Invest in student housing: Angela Webb

What’s hot in the Christchurch investment market: Strong demand for student accommodation.

With an ongoing surge in university enrolments, student accommodation around the University of Canterbury has become one of the most sought-after investment opportunities in Christchurch.

As the demand for housing near campus skyrockets, both investors and parents are increasingly focused on securing properties within close range of the university. The shortage in student housing is pushing rental prices up, and as a result, property values in these key locations are also on the rise.

Investors who previously focused on other areas are now seeing the value in these high-demand rentals, as properties within a certain radius around the university are proving resilient and profitable. While returns traditionally fall between 6% and 8%, a recent high-profile sale on Waimairi Road highlights the unique appeal of modern and strategically located properties. The property, a six-bedroom, six-bathroom investment, drew multiple competitive bids and ultimately sold for $1.725 million. This sale was a result of a combination of factors: prime location, modern construction, and a solid rental income stream. Although it returned about 4%, which is lower than typical yields, the property’s enduring appeal reflects the current strength of the market.

With student rental yields still outperforming other property types in the university’s vicinity, this is one of the strongest investment markets I’ve seen in my career. Properties that can accommodate five or six students are particularly desirable, and competition is fierce. Investors, as well as parents buying for their children, are vying for these assets in auction rooms, driving prices up and keeping vacancy rates minimal.

For those looking to enter the Christchurch market, student accommodation offers a compelling mix of high rental demand and strong capital appreciation, particularly as Canterbury University’s growth shows no sign of slowing. The combination of stable rental income and future value growth makes these properties a hot topic in the local investment landscape. Call Angela on 027 349 1997 or email angela.webb@bayleys.co.nz