– A surge in investor interest near Christchurch’s upcoming $683 million Te Kaha stadium increased property prices.
– A Lichfield Street townhouse sold for $705,000 after intense bidding, driven by Airbnb potential.
– Investors are targeting mixed-use zone properties for short-term lets, anticipating high demand post-stadium completion.
A sudden surge in interest from out-of-town investors in properties near Christchurch’s soon-to-be completed $683 million stadium pushed the price of a central city townhouse to $705,000, smashing expectations.
The two-bedroom, two-bathroom property on Lichfield Street, just 33m away from the 25,000-plus-seat Te Kaha stadium, felt the heat in the auction room last Wednesday as seven investors went head-to-head.
A buyer from Nelson won the prize after a total of 26 bids were placed. Everyone wanted to run the property as an Airbnb.
Vivacity director and agent Aaron Pero said there were plenty of townhouses for sale in Christchurch, but few ticked all the boxes for buyers.
Investors are buying properties near Te Kaha, which is due to be completed in April 2026. Photo / Christchurch City Council
Investors were looking for townhouses or apartments in the important central city mixed-use zone so they could be used as a Investors were looking for townhouses or apartments in Christchurch’s mixed-use zone so they could use them as short-term lets all year. They also wanted their properties to be centrally located, near major infrastructure, and with a car park.
“This isn’t a one-size-fits-all market. Properties with strong fundamentals and future-proofed locations are selling well, while others with unrealistic vendor expectations or more generic appeal are sitting stagnant,” Pero said.
“When the recipe is right, there’s still really good demand.”
Discover more:
– Neighbours get more than $1.7m for their quake-damaged homes after joining forces
– North Islanders snap up the most expensive homes in tiny Otago town
– Tiny lakeside town where houses are cheaper and buyers pay in cash
Te Kaha stadium isn’t due to open until April, but Pero felt smart investors were thinking ahead and getting in early.
“Now it’s (the stadium) getting more attention, and it’s impossible to miss now, a lot more people are realising they need to buy now. As soon as it’s finished, everybody is going to jump on that bandwagon.”
Colleague Chris Cullens is selling a two-bedroom apartment at 12/226 Salisbury Street, in Christchurch Central, but the area’s residential zoning means the property is more suitable for owner-occupiers looking for a city base that could be let out occasionally for some extra income.
A Nelson investor plans to run the Lichfield Street townhouse as an Airbnb. Photo / Supplied
There were seven registered bidders at Vivacity’s auction room last Wednesday. Photo / Pablo Oliveira
Council rules prevent properties in residential zones from being rented out short-term for more than 60 days a year.
Pero said of the apartment: “It works for out-of-towners who do want to use it themselves, but for those people looking more as an investment, they need to be looking more at mixed-use.”
In the last few weeks, Ray White agent Ali Ahmadi had seen a noticeable spike in inquiries from out-of-towners looking for a property near the stadium in the mixed-use zone.
“Causing all of this are the headlines about the stadium being near completion and the new downtown plans. People are seeing it in the media and know this is where they need to invest their money.”
He has been fielding inquiries from Auckland and Wellington investors. One told him that not enough motels and hotels had been built in Christchurch since the earthquakes to meet future demand.
A two-bedroom apartment on Sugarloaf Lane sold for more than its asking price after multiple offers were tabled. Photo / Supplied
“Everyone thinks that it’s the Airbnb market that will have more interest after the stadium is built because they don’t think that the type of accommodation we have for guests is enough.”
Ahmadi said that while there were many townhouses for sale in the city, investors were the primary buyers at the moment, and they mainly sought centrally located properties in the mixed-use zone.
Other townhouses outside the zone were getting a look-in, though. A three-bedroom, one-bathroom apartment for sale for $529,000 at 103/226 Salisbury Street was in the residential-use area and had attracted more than 900 views within 24 hours of hitting the market.
Harcourts agent Mark McLoughlin agreed there was plenty of competition for the townhouses and apartments that could be run as full-time short-term lets.
A two-bedroom, one-bathroom apartment with a covered car park on Sugarloaf Lane, opposite the Justice Precinct, sold for $719,000 in April. McLoughlin said an investor paid $20,000 more than the asking price after several offers were received.
“I showed them on the Wednesday and we did the multi-offers on the Friday.”
McLoughlin said some investors were “getting in early” in anticipation of the stadium opening.
And while there was a lot of excitement around Te Kaha, which will have a 30,000 capacity for sport and 37,500 for concerts, he said no one actually knew what and how many events would be held there.
However, Super Rugby Pacific chief executive Jack Mesley told Newstalk ZB in June that plans were underway to bring back Super Round for the 2026 season and that Te Kaha was in line to host the event over Anzac weekend. The Crusaders have also confirmed they will be moving there.
– Click here to find more properties for sale in Christchurch