Stadium zone fast becoming hot property

The $683 million One New Zealand Stadium is causing a commercial and housing boom in surrounding streets with real estate values expected to keep climbing.

CBRE Christchurch’s investment sales associate director Paul Brown said commercial land values in the area in and around Cashel St have “about doubled” in the past five years.

“There’s been a lot of changes and the stadium isn’t even complete yet,” he said.

With the stadium set to open in April, new hospitality businesses are improving amenities, while townhouse developments are boosting foot traffic.

The precinct stretches from Barbadoes St to Fitzgerald Ave, east to west, and from Hereford St to St Asaph St, north to south.

The rezoning of the area as mixed-use – both commercial and residential – has also helped attract new businesses and housing projects.

“Once the stadium is finished, and in the years after, it will continue to evolve around that location with more residential. With more residential comes the need for more amenities,” Brown said.

Salus Property agent Andrew Zhang, who specialises in residential sales, is currently marketing a townhouse on Lichfield St priced at $749,000.

Within two years, he expects that property, and others nearby, to be worth about 20% more.

“I think we’ll be getting back to some of the peak pricing which we saw in about 2020 to 2021,” said Zhang.

There are eight townhouse and apartment developments in the area, most built since 2021.

Frank Commercial real estate agent Chris Harding sold four Cashel St commercial properties to a Christchurch businessman over the past two years.

The four properties ranged in price from $900,000 to $2 million and look set to deliver strong returns in the coming years.

“This buyer was getting in a bit ahead of time. He realised this was the place to be and went on a bit of a buying spree.”

Brown is the agent for two office buildings in the area, a 0.09ha property on the corner of Cashel and Barbadoes Sts and a 0.03ha property on the Hereford St and Fitzgerald Ave corner.

The Hereford St property will likely sell for about $1 million, Brown said, a “fair bit” higher than it would have several years ago, despite its heritage designation dragging down the price as it cannot be modified.

Brown would not share the expected price range for the Cashel St property ahead of its auction today, but said its value is likely to increase significantly in the next few years.

He said hospitality businesses in the area such as Smokey T’s restaurant, Scoundrel eatery and the Space Academy bar are also contributing to the development of area.