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Speaker 1: Now christ Church has so many Airbnbs that the market

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Speaker 1: is actually struggling to keep up. It sounds like it's

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Speaker 1: absolutely swamped by them. According to the analytics business AIRDNA,

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Speaker 1: the average per night yield for Airbnbs and christ Church

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Speaker 1: fell slightly last year, and that's probably because the number

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Speaker 1: of available airbnb properties in the city went up by

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Speaker 1: nineteen percent in twenty twenty four, demand only went up

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Speaker 1: by five percent. Mike Blackburn is a property market analyst

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Speaker 1: and with US high Mike Hiever, basically a case of

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Speaker 1: supply and demand right, too many airbnbs.

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Speaker 2: There, look absolutely. Christ Church is currently building almost seventy

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Speaker 2: to eighty percent of all new residential construction is part

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Speaker 2: of a multi unit development, and the vast majority of

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Speaker 2: these things are being marketed to investors, particularly in that

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Speaker 2: airbnb market. And of course, the underlying story just goes

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Speaker 2: back to what you were saying about Eden Park, is

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Speaker 2: that everyone's talking about the new stadium when it's open

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Speaker 2: and the amount of traffic that it's going to drive.

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Speaker 2: But we've been hearing this story from developers for several

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Speaker 2: years and the number of units that are being delivered

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Speaker 2: into that market just continues to increase.

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Speaker 1: What are you saying people are building future Airbnbs around

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Speaker 1: the stadium?

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Speaker 2: Are they absolutely That's exactly how they're being marketed.

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Speaker 1: And Mike, are they actually building houses with a view

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Speaker 1: to turning it into an Airbnb, nothing else like that's

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Speaker 1: the primary point of building this particular house.

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Speaker 2: That's correct. There are several developers in christ Church, and

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Speaker 2: of course the thing is Heather is that in addition

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Speaker 2: to tracking building consent numbers and population growth, one of

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Speaker 2: the things that I look at is the median size

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Speaker 2: of dwellings that are being delivered. I'm seeing some units

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Speaker 2: and christ Church that are that are being sold into

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Speaker 2: the market at thirty nine square meters with no car park.

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Speaker 2: And these are units that are part out of twenty

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Speaker 2: or thirty units in a block, and they're specifically being

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Speaker 2: built and being marketed and sold as AIRB and B units.

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Speaker 1: I see. Okay, Now that doesn't seem to me the

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Speaker 1: smartest move because it doesn't leave you many options, does it.

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Speaker 1: I mean, who wants to I don't know how many

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Speaker 1: people actually want to rent or own a property that

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Speaker 1: doesn't have a car park.

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Speaker 2: Well, again, if you were, well, there's two parts to

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Speaker 2: the answer to that firstly, following the earthquakes, christ Church

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Speaker 2: lost most of its significant hotel accommodation and so therefore

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Speaker 2: over the last seven eight nine years we have been

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Speaker 2: short of hotel accommodation, and so that's one of the

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Speaker 2: reasons why airb and bs have flourished so rapidly in

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Speaker 2: christ Church. But in what I've been seeing for the

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Speaker 2: last couple of years is that the rate in which

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Speaker 2: we're building these things, and this was supported by the

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Speaker 2: air DNA data that you talked about, is that the

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Speaker 2: number of AIRB and B units is increasing significantly faster

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Speaker 2: than the night stay accommodation. And unfortunately, Heather, I think

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Speaker 2: there's going to be some tears.

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Speaker 1: Now, tell me why you're not feeling as optimistic as

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Speaker 1: the developers are about the pull of Takahava Stadium.

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Speaker 2: Well, look, it's simply been the fact that we have

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Speaker 2: built so many of these things for such a period

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Speaker 2: of time. One of my market commentary pieces that I

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Speaker 2: wrote a couple of months back was entitled how many

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Speaker 2: is too many? And when you simply look at this

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Speaker 2: from it from a business point of view, notwithstanding when

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Speaker 2: I talk to real estate agents and property managers that

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Speaker 2: they're actually seeing a decrease in the actual night stay accommodation,

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Speaker 2: and as a result, we're also seeing a drop off

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Speaker 2: in the actual amount of revenue that AIRB and B

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Speaker 2: operators cannect charge And that's just simply market supply and demand.

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Speaker 2: The more units that there are given a limited night

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Speaker 2: amount of night's stay accommodation, everyone at the end of

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Speaker 2: the day is going to see a lower return on investment.

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Speaker 1: Yeah, now listen, Mike, it's good to talk to you.

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Speaker 1: I really appreciate your time. That's Mike Blackburn, property market analyst.

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