Last week, some of the Holmwood team attended a real estate event filled with insight—and some seriously smart minds. From economists and media experts to seasoned agents and data analysts, it was a who’s who of property talk. One point everyone agreed on? Christchurch is playing its own game when it comes to the housing market.

Right now, the city is experiencing what can only be described as a balanced market. Not too hot, not too cold—just right. Around 57% of homeowners believe it’s a good time to buy… and interestingly, buyers feel the same. That kind of alignment is rare. On top of that, 56% of buyers say the market feels competitive, while 45% of homeowners agree. Clearly, there’s a healthy tension out there.

A few years ago, people typically stayed in their homes for about seven years before moving on. These days, while around half still follow that pattern, a noticeable 30% of sellers are now listing after just 3–5 years. Whether it’s upsizing, downsizing, or simply chasing change, people are on the move faster than ever.

Christchurch is evolving rapidly, and it’s catching the eye of buyers from Auckland, Wellington, and even overseas. The city is no longer such a well-kept secret. More and more people are discovering that Canterbury offers a lifestyle that’s hard to beat—space, nature, and no gridlock traffic.

Today’s buyers are savvier than ever. Online valuation tools and AI are giving them a head start, which means agents need to be sharper too. Up-to-date data and market insights are no longer a luxury—they’re a necessity. Buyers and sellers want real-time information. Days on market, median house prices, buyer activity, suburb statistics—there’s no room for guesswork anymore.

And while there’s talk of house prices rising over the next year, it’s important not to get carried away. Some areas may see modest growth, but the post-COVID-style price surges aren’t on the cards. A small increase here and there? Likely. Major jumps? Unlikely. If only there were a crystal ball.

One thing is certain: presentation matters. With more homes coming to market, sellers must ensure their properties stand out. Strong marketing is key—it’s how to capture not only active buyers, but also those who didn’t realise they were in the market until that listing caught their eye.

First home buyers remain active, often with help from the “Bank of Mum and Dad,” or by teaming up with siblings and pooling KiwiSaver contributions. This support is lifting their starting budgets, which in turn is reopening the lower end of the market to investors. It’s a clever ripple effect.

The “as is, where is” sector is also seeing momentum. More buyers and investors are showing up to auctions ready to bid—and often paying more than they initially planned. With limited stock and time on their hands, some are banking on making up the difference when reselling to first home buyers in a stronger market. Meanwhile, some sellers are weighing up whether repairs are even worthwhile, with rising land values now doing much of the heavy lifting.

At the higher end—properties priced over $2 million—the market has slowed. Days on market are lengthening, and sellers who aren’t willing to meet the market risk falling behind it. In this segment, choosing the right agent makes all the difference. It takes strong networks and an experienced hand to bring those premium sales across the line.

So, whether someone is buying, selling, or simply observing from the sidelines, Christchurch is a city worth watching. It’s balanced, it’s buzzing, and it just might be the place to make that next move.

Shar Sutherland Todd – Branch Manager Holmwood Ilam2

Merry Christmas from Harcourts

At Harcourts, we’d like to take a moment to thank you for your continued trust and partnership this year. Your support has been
invaluable, and we are committed to delivering the best possible service as we move into the new year.

As the festive season approaches, we send our warmest wishes to you and your loved ones. May this time be filled with peace, good health, and joy; and may the year ahead bring you exciting opportunities and lasting success.

Residential Tenancies Amendment Bill 2024 – Update

In previous editions of the PM Focus newsletter, we have included updates on the progress of the Residential Tenancies Amendment Bill 2024. We can now report that the Residential Tenancies Amendment Bill (RTA Bill) has passed its Second Reading stage with all recommendations by Select Committee voted in favour and adopted.

