People vote with their feet first, then their dollars.
In Christchurch, three private projects keep winning that vote: Little High, The Terrace, and Riverside Market. They’re eternally busy because they’re different, they’re boutique and masterfully curated. By contrast, EntX never earned the same affection. It felt mass-produced.
We’ve seen that movie before.
This isn’t a hospitality story. It’s a ‘product-market fit’ story - and residential developers should pay attention.
Developers Richard Peebles, Mike Percasky & Kris Inglis who created Little High AND Riverside Market shared a vision. As did Anthony Gough with The Terrace. They didn’t try to please everyone.
Look around their developments and you won’t find be able to buy a Big Mac, a Happy Meal or a Footlong sandwich. The big brands were not allowed, and that must have been a tough decision when creating a food court! But their gamble paid off - big time.
Saying ‘no’ to convention and opting for locally owned, boutique offerings has created the enviroment we see today - busy on a daily basis! I know this, because I walk the dogs past Riverside and Little High regularly - they’re never not teaming with people.
The answer to their success can be found in a number of intricacies.
They curated:
Positioned centrally between Riverside and Little High - the big, behemoth. But size and familiarity doesn’t guarantee success (resi developers, take note).
Big anchor tenant, inward-facing plan, generic food court choices. It looked like something we’d seen before. It mirrored the struggles of nearby mall South City whose generic offerings have even stooped to 2 dollar shops and discount supermarkets.
*Although there has been some improvement in EntEx of late - and credit where credit is due - the Cambodian eatery is well worth a nudge IMO!
The trend mirrors a culture shift away from mass produced, low-price fast consumption (of many things; food, fashion, housing) towards a more tailored, crafted approach that appeals to a market segment with more discerning taste.
Translate this culture shift to new housing.
There’s a few developers out there creating real communities and beautiful products. Growcrott Freer and their 888 Colombo St development, hat tip to those boys, they build a really nice product and have vision on a large scale.
Brooksfield have nailed a ‘brand’ better than anyone in the city and their homes are incredibly picturesque, their cottage-style creations suit the traditional Christchurch look. Bringing a dash of Bridgerton and some much needed variety to the city’s new homes!
The guys mentioned above - a long with a few others - have taken pride in their creation and in a typical capitalist market, people have voted with their dollars. Their homes are popular with buyers and we genuinely like to see that, the city deserves good homes, from good developers with vision beyond the ‘plaster box’ city that we once looked like.
Why have they been a hit?
1) Design edges that work.
Whether it’s style of construction or layout of the micro-community, buyers are receptive to different and useful, not token.
2) Authentic materials, honest details.
Varied yet quality cladding types. Intricate joinery. Refuse the “plaster-box” look. People love detail and design, they will pay for a premium product if it’s delivered well.
3) Community Driven
Buyers can feel when a development is designed for belonging. Verandas, green spaces and communal areas.
4) Function that reflects living
Developers who respect how people really live, win. Generous floor plans, storage, garaging and parking, because Cantabrians have ‘stuff’ (snowboards, bikes, cars)!
5) Story and soul.
Buyers are drawn to homes that feel part of the city’s ongoing story, not just another tick-box unit.
We’ve currently over-supplied copy-paste two-bed boxes.
We’ve under-supplied quality homes, freehold homes that feel like Riverside for living - intimate, thoughtful, local (hence Rosefern’s change in direction to service this market).
The commercial sector proved that specificity beats generic. Housing needs the same courage: choose a customer, design ruthlessly for them, curate everything around their desires.
Say no to the mundane, safe options.
As a Resi-developer myself, I see feasibility studies on developments all of the time.
And I can tell you, density looks sexy on a spreadsheet. But ugly in real life.
Saying ‘no’ the the sexy spreadsheet and ‘yes’ to quality builds with longevity and a smaller forecasted ROI and TAM (total addressable market) feels strange at first - but look at the smart/brave commercial developers in the city and how they’ve done.
I bet it would have felt very easy having an internationally recognised McTennat in their foodcourts….
Different eventually wins - because people can feel it. They see that some bravery and bipartisan thinking has occurred. That you are ‘zigging’ while the rest of the market is ‘zagging’.
Keep tuned to see more of our ‘built different’ homes coming to the market…
- Ant
