Christchurch Housing Market Drives Impressive Growth in Building Consents

  • By Hadar 10th Aug, 2021
    Christchurch Housing Market

    Insatiable demand from investors and homebuyers has prompted the development of numerous new homes in Christchurch. The city has issued building consents for as many as 2800 new projects hitherto, in the last 12 months. The Christchurch housing market now reflects a 12% year-on-year growth in 2020-21, in this regard.

    What’s fueling the growth?

    Market experts are quick to note that the go-order on a slew of new residential projects, comes down to three notable factors:

    • Government diktat for interest deduction from property investors
    • Demand for a new property with median housing prices entering a cool-off period
    • Confidence in the market to continuously produce new, value-for-money housing

    The market should be even stronger by the time the recently consented new listings are complete, as per Christchurch housing market predictions from the builders themselves.

    What’s changed in the Christchurch housing market in FY2021 Q2?

    The FY2021 Q1 was quite a lackluster affair for the Christchurch realty market in terms of new housing.  The ‘winter cool-off’ period, teamed with a shortage of new listings slowed activity in the realty market. Sales were down as the residential value growth was down by 3.7% in April, 2.5% in May, and 1.9% in June. This catalyzed the resale market as buyers and investors were gripped by the Fear-of-Missing-Out.

    However, June-end brought along more favorable tidings thanks to the factors cited above. Christchurch housing market updates indicate that the sanction of building consents furthers the recuperating interest in new listing investments/purchases. This also clears apprehension in the new governmental regulations.

    Christchurch housing market predictions from the specialists also confirm that the median prices are here to stay after a 25.8% annual increase. The new median of $651,914 is not detracting consumers in terms of affordability, at all. If anything, the new building consents have bolstered demand for more, new listings.

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