With property prices consistently rising beyond inflation
and average incomes, the number of buyers at the cheaper end of the market gets
larger and larger, while the pool of cheaper houses actually shrinks. Conversely, there are more and more
‘expensive’ houses to be seen, with fewer people who can afford them.
We have now seen a surge in popularity of those cheaper
suburbs which were previously less desirable, but are now in short supply for
first home buyers. This trend is likely to continue.
On the face of what we’re seeing in the numbers, it appears
there is particular interest in those suburbs valued towards the peak of the
$450,000 Kiwisaver cap, but it may be simply that a mortgage on homes around
that value is as much as most families are prepared to repay.
Below we’ve listed our favourite suburbs to buy 3 bedroom rental
properties in Christchurch. Our statistics were sourced from Westpac Data
Insight, to Sept 2014.
5 – Halswell – It’s hard to look past a suburb with so many
acres of new development taking place. The new subdivisions are well thought
out, immaculately groomed, and offer an abundance of reserve and walkways, and
flowing architecture styles. With new houses completed almost daily, you’re sure to find a suitable rental
property here.
4 – Beckenham – The southern border of Christchurch has
increased in popularity dramatically since the Canterbury earthquakes, so we
didn’t want to leave our favourite suburb of the south side off the list.
Beckenham is a character neighbourhood, so it’s hard to find a modern building
better suited for renting, but we believe the proposed heritage zoning and
future growth potential of Beckenham justifies this top 5 status.
3 – Wigram – This jewel has long left its stigma of the
pre-quake era behind, thanks to another quality development by Ngai Tahu
Property, who has a reputation for quality subdivisions. Now an attractive mix
of low and medium density properties; Wigram is also home to a promising
hospitality space at The Landing.
2 – Hoon Hay – 10.6% growth and a 6.0% yields last year.
These numbers stack up for a great investment, but we think there is more where
that came from. Beware of which parts of Hoon Hay you buy in though, as this
suburb is vastly different, depending on which part of it you’re looking. The
best parts are found south of Sparks Road.
1 - Hornby – Probably encouraged by extensive development in
neighboring Wigram Skies, Hornby topped the charts at 11.5% growth last year,
and a very respectable 5.8% yield. There is also further commercial development
underway in Hornby, which is now the closest major hub to the commuters coming
to and from Rolleston. For an affordable option, Hornby is the first place to
look.
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