Christchurch flat prices to rise as rental shortage bites

A student flat in Ilam near the University of Canterbury Photo: Canta / Matteo Zhang

University of Canterbury students are facing higher flat costs as a rental shortage and increased demand pushes prices up.

TradeMe Property figures show that the number of properties available for rent was down significantly in June, falling 19% on the same time last year, while demand was up at 35%.

20-year-old Jade Robertson who studies Environmental Science at UC said she had noticed there were less flats available this year, and that the quality of those available was worse.

Another UC student, Hariklia Nicola told Canta that she wanted to change flats as her current one was cold and mouldy, but that the search for new flat had been challenging.

“It sucks cause last year was really difficult and we started later, this year we were ahead of the game and have struggled more than last year, it is incredibly stressful,” she said.

Managing Director of A1 Properties Hamish Wilson told Canta that while student flat demand is usually high at this time of year as student flats are opened to prospective tenants, what was different was the reduction in student flats available on the market.

“There definitely has been a reduction in the student portfolio at our end, and across the greater student portfolio,” Wilson said.

Record high enrolments at UC and properties exiting the student flat pool will put “double pressure” on available accommodation Wilson told Canta.

UCSA President Pierce Crowley said that more enrolments were having an impact.

“While it’s great to see more people at UC, Christchurch is struggling to catch up with the demand,” he said.

With higher costs, less supply, and greater demand, flat prices are expected to rise, a trend reflected in the wider New Zealand rental market.

Trade Me’s Director of Property Sales Gavin Lloyd said that in June, New Zealand’s median weekly rent rose 9% on last year and reached a new record of $620.

“$50 extra a week adds up for tenants – that’s $2,600 more a year in rent,” Lloyd said.

For Christchurch students, the prices will be biting into weekly budgets too, Wilson says that student flat prices right across the board have grown on average $20 to $25 a room, compared to what they were last year.

Wilson’s advice for student looking for flats next year was to be organised, have a group sorted, and target properties with the right number of rooms. He said that it would be helpful to use a flat CV, with information about you and the group.

“Make sure you get in on the first viewing, if you can’t all make it, have half the group attend the first possible viewing, because its highly probable it’ll be rented after that, or at least be under application,” Wilson said.

Crowley echoed those tips and said that with a cheap efficient bus network, living further from campus was viable. He said that the while the USCA doesn’t provide accommodation, it can assist those who are struggling to find a place to live.