Property Apprentice Podcast

Christchurch Students Face Housing Crisis: The Struggle to Find Accommodation

• Debbie Roberts • Season 3 • Episode 40

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 Hi everyone, I'm Debbie Roberts, owner and financial advisor at Property Apprentice. Join us today for the Week in Review where I talk about current events for the everyday investor and home buyer. Our topics for this week. Topic number one from   📍 Oneroof on the 22nd of October. They know they will be blowing first home buyers out of the water. 

Topic number two from   📍 1News on the 22nd of October. Jumbo sized 75 point OCR cut possible next month, Economist.  Topic number three,   📍 Oneroof on the 22nd of October. Heart wrenching: christchurch students struggling to find a roof as accommodation shortage bites.  

Topic number four from   📍 OneRoof on the 22nd of October, Tony Alexander, 2025 could have been a really bad year for property investors.  And topic number   📍 five from interest. co. nz  on the 24th of October,  ICNZ opposes UK -style flood reinsurance scheme for New Zealand, saying it could send the wrong signals.  

So first up for this week in review from Oneroof on the 22nd of October, they know they'll be blowing first home buyers out of the water.  A surge in unconditional cash offers is putting pressure on the housing market, particularly following recent cuts to the cash rate. 

Real estate agents report that buyer confidence has increased, leading some to make no strings attached offers to outpace the competition. Blair Pointon an agent with Lodge, noted that after the rate cuts, many seasoned investors began dropping conditions altogether.  Before, offers often required 10 to 15 working days for building inspections and finance approvals, or even longer if contingent on a house sale.

Now, homes in Hamilton priced under $800, 000  are facing increased demand, with investors re entering the market and competing with first home buyers.  Point in shared examples where unconditional cash offers won out. A 3 bedroom home in Fairfield received 7 offers in 6 days and sold to an investor for $740, 000.

Similar cases include a $674, 000 3 bedroom home in Chartwell and a $655, 000 2 bedroom duplex in Huntington.  All sold to experienced investors who waived building reports to close deals faster. These investors, Pointon said, were taking calculated risks to edge out first home buyers. Fewer buyers are now making offers contingent on selling their homes, unless the offer is significantly higher than others.

Pointon explained that many are realising the need to sell their property before making an offer. David Ding, a Harcourts agent on Auckland's North Shore, confirmed this trend, noting that buyers are keen to stand out. Some anticipate a 10 percent market increase next year, so they're willing to pay 5 percent more now to secure a home.

Ding added that attendance at open homes has doubled, and properties that lingered on the market for months are now under contract. Mortgage advisor Gareth Veale observed a rise in demand for fast finance approvals as clients rushed to beat the competition. However, he cautioned that cash unconditional offers aren't suitable for everyone, advising inexperienced buyers to avoid them.

Veal stressed that while some banks move quickly, the approval process still takes time. Lawyer Jonathan Wood, a property expert, warned buyers against skipping due diligence, calling it foolhardy to make offers without a building inspection. He emphasized that even though inspections aren't foolproof, they are essential in identifying potential defects that might not be obvious to an untrained eye.

And I totally agree with that. You know, one of the things that we always caution our clients about is, you know, if you're trying to save money on due diligence, you can end up paying tens if not hundreds of thousands of dollars more, when you discover that the property that you shouldn't have purchased, Is actually a real lemon.

So never skimp on due diligence unless you're very experienced in that area and also potentially have got the skills of a building inspector to take into account as well. 

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All right, topic number two from One News on the 22nd of October, jumbo sized 75. 0 CR cut possible next month. Economist.  The debate over whether the Reserve Bank should make a significant cut to the official cash rate, the OCR, next month is intensifying.

Financial markets currently estimate a 20 percent chance of a 75 basis point cut in November, fuelled by concerns that the Reserve Bank meeting won't be until February.  BNZ's head of research, Stephen Toplis, acknowledged that while a 75 basis point cut is possible, a 50 basis point reduction is far more likely.

