JLL's Christchurch retail market dynamics provide property insights into shopping centre vacancy rates, rental trends, and investment activity in the South Island.
Insight
12 February 2026
Christchurch Retail Market Dynamics Q4 2025
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The overall vacancy rate decreased to 6.7% for 4Q25 from 8.1% for 2Q25. This comprises a CBD vacancy rate of 5.7% (-10bps as compared with 2Q25), and a Suburban vacancy rate of 3.3% (+30bps as compared with 2Q25). Despite increases in vacancy rates, road frontage shops around Cashel Street in the CBD continue to attract new tenants of various sizes, with both international and national brands showing interest.
Named Downtown, a 20-building complex by Peebles Group will be the first large-scale mixed-use development for Christchurch. Its collection of three to five storey buildings will contain hospitality outlets, shops, offices and apartments, all built around laneways and green spaces on a 4,800sqm city block. The site for the project is bordered by Cashel, Manchester, Lichfield streets and Huanui Lane.
Following consecutive quarterly increases since 3Q23, CBD prime average net rents have stabilised at NZD 925 per sqm p.a. since 3Q24. This rate spans from NZD 1,200 per sqm p.a. at the premium end to NZD 650 per sqm p.a. at the lower end. The upper end of CBD prime rents is expected to reach NZD 1,225 per sqm p.a. by 4Q26, mainly due to continuing demand from local, national and international retailers. This has assisted to keep incentives at 8.3%, after decreasing from 12.5% in 2Q24.
A significant transaction was the sale of 196 Roydvale Avenue, Burnside for NZD 10.60 million. This 2,000sqm property was purchased by Breachjet at an initial yield of 6.26%. Another notable transaction was the sale of The Welder, located at 20 Welles Street in the CBD, for NZD 8.70 million.