Key examples of the committee’s recommended changes which have now been adopted in the Bill include:

• Clarifying rules for consenting to and refusing requests to keep a pet, by expanding and clarifying grounds for refusing a request, and adding
  a non-exhaustive list of reasonable conditions that a landlord may attach to their consent;
• Simplifying the smoking provisions, by allowing the prohibition of smoking inside while allowing for a case-by- case assessment elsewhere on a property; and
• Strengthening protections for tenants by extending existing rules for retaliatory terminations, which prohibit a landlord from terminating a tenancy in response to legal actions taken against them.

The next stage for the Bill is the Committee of the Whole House. You can find out more about the Bill and track its progress on the Parliament website. We will update you again when this Bill is passed into law.

Harcourts property managers are being kept well informed of the proposed changes, and once the Bill has been passed into law, we will be providing comprehensive training to all Harcourts property managers throughout New Zealand to ensure full compliance with the Residential Tenancies Act and Amendments on behalf of our landlords.

Modernising the tenancy bond service

Tenancy Services are upgrading and modernising the tenancy bond service and changing how they deliver their services.

This modern, digital-first system will make bond transactions quicker and easier for landlords, tenants and property managers. Changes will be made in stages, with the first stage of the project taking effect from late November 2024.

This first stage will enable new bonds to be lodged digitally. For property management companies, this will
be administered via our property management software that has been developed for a new business to business connection. For private landlords, other options will be available.

Harcourts offices use the most up-to-date property management software available, and we anticipate a seamless transition to the new and improved system.

Locking up over the holidays

If you are lucky enough to be going away over the summer holidays, you’ll want to make sure your home is as secure as possible while you’re away, to avoid any nasty surprises when you return.

Here are some tips for securing your home.

• Secure all tools, ladders, axes, hammers, and saws – anything that will help thieves break into your house.
• Lock all doors and windows, set alarms, and use deadbolts. Don’t forget the garage.
• Leave your curtains open and your blinds up, but if you have anyone popping over, get them to adjust them now and again.
• Use lights with timers – a dark home over many nights is a sure sign you’re away. Timed lighting gives the appearance of activity, and the more you mix up the lighting timing and locations, the better.
• Unplug appliances and devices to minimise the risk of electrical fires.
• Clean out your fridge to minimise the amount of food you keep in the fridge and freezer while you’re on holiday. That way less will be lost if there’s a power cut while you’re away.
• Turn down the ring tone on your phone if you still have a landline. Long, loud, unanswered rings are just another way of shouting out, “No one’s here.”
• Be careful who you tell, don’t advertise your absence on your phone answering machine, sites like Facebook, or anywhere else that isn’t secure.
• Leave an emergency contact number with friends or neighbours.
• Cancel your newspapers and other deliveries, so they don’t pile up on your doorstep and advertise that you’re away.
• Keep the garden tidy if you are lucky enough to be away for an extended period, arrange for someone to come and mow your lawns and tend to the garden.
• Ask a friend to help if you’re going to be away for an extended period, you may want to ask a friend to pop over once a week.
• Keep a car in the driveway or ask a neighbour to park in your driveway occasionally.
• Ask your neighbours to help if you know them well enough and ask them to check on your house for litter, and branches that have blown down or pot plants that have fallen over. These are tell-tale signs you have gone away.
• Tell neighbours you’re going away and arrange for them to collect your mail. Nothing says, “No one’s home!” like an overflowing mailbox.
• Hide any valuables including jewellery so that thieves cannot locate them easily.

Now kick back and enjoy your holiday with additional peace of mind.

Renting with Harcourts – Christmas edition

As part of our continued commitment to our tenants we publish a newsletter twice per annum to coincide with Winter and the Summer/Christmas season. Whilst some of the articles may be repetitive, with an average tenancy lasting from 1 ½ – 2 years,
we want to educate our tenants how to look after their rental, and what their responsibilities are. At Harcourts we believe, Happy Tenant, Happy Landlord.