He noted that the central bank has only made 75 points or larger cuts on three occasions. One during the global financial crisis when Lehman Brothers collapsed in response to the onset of the global pandemic. And thirdly, more recently with a 75 basis point increase following a significant inflation surprise. 

Toplis emphasised that the current situation doesn't justify such a drastic cut.  Unlike past crisis, the economy isn't facing a disaster, and a large cut could risk reigniting inflation. He added that while interest rates need to drop below 4 percent to stimulate the economy, a gradual reduction is essential.

Many borrowers have short-term loans, so lower rates will benefit them quickly. Toplis explained that while mortgage rate reductions could save borrowers hundreds of dollars per week, far more than the tax cuts discussed recently, there's a risk of flooding the economy with money too quickly, which could distort the impact of the cuts.

Despite these concerns, Toplis reassured that there's no need to panic, as the Reserve Bank is clearly aiming to lower interest rates to boost economic activity. 

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If you'd like to learn more about investing in property,   📍  📍 join me at one of our free events called How to Succeed with Property Investing.

I'll discuss strategies for successful investing from my perspective as an experienced investor and a financial advisor, and these events are held live, online or in person. Check out www.propertyapprentice.co.Nz for upcoming dates and register today.  We don't sell property, so it's all about increasing your knowledge to reduce your risk. 

If you've already been to one of our free events and would like to find out more about how we can help you to reach your financial goals,   📍  📍 you can also book a no obligation phone call or meeting with my husband Paul Roberts.   

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Topic number three from Oneroof on the 22nd of October, heart wrenching:

christchurch students struggling to find a roof as accommodation shortage bites.  Canterbury University is facing a severe shortage of student accommodation, with demand spilling over into an already tight private rental market. Rising enrolments have created pressure, and some students may struggle to find housing.

The university expects all 2, 800 spaces in its halls of residence to be filled next year, leaving around 1, 297 students searching for alternative accommodation. A spokesperson from the University acknowledged the challenge and advised students on the waitlist to consider private rentals or boarding. 

Despite the addition of 506 rooms in 2021  and plans for another 280 by 2026, the student population continues to grow, with enrolments reaching 25, 000. Caroline Register from HAR Court's. Holmwood Property Management described the rental market as "manic", noting the flood of student applications for rentals.

One property in Ilam received 48 applications and others saw similar interest, despite the agency having fewer than 100 student rentals available. She expressed a desire for more investors to enter the market to meet the demand. Bailey's investment specialist, Angela Webb, pointed out that the shortage of student housing has driven up rents and property values, with both investors and parents competing for properties.

Recently, a six bedroom property in Ilam sold for $1. 725 million at auction, with investors vying for the property due to its strong rental return. Webb noted that student accommodations around the university are performing better than other properties in the area, with increasing rents and sales values.

Ray White Metro's Richard Withy  added that student rentals are snapped up quickly each year with the demand far exceeding supply. He also mentioned that changes to tenancy law, including the no cause termination rule, have impacted the traditional rental cycle, making it harder for landlords to list properties in advance for student use.

The overall sentiment from agents and experts is clear. More student housing is needed to alleviate the pressure on both students and the wider rental market. So there's a good tip for any investors out there that are looking  at Christchurch as an, as a strategy for purchasing investment properties, maybe consider student accommodation. 

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Topic number four from Oneroof on the 22nd of October. Tony Alexander, 2025 could have been a really bad year for property investors. This analysis is provided by independent economist Tony Alexander. Landlords are losing leverage in the rental market, but the recent drop in interest rates offers some relief.

An upcoming survey by Crocker's Property Management reveals that the balance of power has shifted in favour of tenants. Earlier this year, 26 percent of landlords found it easy to secure good tenants, but now a record 22 percent report difficulty. This shift is likely due to reduced net migration and an increase in property sales to first home buyers. 

Landlords expectations for rent increases have also declined. At the end of last year, 82  percent of landlords planned to raise rents, but now only 64 percent anticipate doing so. The average expected rent hike is  down to 4. 4% compared to 5. 8 percent in December 2023, and a peak of 6. 3 percent in mid 2023. This trend may help ease inflation, and in turn lower interest rates.

