Watch Nathan's latest Christchurch market update below, or keep scrolling to read the full article:
With daylight savings only a month away and spring fast approaching, there’s a feeling of renewed energy stirring in the local property market.
The big news of the month of course was that the Reserve Bank dropped the OCR from 3.25% to 3%. This was widely expected. The NZ economy still needs the relief of lower interest rates to help stimulate consumer spending.
What was interesting to note was the RBNZ’s comments about further rate cuts, as it was the impression of many that we wouldn’t be seeing any more reductions in 2025. That may not be the case. If the OCR does get down to either 2.75% or 2.5% before 2026, we would be seeing rates around that 4.5% mark, which is great news for homeowners.
Expecting it to go lower would be a bit of a stretch, as savings and term deposit holders take a hit when interest rates are low, and that still remains a pillar of our economy.
Interest rates are currently sitting at an average of 4.79% for the 12 month rate, which is the favoured rate amongst our clients as of August 26th. A big improvement on 2024 - the rates were around 7% this time last year. Looking back, that hurts to say.
But how does this all affect the property market across Christchurch and the South Island?
Let’s dive in.
Thanks to REINZ, we have a pretty good picture on the sales and property data across our half of the country. A few changes from last month:
- Canterbury’s median house price rose 4.2% year-on-year, reaching $677,600, and edged up 0.4% from June 2025. Properties are still moving well, indicating steady demand.
- Otago saw one of the strongest gains nationwide, with median prices up 11.1% to $730,000.
- Nelson surged by 15.7%, climbing from $657,000 to $760,000.
- On the flip side, the West Coast recorded the biggest dip, with median prices down 14.0%, sliding from $401,000 to $345,000.
One thing to note here: FOMO is creeping its way back into the market in Central Otago - especially in Cromwell.
We’ve had reports from agents that properties listed are selling in under a week. The region is gaining serious momentum, with national infrastructure projects and property development picking up across the region.
Especially with Queenstown and Wānaka prices rising, Cromwell is a good affordable option, close to the action but with a little more room to breathe.
Within Canterbury, some districts stood out in July:
- Selwyn prices rose to $794,000 (up from $790,000 in June) with 152 sales. That’s a strong 22.6% lift in activity year-on-year, which is expected from the nation’s fastest growing district.
- Waimakariri District prices climbed to $715,000 (up 6.7% on last year) with 94 sales, holding steady month-on-month.
- Timaru District recorded 83 sales, up 27.7% year-on-year, with median prices rising 3.7% to $500,000.
- Hurunui District saw a notable 24.5% lift in prices year-on-year to $685,000, although sales volumes softened slightly.
And here in Christchurch?
- The median house price now sits at $669,000, up 3.2% year-on-year and 1.1% higher than June 2025.
- The city saw 712 sales, up 7.6% from July ‘24 and 6.6% from June.
- Homes are taking a little longer to move, at a median 41 days to sell, slightly higher than June (40 days) and above the 10-year July average of 37 days.
So overall? The market is thawing. As the daffodils slowly start to appear across the city, house prices are starting to shoot up as well, which combined with a drop in stock is generally positive for sellers. Less choice in the market often means stronger competition for well-presented homes. If you are thinking about upgrading your property, now is the best time to do so.
It will be interesting to see how future OCR decisions influence rates before the end of year holiday season, with banks likely to drop rates in response to each other first, rather than waiting for the RBNZ to play their hand.
If your loan is coming up for renewal, then it’s best to get in touch - we can help you get your ducks in a row, and set up the best structure for success, based on your goals.
Spring is shaping up to be one of the most active seasons we’ve seen in years, so whether you’re buying, refinancing, or investing, now’s the time to plan ahead. We’d love to help you make the most of it.