‘Fierce competition’ as east Christchurch house prices rise

Monday, 15 June 2026

The Christchurch suburb of Aranui has seen house values rise by 6.6% in a year.

East Christchurch is the hottest housing market in the city as buyers seek out value for money.

In the past year, eager buyers have pushed up the median (mid-point) values of free-standing houses by more than 6% across a cluster of suburbs.

The biggest increases according to analyst Cotality were in Avonside (6.8%), Aranui (6.6%), Wainoni (6.5%), and Waltham (6.1%). Values rose by between 5% and 6% in Avondale, Dallington, Bromley, Woolston, Phillipstown and Shirley.

Average values in those areas are mostly between $550,000 and $600,000 ‒ among the cheapest in the city. They compare with a $808,000 city-wide median and 3.2% annual value increase citywide, according to QV.

Avondale, Aranui, South Brighton and Southshore all saw values of townhouses and other units rise by more than 6%.

About 25 suburbs have a median house price of more than $1 million.

Cotality chief economist Kelvin Davidson said the boost was driven by a combination of affordability and an increase in first-home buying.

First-time buyers are now making up a higher-than-usual 27% of purchases in Christchurch.

Red zone amenities such as the City to Sea Pathway are an attraction in east Christchurch.

“Right now it’s a chicken and egg situation,” Davidson said.

“There’s an idea out there that the higher end of the market is immune ]to cost of living pressures] because wealthy people have plenty of cash, but the upper end of the market is weaker than the lower end.

“What we’re seeing is a market of first-home buyers being active, so whatever they are buying is more in demand. A lot of those areas are in east Christchurch.”

Cotality chief property economist Kelvin Davidson says first buyers are taking advantage of banks’ lower mortgage deposit requirements.

He said a combination of lower interest rates, KiwiSaver and banks requiring lower mortgage deposits were driving the increase.

In some cheaper locations, two KiwiSaver balances alone were “more than enough for a deposit”.

Sophie Craw and Xander Logan are part of this cohort. The couple are trying to buy their first home before interest rates rise, preferably in central or eastern Christchurch, near where Craw was raised.

Hopeful first-home buyers Sophie Craw and Xander Logan are house hunting in eastern Christchurch.

“We’re looking for something standalone, but it’s rare,” she said.

“It’s just a little more affordable out here … a little bit closer to the beach. I think it’s a great place to live.”

The couple said competition was fierce amongst the first-home buyers hunting in the east. Craw said it meant people were more likely to pay extra to get the deal over the line. There was plenty of interest in an open home they attended in Phillipstown on Sunday.

“For instance, this property [they are interested in] does need lots of work on it, but we’re happy to do that because we just want to be homeowners and not live in a unit anymore,” she said.

Although there were new townhouses available in their price range, she said they wanted something with character and without the strain of a body corporate.

“Definitely looking for something that has more life in it. My heart, my soul is dead in a little box.”

Tim Baker from Tim Baker Real Estate in Aranui sells homes in east Christchurch. He said he had seen a clear shift recently.

First-home buyer numbers are up in Christchurch.

“Everything has definitely gone up. Even a 5% rise on a $500,000 houses is 25,000, which is quite a lot of money.

“It’s not necessarily a good thing. Houses need to be affordable for people.”

Baker was mostly selling homes to first-home buyers, and saw few investors.

“There’s always people looking for a bargain, and there are also a lot of people looking for things to do up.”

He said the new Christchurch City Council rating valuations for the area were wrong: they had fallen, while the market had risen. One Pages Rd home he expects will fetch $430,000 had its RV drop from $415,000 to $385,000.

Baker said the eastern suburbs had a good stock of sturdy homes built between the 1950s and 1970s, mostly 100m2 to 110m2 in size, with double garages.

Council restrictions mean sections are not being subdivided for infill housing, so are bigger, he said.

Buyers like the proximity to shops, buses, the beach, schools and local services, and red zone walking areas, and the crime rate is low, he said.

“It’s a really convenient place to be.”

Additional reporting by Sinéad Gill