Another notable finding is that more landlords are seeing positive attitudes from banks regarding lending.  Currently 22 percent of respondents report favourable financing conditions, up from 7 percent late last year. Banks seem to recognise the turning point in the real estate market, driven by new investors and sustained demand from first home buyers, alongside falling interest rates.



However, banks have yet to significantly reduce mortgage rates, possibly to maintain healthier margins. Lastly, concerns about net migration have grown slightly. While only 2 percent of landlords worried about declining immigration last year, that figure has risen to 7%. Despite this, it remains a minor concern compared to ongoing worries about rising council rates, insurance premiums, and maintenance costs, which all need to be included when you're crunching the numbers for your cash flow. 

Without the recent drops in interest rates, many landlords might have considered selling their properties in the coming year. So good news for landlords, good news for tenants, with more properties becoming available to rent as well.  

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Topic number five from interest. co. nz on the 24th of October, ICNZ opposes UK-style flood reinsurance scheme for New Zealand saying it could send the wrong signals.

The Insurance Council of New Zealand, ICNZ, remains opposed to a flood reinsurance scheme for New Zealand despite the success of a similar initiative in the UK.  

Three years ago the ICNZ dismissed the idea of adopting a scheme like Britain's flood reinsurance scheme as a grossly disproportionate response. Flood Re, launched in 2016, is a reinsurance program designed to help areas with high flood risk in the UK. It's a collaboration between the British government and insurers, funded by a levy on all home insurance policies.

Insurers also pay premiums based on the council tax band of the policyholder's home. Despite this, the ICNZ, along with insurance councils from the UK, Australia and Canada, recently sent a joint letter to their respective Prime Ministers urging a cooperative approach to address increasing natural hazard risks.

These insurance associations represent about $200 billion US dollars, that's $329. 4 billion New Zealand dollars, in gross written premiums.  The letter highlighted that extreme weather is driving up premiums in vulnerable regions. New Zealand has faced significant weather related damages in recent years, including 3. 8 billion in insurance payouts from the Auckland anniversary floods and Cyclone Gabriel in 2023.  ABI Director General Hannah Gurga praised the UK's leadership in creating Flood Re noting its success in maintaining insurance accessibility for hundreds of thousands of homes.

She emphasised the growing threat posed by climate change. In New Zealand, the idea of a similar scheme was proposed in 2022 by then EQC minister David Clarke but was rejected by the ICNZ which called it an overreaction in a submission to the Labour government's National Adaptation Plan.  When asked if the ICNZ stance had changed due to rising insurance costs and extreme weather, a spokesperson reiterated that each country faces unique risks.

They pointed out that while 2% homes are in flood prone areas, about 20 percent of homes in New Zealand are at risk according to the Climate Change Commission. The ICNZ remains focused on supporting national resilience efforts and maintaining affordable, accessible insurance.  The spokesperson warned that subsidizing insurance could encourage people to live in high risk areas, but ICNZ confirmed that no discussions about reinsurance schemes like flood re have taken place and reiterated its support for a government led framework to manage natural hazard risks.



Given the dynamic shifts in the property market from fluctuating interest rates to evolving buyer preferences, staying informed is crucial for making smart investment decisions.   📍  📍 Join us for our How to Succeed with Property Investing event. In our free online and in person sessions, we teach you proven strategies so you can make smart, informed choices.

Whether you're an experienced investor or just starting your journey, this event is filled with expert insights to help you to navigate the complexities of property investing and achieve your financial goals. I'll also tell you more about how we help our clients to achieve their investing goals. So if you're interested in finding out more about what we do, visit propertyapprentice.

co. nz today and sign up for one of our free events.  If you've already been to one of our events and would like to know more about how we can help you on your journey,   📍  📍 book a no obligation phone call or meeting with my husband Paul Roberts through our website. That's propertyapprentice. co. nz. Thanks for listening. 

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Check out the link in the description to podcast.  And we'll see you in the next episode. Happy investing. 

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Debbie Roberts

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Paul Roberts

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