In the latest edition of Renting with Harcourts we included the following articles:

1. Happy holidays from Harcourts (with a reminder to check your property for maintenance before the Christmas period)
2. Low Deposit Home Loans: Options for First Home Buyers in New Zealand
3. Safe removal of 3M adhesive strips
4. What do you really have to do for a rental inspection?
5. Make a splash around your home this summer
6. Maintaining a healthy home
7. Locking up for holidays
8. Renters insurance
9. Tenancy Services – The Tenancy bond service is changing
10. Update on Gumboot Friday
11. Christmas recipes

You can access a copy of the Renting with Harcourts newsletter here

When the RTA Amendment Bill has been passed into law, we will update our tenants on the changes that directly affect them.

We thought the article on the safe removal of 3M strips and the tip to use a hairdryer to remove them was useful enough to share with our landlords – see over page

Safe removal of 3M adhesive strips (for our landlords AND tenants)

Whilst 3M adhesive tape, or any similar product, is heralded as a product that doesn’t cause damage and is an alternative to putting nails and holes into walls; this isn’t always the case when it comes to its removal.

The removal of the adhesive tape can damage the wall if not removed carefully, and often removes the paint from the wall with the strip, leaving an unsightly patch on the wall.

Heat is essential for many chemical processes, and the molecules in the 3M adhesive will loosen up when exposed to enough of it.

If this doesn’t work, you can get a removal product from your local hardware store, or try solutions such as petroleum jelly, hand sanitiser or nail polish remover.

To avoid damaging the wall try using a hair dryer, heat gun, or heating pads when removing the adhesive pad. The heat can make it easier to remove stubborn residue.

We are delighted to announce that…

Harcourts Foundation NZ proudly supported Gumboot Friday for the third year, in 2024. With the successful fundraising efforts in 2022 and 2023
combined, the Harcourts network raised over $323,000 which made 2254 free counselling sessions available to Kiwi kids in need.
The impact of Gumboot Friday on the country has been astounding, and so has our network’s focus on raising funds and awareness for Kiwi kids struggling with their mental health. These children come from diverse backgrounds, families, and communities all over
New Zealand.

Time is running out – Healthy Homes Standards

As the 1 July 2025 deadline for compliance with the Healthy Homes Standards approaches, it’s crucial that all private rentals meet these requirements.
As a landlord, meeting these standards is not just a legal obligation, but a way to enhance the quality of your rental home.

By improving your property, you provide your tenants with warmer, drier, and healthier living environments, leading to better health outcomes and increased satisfaction with their rental experience.

If you haven’t already, now is the time to take action to comply with these standards.

Visit tenancy.govt.nz/healthy-homes/ for all the information you need.

We are pleased to bring you the latest updates on the recent property tax changes that have been passed into law.

The main tax changes are;

• Interest deductibility for residential property
• Returning the bright-line test to two years
• Removal of depreciation for commercial buildings.

Interest deductibility of residential investment properties is to be phased in

Mortgage interest incurred for residential investment properties will be phased in over the next two years.

• 80% of interest will be deductible for the 2024-2025 income year• 100% of interest will be deductible for the 2025-2026 income year
• If the property is a new build, 100% of interest remains deductible.

The status quo will remain for the 2023-2024 income year (100% interest deductible for a new build, 50% for residential rental properties acquired before 27 March 2021 and for (non-new) properties acquired on or after 27 March 2021, no interest is deductible).

Bright-line reduced to two years

The bright-line test, designed to capture tax on gains from sale of certain residential rental properties, has been reduced to two years.

The two year bright-line will apply for properties sold on or after 1 July 2024. In most cases, if a binding contract for sale was entered into on or after 1 July 2024, the two year bright-line will need to be considered.

If the binding contract was entered into before 1 July 2024, the 10 or 5-year bright-line needs to be considered.

There are specific rules that apply to “off plan” purchases, so it is important to seek expert advice on any property transactions.

Main home exclusion

The main home exclusion from the bright-line is being changed from the current calculations based on the time that the property is used as the main home and the land area of such use.

From 1 July 2024 the exclusion will apply in full if more than 50% of the time and more than 50% of the land area of the property has been used as the main home.

