Why Christchurch Still Remains A Fantastic Place To Invest In Property
Over the years, Christchurch, Canterbury, has become known as one of the most affordable cities in New Zealand to live in. This is why Christchurch has been a hotspot for those looking to make a sound property investment.
Back in 2021, there had been reports stating that Christchurch may lose its ‘most affordable city in NZ’ reputation as demand outstripped supply and housing prices began to grow. However, it’s not as black and white as reports are painting it to be.
If you’re considering building a home in Christchurch as your latest investment venture but have been facing doubt due to these reports, we want to quell your fears and share why Christchurch remains a fantastic city to invest in.
Let’s Define Affordability
So what does “affordability” mean in the context of city housing? Economists compare housing prices in comparison to the average income to measure affordability. So what this means is that they work out just how much an individual uses their monthly income to pay their mortgages.
A National Perspective
Now, let’s look at how Christchurch housing prices compare to other cities on a national scale. Out of the three major cities, Christchurch maintains the lowest median house price, which is also lower than the national average for New Zealand.
For instance, in August 2021, the median home value in Auckland was $1,200,000, although it was only $650,000 in Christchurch. When comparing what percentage of an individual’s income goes towards their monthly mortgage payments, Auckland sits at 39%, Wellington at 30%, and Christchurch is at 18%.
If you look at this graph, you’ll see the affordability ratio between Christchurch and the national average, and you’ll note that Christchurch sits at an affordability ratio of 5.9 ‒ well below the national average of 8.1. Furthermore, this ratio has remained the same since June 2007.
Homes Still Undervalued
In addition to Christchurch being one of the most affordable cities on a national scale, it should be noted that Christchurch homes are still undervalued in comparison to what you get in return for them. According to a recent study, Christchurch is still undervalued by about 20% compared to the rest of New Zealand.
A Sound Investment
The Christchurch housing market has stabilised in recent weeks but values have not dropped as much as other major centres around New Zealand. It still remains to be one of the most affordable regions in the country and a fantastic opportunity for a sound investment decision with great potential.
If you’re considering building a home in Christchurch to live in or rent out, be sure to reach out to us at Hallmark Homes, “Multiple award-winning Registered Master Builders, Christchurch”. We can help you with new home builds, show homes, house and land packages and renovations. Get in touch to make your dream a reality today.