New Zealand’s skyrocketing property prices are causing headaches for home buyers, investors and politicians. And it’s only getting worse – the average price of a home in the country shot up by a massive 19.3% during the year to February 2021, according to the REINZ.

In the midst of all this unaffordability, there’s one city that’s bucked the trend and now boasts what I believe is the country’s most undervalued property market. That city is Christchurch.

Recognising Christchurch’s value

Economy

When you’re looking for a place to live or invest, you must consider the local economy. Bigger, more diverse economies are your best bet because they usually promise better paid, more stable employment for residents and a solid foundation for the housing market. 

Christchurch’s is the second biggest city economy in New Zealand and one of its most diverse. Because of investment and innovation in digital technologies, the city is now home to New Zealand’s largest ICT industry cluster, according to the University of Canterbury. The city is also a leading centre for engineering, biotechnology, avionics, agriculture, education, forestry and tourism. 

Lifestyle

Another reason to love Christchurch is the lifestyle on offer. The city’s redesign has transformed it into a world-class center, packed with cool stuff to see and do. 

New bars, restaurants, and cafes are popping up every week and the dining precinct on the Avon River is always packed with locals. The botanical gardens sit at the centre of the city, surrounded by tree-lined streets and high quality residential and commercial development. 

Location

Thanks to Christchurch’s location, you’re never more than an hour or two away from NZ’s most beautiful natural scenery. One of the world’s best ski resorts, Mt Hutt, is an hour and a half away and the Waipara Valley, home to over 75 wineries, is just 45 minutes drive north.

It’s no surprise that in a 2021 council survey of 3,330 Christchurch residents, 88 percent of them said their quality of life over the last 12 months was either good or extremely good. I wonder what the results would look like if you asked Aucklanders or Wellingtonians the same question?

NZ’s most affordable major centre

Despite all of its impressive attributes, Christchurch’s property market remains extremely affordable by New Zealand standards. Take a look at the median prices across major cities, according to REINZ data from Jan 2021:

• Auckland: $1,105,000
• Hamilton: $695,000
• Tauranga: $854,000
• Wellington: $885,000
• Dunedin: $618,000
• Christchurch: $520,000

The median house price in Christchurch city is more than half that of Auckland’s and around 70% less than Tauranga and Wellington. The median price here is also way lower than smaller cities like Tauranga and Hamilton.

The earthquake and the lingering damage it caused may be part of the reason behind Christchurch’s unusually low prices. Despite those challenges the city has rebuilt to be better than it ever was. Plus according to the BRANZ earthquake zone map Christchurch is actually at a lower risk of quakes than Napier, Queenstown & Wellington – all of which have much higher median prices. 

Christchurch is about to realise its value

After years of being undervalued, it looks like property prices in Christchurch may finally be starting to catch up to reality. In January 2021, the city had the highest monthly growth rate (3.1%) of any other centre in the country, according to CoreLogic. 

If those rates of growth continue, property prices in Christchurch may eventually catch up with the rest of the country. That’s why I reckon the best time to buy property in Christchurch could be right now.