While units in some high-priced luxury apartment and townhouse developments being offered in Christchurch are struggling to sell, not enough options are available in sought-after lower price brackets.
There is significant demand for urban living in Christchurch, but not enough units for sale at the right price level. Instead, there are plenty on offer for $1m and above, where there is far less demand.
Over the past two years, our team has spoken to nearly 2,000 people who are looking for good-quality two or three-bedroom apartments close to the city centre, with a car park, priced from $450,000 to $650,000.
There is significant buyer demand for apartments and townhouses in that price bracket, but there are very few developers addressing this demand, either with new builds or renovations of existing buildings.
We just don’t have enough listings to satisfy current demand, because most of the developments being offered in the past few years have been at the $1 million-plus level.
Units in four complexes in the $450,000 to $650,000 price range which we have brought to the market in the past two years have sold out. There was tremendous interest in these projects and the units sold quickly.
The sold-out developments are:
- Koto Apartments at 136 Salisbury St (16 apartments)
- Olio Apartments at 469 Colombo St (12 apartments sold off the plans)
- Wiltshire Townhouses at 18 Salisbury St (eight townhouses)
- 275 Kilmore St (four apartments)
In contrast, we’re seeing units in some higher-priced developments stagnating and projects struggling to get off the ground – for example some luxury apartment developments planned close to Cranmer Square, Park Terrace and Carlton Mill have either had sunset extensions or have been removed from the market.
If more developers were focusing on bringing stock to market in the right price range – either new builds or refurbishment projects – we’re confident that we would have the buyers for them.
We would have a lot more people moving into the central city faster, if more apartment and townhouse stock was priced at the appropriate level. It’s a widely accepted fact that having more inner-city residents is a crucial requirement for the success of the re-emerging Christchurch city centre.
The next development we are offering to buyers is Centrum, a complex of 12 apartments in an existing building at 28 Salisbury St, just off Hagley Park and Victoria Street. The units are being refurbished and are nearly completed, which will result in “as new” apartments being offered to the market, with the owner looking to meet the current high-demand pricing level.
Learn more about Savills Residential Projects.