especially in Selwyn.
After looking in more depth at the Queenstown property market’s rebound from its post-lockdown weakness a few weeks ago, we now turn to Christchurch (and its surrounds) – an area that’s been fairly flat for a number of years, but has recently shown signs of a stronger upturn. Indeed, as the first chart shows, rises in average property values have accelerated sharply in Christchurch (9.0%), Selwyn (7.7%), and Waimakariri (9.5%) in recent months, to the point where growth in each area is currently at its highest level in 6-7 years.
In Christchurch itself, the growth in median property values since March – i.e. the COVID era – has been reasonably broad-based, with only a few parts of the central city and some outer suburbs (e.g. Sumner, Northwood) lagging behind a little. In Selwyn, it’s been Lincoln and Tai Tapu leading the field, while Waimakariri has been driven by Rangiora and Kaiapoi.