The reinvention of Christchurch as a world-class, high-amenity and resilient city is attracting wide investor interest and underpinning economic growth in the South Island’s key business node.

William Wallace, Bayleys general manager South Island commercial and industrial says the city punches way above its weight and has been largely insulated from the value swings and other fluctuations seen elsewhere around the country.

“There’s been a ‘we’ll show you’ attitude and local development entities have put their money where their mouths are, taking control to bring the city back to life and creating a world-class built environment.

“It’s effectively a brand-new city and arguably, the best in New Zealand if infrastructure, building resilience, amenity and cohesiveness are used as benchmarks.

“This is driving confidence and along with continued strong local and national investor demand, Australian interests and institutional capital are actively scoping opportunity and adding to investment portfolios, and fund managers are back in the market.”

Christchurch Airport’s 2040 Master Plan looks to further support the South Island economy by boosting global trade connections and better accommodating the burgeoning e-commerce sector. The airport is expanding its existing air freight handling area, effectively doubling capacity, and an expanded international flight schedule is good news for the city – and the region’s – tourism industry.

Wallace says the Government’s Fast-track Approvals Bill green-lit 22 Canterbury projects including a waste-to-energy plant, the Ōtākaro Avon River Corridor Regeneration Plan, and several large housing developments.

“This speaks to the value Christchurch brings to the regional, South Island and national tables.”

Jesse Paenga, Bayleys director of South Island capital markets and corporate leasing says while sentiment around commercial property and leasing is buoyant, general business sentiment still needs to catchup.

“There’s a bit of a lag there but while we don’t want to get ahead of ourselves, 2025 promises better economic times which will further support exciting new initiatives in the city.

“The much-anticipated Parakiore Recreation and Sport Centre, New Zealand’s largest indoor sport and aquatic facility, is expected to be complete mid-2025, and One NZ stadium is due to open in April 2026.

“Both projects will underpin the city’s capacity to host top tier fixtures and events, and the hotel sector is responding to the uptick in demand for visitor accommodation, with new stock in the immediate pipeline and several major international brands currently scouting for opportunities.”

Paenga says the emergence of a modern and purpose-built CBD, with key anchor projects providing well-structured precincts, has given Christchurch a real edge. Buyers for commercial property in the sub-$10m space were very active in 2024, and he’s expecting to see increased activity for above-$10m property through 2025 given the improving interest rate environment and the return of fund managers and institutional capital.

“With the new stadium well out of the ground, hospitality and retail operators will also have more confidence to progress plans for a presence in the general area.

“There’s been a lot of occupier movement in the office sector too as businesses reposition and right-size their real estate footprints. As a result, there’s minimal vacancy currently across A-grade stock, but good opportunity and choice in B-grade and fringe space.

“With very little new-build office stock in the pipeline, and a number of big tenants looking to upsize in the CBD, we expect the A-grade market to remain very tight and for rents to hold firm.”

Cementing a presence in Christchurch, Willis Bond recently acquired the Eastgate Shopping Centre and the Entertainment Exchange (EntX) through its Capital Partners IV fund. Managing director of development for Willis Bond, David McGuinness, says Christchurch represents a dynamic and growing market and presents Willis Bond with a great opportunity to contribute to its transformation.

“Our investments in Eastgate and EntX align with our vision of creating vibrant communities and spaces that people truly enjoy. With the economy showing signs of strengthening, we are taking a long-term approach to these acquisitions to deliver real value to the region and our investors.

“Eastgate and EntX are strong assets in today’s market, with the potential to perform even better as broader economic conditions improve. Our focus remains on enhancing these properties to deliver value regardless of where we are in the property cycle.”

The city’s sustainable economic development agency ChristchurchNZ says consumer and business confidence are both on the rise, driven by falling interest rates, easing inflationary pressure, and growing optimism about economic conditions over the year ahead.

“Westpac data shows consumer confidence in Canterbury is at a three-year high, while Business Canterbury’s latest survey indicates 65 percent of local businesses are feeling positive about the region’s economy,” says Sophie Jones, ChristchurchNZ economic analyst.

“While challenges remain for businesses, particularly around cash flow, the overall trajectory is positive with ongoing recovery in the tourism sector presenting a key opportunity for the city.”

Loren Aberhart, general manager destination and attraction for ChristchurchNZ, says Te Pae Christchurch Convention Centre has boosted commercial and accommodation sector activity in the city, and the new One NZ Stadium at Te Kaha due early 2026 will provide further stimulus.

“With plans for circa-200 concerts, sporting and business events annually, the stadium is expected to host 500,000 people per year with 100,000 of those visitors from outside of Christchurch.

“ChristchurchNZ is working on developing a major event pipeline, and looking at ways to activate the precinct to connect retail and hospitality to forecast stadium foot traffic.”