Be aware that if the property does not meet the main home exclusion, the gain on the sale may be taxable.

Example:

John entered into a sale and purchase agreement to acquire residential land in late 2021 with the transfer being registered on the title on 5 January 2022. He used the land as a rental property. He enters into a sale and purchase agreement to sell the land on 20 June 2024. The current 10-year bright line test will apply to tax the disposal of the land. The land was acquired after 21 March 2021, and the bright-line end date for the land (being the date the sale and purchase agreement was entered into), was prior to 1 July 2024.

Mike purchased a residential rental property with a bright-line start date of 5 January 2022. He enters into a contract to sell the property on 27 July 2024. Because the bright-line end date for the land is after 1 July 2024, and the property has been held for more than two years, the disposal will not be taxable under the new 2-year bright line test.

Removal of depreciation on commercial building

Depreciation for commercial buildings with an estimated life of 50 years or more, will be set at 0% from 1 April 2024 onwards (application for the 2025 income year)

Commercial fit out that is not part of the building structure can continue to be depreciated separately, so it is important to review this when negotiating agreements

Residential buildings cannot be depreciated for tax purposes.

It will be important to review the impact of the removal of depreciation on future provisional tax payments.

Residential property tax losses

The loss ring-fencing rules still apply for residential property losses.

Residential rental expense deductions can be claimed up to the amount of residential rental income earned in a year, including bright-line income from the sale of a property. However, any excess deductions cannot be offset against other income such as salary or wages. Excess losses are carried forward to be used against residential rental income in the future.

Rollover relief

Rollover relief is a concession that treats the person acquiring the property at the transferor’s cost price and the original acquisition date. Therefore, if the concession applies, bright-line tax may not be triggered nor the brightline acquisition date reset.

Further rollover relief is now available for the transfer of property from 1 July 2024.

In addition to existing rollover relief, bright-line property can be transferred without triggering tax where:

• The transfer is to an associated person (as defined in the Income Tax Act) and this association has been in place for two years
• If the transfer is to a trust, all beneficiaries of the trust have been associated with the transferor for two years.

Example

Sarah owns residential land with a bright-line start date of 4 June 2024. The land has a cost of $750,000. In December 2024, Sarah gets advice from her lawyer that it would be beneficial to transfer the land to her family trust. She has been a settlor, trustee and beneficiary of the family trust since it was established in 2020.

As a settlor and beneficiary of the family trust, Sarah is associated with the family trust. Sarah has been associated with the trust for more than two years. Therefore, a transfer of the residential land to the family trust will qualify for rollover relief. Sarah will be treated as having transferred the land to the family trust for its cost ($750,000), such that no tax consequences will arise for her under the bright-line test. The trust will be treated as having acquired the land on 4 June 2024 for $750,000.

On-line Market Operators – GST changes

New listing intermediary GST rules have been implemented for the supply of short-term or visitor accommodation through online marketplace (such as Airbnb) which may affect property managers and landlords that offer short term accommodation. These rules mean GST is charged whether the accommodation host is GST registered or not and changes who accounts for the GST to the Inland Revenue.

These rules are complex, and we suggest if you are affected by these changes (including accommodation hosts considering GST registration) you consult with your accountant or a tax specialist.

In summary, while these property tax changes bring welcome relief, they also introduce complexity that requires careful consideration. We strongly recommend consulting with your accountant or tax specialist to navigate these changes effectively and ensure compliance with tax obligations.

Disclaimer

This information is for general education purposes only. It does not cover all situations and circumstances and should not be taken as direct tax advice. If you are looking for specific help, please contact BVO (Stephen Rutherford or Julia Owens) to provide specific advice.

Harcourts value collaborations with trusted businesses like BVO, to contribute valuable content to Property Management Focus. It’s through these relationships that we can ensure our audience receives the most relevant and impactful insights. Thank you again to BVO for their valuable contribution.

Please visit www.bvo.co.nz for more information.