(Newswire.net — November 25, 2020) —
Christchurch’s growing real estate market – good for the economy
Months of lockdown has been hard on even the most adaptable of people. Covid-19 has wrought havoc on both the global and local economies, added tremendous pressure on health systems around the world, restricted even everyday movement and interaction, and caused many to begin reprioritising their lives. The changes in lifestyle brought on by the pandemic and extended lockdown are possibly no more evident than in the current NZ real estate market trends.
For many, the lockdown has resulted in a need to reassess their finances, either due to having taken a pay-cut or as a result of losing their jobs altogether. This means that many are seeking better housing investments as a way to subsidise their income, while others are looking for a property that allows their money to go further each month. Still, others are embracing the new work-from-home normal by choosing to ‘semigrate’ to less urban areas that offer greater opportunities for a positive work-life balance since the previous necessity to be close to the business and commercial hubs in order to perform work-related activities effectively is no longer a requirement. Whatever the motivation, current trends indicate that Auckland is no longer the most sought after destination for home buyers. Rather, smaller cities like Christchurch are becoming more appealing investment choices.
The currently low-interest rates also mean that more first-time buyers are entering the market, since it often works out to be about the same, if not cheaper, to buy than to rent. Furthermore, many families are clubbing together to invest in property – either as a means for parents to assist their children to enter the market for themselves, or as a way to invest in a bigger property that allows for more people to live together comfortably and, thereby, save on costs in the long run.
Christchurch real estate is especially appealing for young families, since housing costs, specifically, are generally lower than in the bigger citiesas is the overall cost of living; yet, necessary amenities like good schools, transport, and job opportunities are all still highly accessible. The fact that the city also boasts a smaller population than both Auckland and Wellington means that those wishing for a bit more ‘space’ after being in lockdown in more congested areas are able to find their desired ‘breathing room’.
Not only are cities like Christchurch gaining in popularity for buyers, but their rental markets are also still active. This means that smaller cities can offer great investment opportunities for those wishing to buy to rent – especially if they opt to invest in longer-term rentals. The current demand for housing, both for renting and for buying, further means that development opportunities exist in smaller cities. Real estate developments could breath much-needed life into these smaller local economies, which could stand NZ in good stead as it works to recover after the pandemic. Despite the predictions that the real estate market would grind to halt as a result of Covid-19, it is encouraging to see the current growth trends in places like Christchurch, as it bodes well for the NZ economy as a whole.