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Bayleys Residential Investment  Auctions

In response to the fast-moving dynamics of the residential property market in Christchurch, Bayleys Canterbury is hosting two special auction days to meet the demands of investors – both buyers and sellers. These auction days are Thursday 25 July and Thursday 29 August 2024.

The restoration of interest deductibility from April this year along with the Bright-line changes coming into effect from 1 July allowing investment properties to be sold after two years without incurring capital gains tax, will be warmly welcomed by property investors.

Christchurch, although its median house price is the lowest of the five major cities in New Zealand, has had a solid gain over the last four years and there is further room for growth. Property values in Christchurch have only fallen slightly in recent years, well behind those seen in Auckland, Wellington, Tauranga and Hamilton, showing greater stability and resilience within the local market. Rental yields are also currently amongst the highest in the country at 3.7%, well above Auckland which is sitting at 3%.

Investors looking to take advantage of the new Bright-line rules should get in touch with your preferred Bayleys Canterbury agent or ring 03 375 4700 to find out more about the dedicated residential investment auction event Bayleys is hosting. As a result of a two-year low volume activity, we have a substantial database of investors waiting for the right opportunity to make their move.

Auctions 25 July 2024

Join us from 11am on Thursday 25 July for a wide range of investment properties. Our auctions attract motivated sellers and present an excellent chance to find valuable investment opportunities in Canterbury’s resilient real estate market.

Don’t miss out on the opportunity to make a smart investment and secure your financial future.

Buying or selling?

If your circumstances have changed or about to change, the 1st of July 2024 will provide an opportunity to investigate different options and solutions to refresh your investment portfolio.
1. The dual new ownership and tax regulation changes have motivated the market back into action, effectively balancing out the supply and demand equation. Thus, allowing investors to rebalance their portfolio.
2. For those investors who have been managing high debt ratios, and tax bills which have been higher than previous due to the lack of mortgage interest deductibility, the changes to Bright-line provides an opportunity to offload properties and reduce some cost pressure.
3. An opportunity to update your investment portfolio – for example, with new build or townhouse opportunities providing lower maintenance options.
4. Sell and re-invest or refresh your portfolio in other property categories or regions.
1. Rental yields in Canterbury are amongst the highest in the country’s biggest cities and median weekly rental rates in Christchurch are amongst the cheapest of New Zealand’s bigger cities
2. Rental demand is generally strongest in areas underpinned by education fundamentals, including key school zones. University rental demand is up; there is already interest from University of Canterbury students seeking accommodation in the Riccarton and Ilam suburbs for the 2025 semester.
3. If Interest rates start to track down towards 2025, this will increase demand for quality property - ultimately improving sales values across the region.
4. The overall changes in the residential market and the stable state of the Canterbury market are providing growth opportunities for a wide range of investor buyers (from first timers through to experienced investors) resulting in a dynamic buyer pool.

Why Invest in Christchurch?

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Christchurch is an attractive destination for property investment for several reasons. Firstly, the median house price in Christchurch City is $665,000, significantly lower than other main centers in New Zealand, such as Auckland, where the median price is $1,050,000. This makes entry into the market more accessible. Additionally, despite the recent price correction, Christchurch's house prices have demonstrated resilience, indicating a stable investment environment.

Christchurch also offers a substantial portion of the market at lower price points, with 73% of properties priced under $800,000 compared to Auckland's 27% and Wellington's 54%. This broad availability of affordable properties increases the potential for investment opportunities. Furthermore, Canterbury boasts relatively high rental yields at 3.7%, which is competitive compared to other regions like Auckland, Waikato, and Bay of Plenty. This is complemented by the median weekly rent of $550 in March 2024, which indicates room for rental growth.

Overall, the combination of lower entry costs, resilient housing prices, substantial market availability at lower price points, and competitive rental yields makes Christchurch a promising location for property investment.

Property Management

Our dedicated award-winning Property Management team are here to manage your investment property and make the process as seamless as possible for you.