The Christchurch accommodation sector has thrived in recent years as new residents and investors flock to the South Island city.
It’s no secret that Christchurch has experienced a post-rebuild boom in population and further investment that is making the central city one of the country’s most sought-after zones to live and work – and one leader in the property transaction sector has crunched the data to assess what the most significant current trends are in our second largest city.
Commercial property services leader, Savills New Zealand, has looked at the major effects of the Canterbury region’s massive population growth, new rules for the city’s Airbnb operators, and data from the hotel market to form a picture of how Christchurch’s economy is coalescing around its accommodation sector, which itself is attracting large-scale investment to meet demand.
Over the past two years, the convention centre has delivered a bump in the number of visitors to the city. That, coupled with Te Kaha, a new, 30,000-seat indoor stadium under construction and scheduled to open in April 2026, means property developers and accommodation operators are looking to align their investment horizons and asset management plans with an anticipated influx of visitors for larger sporting events and concerts.
Norman Engel, Savills’ director of commercial sales and hotels in Christchurch, said there is a focus on strategic hotel developments in the central city. With a three- to five-year construction timeline for a new build, some developments have been underway for some time and are planned to coincide with the opening of the stadium. In 2020 to 2021, the number of guest nights in summer was approximately 150,000 per month, while in 2023 and 2024, we are seeing that monthly figure frequently breaching the 300,000 mark.
“Christchurch’s 2024 summer was a stunner, setting record occupancy rates post-pandemic, and the projection is that 2025 will likewise have very high occupancy levels and drive international and national interest in hotel developments in Christchurch,” said Engel.
“We know there are nights the whole central city is filling up – anecdotally a Savills client who visited from Singapore for a weekend found the city was fully booked upon arrival and had to stay in an Airbnb 45 minutes out of town.”
Savills has been shepherding negotiations and transactions for many clients with interest in the sector, and recently completed the NZD 4.9 million sale as a going concern of the freehold Airport Palms Motel, which settled in May. The deal, one of the larger post-pandemic motel sales in Christchurch, was made with an investor from outside the city who was identified by Savills’ social media campaign.
Christchurch’s population growth is also a key driver of activity, with newly released data from the 2023 Census showing that greater Christchurch’s population grew nearly 10 percent between 2018 and 2023, substantially more than the nationwide growth of 6.3 percent over the same period. The Selwyn district recorded a 29 percent population increase in the same period, the highest rate in the country.
Savills’ executive for commercial sales in Christchurch, Martin Hebler, said that Christchurch has experienced unquestionable momentum.
“In my view, it is the most modern, liveable, and convenient city in New Zealand. Even with inflation, workers can still enjoy discretionary spending because of high-end and corporate salaries versus affordable rents,” said Hebler.
Norman Engel
“The economics of Christchurch are working and the city is a drawcard, as evidenced in the latest population statistics. All this makes the city a place to invest, which is why we are seeing such strong transactions here despite the general national downturn.”
The previous Government made the call to apply GST to platforms such as Airbnb and Uber, and this so-called “app tax” took effect on the 1st of April. It meant that anyone renting a property out through Airbnb (no matter the amount of income generated per annum) will need to charge GST to guests and send that GST payment on to Inland Revenue – the same as any hotel, motel, or other accommodation operator.
Hebler said that this change has had a positive effect on the whole accommodation sector.
“It puts everything on an even keel and gives power back to hotel and motel operators which are employing staff and generally investing in the sector and in the cities and communities where they operate. Importantly, as well as being required to charge and pay GST, anyone operating an Airbnb facility now needs consent to do so, which brings more transparency and fairness to the sector.”
The busyness of the Canterbury accommodation sector is not limited to central Christchurch. Savills has been appointed exclusively to bring Braemar Lodge & Spa in Canterbury’s Hanmer Springs to the market and is fielding interest from throughout New Zealand. The lodge sits on approximately 11,300m² of freehold land a 10-minute drive from Hanmer Village. With a floor area of over 4,200m², the 24-suite property is complemented by a wellness centre, conference facilities, restaurant, bar, commercial kitchen, and guest reception rooms.
Engel said there is keen interest in the boutique property, which has yielded interesting conversations with prospective parties throughout the country.
“Given the number of enquiries for the property we have strong indicators of interest and appetite in the hotel sector in the greater Canterbury region,” said Engel.
“In our assessment, Braemar Lodge is the most prestigious property in Hanmer Springs and there is plenty of upside for a buyer. Given the size of the 24 suites, investment opportunities could extend to altering the current configuration to increase room numbers within the existing footprint.”
Engel said that the property can also be operated as-is or taken on as a managed investment.
“A key accommodation operator has expressed interest in taking management rights, and a separate lease could be taken out on the expansive wellness centre, potentially providing this offering to non-in-house guests. The various options are creating appeal for several potential buyers.”
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