Christchurch student housing offers scale

A new student village in Christchurch offers commercial investors the opportunity to assemble a portfolio of purpose-built residences in a university market where enrolment growth is increasing demand for accommodation.

Commercial real estate investment firm Mainland Capital, which manages more than $1 billion in property assets is developing Ilam Mews at 265 Riccarton Road, comprising 155 unit-titled residences and more than 450 beds, 700 metres from the University of Canterbury (UC).

Construction is underway, with the first stage scheduled to open for the 2028 academic year.

Bayleys Projects general manager of residential, Gavin Lloyd, who is marketing the development says purchasers can discuss bulk acquisition terms across a range of dwelling sizes and configurations.

“The mix allows investors to select homes that suit their budget, preferred tenant market and return objectives. Buying within one village offers scope to coordinate letting, maintenance and management, while individual titles preserve the option to sell residences separately, in groups or as a complete portfolio further down the track.”

The project is offered to the market as UC’s expanding student population places pressure on housing. Student headcount reached 27,121 in 2025, while international student numbers increased 11 percent over the year.

That pressure has continued into 2026. UC’s new 283-bed Tupuārangi hall was fully occupied when it opened it February. Despite the additional capacity, the university reported that demand continued to exceed supply.
Mainland Capital executive director, Ben Bridge, says Ilam Mews addresses a different student segment: later-year students, postgraduates and international students seeking independent living close to campus.

"Christchurch is benefiting from continued growth across its tertiary education sector, but accommodation has not kept pace. Students moving out of halls have had very few options available to them, and what has been missing is institutional quality, purpose-built accommodation close to campus.

“Our assessments identified an opportunity to deliver those features within a professionally planned village, offering a clear alternative to conventional private rentals.”

The approximately 1.5ha village will offer fully furnished studios through to six-bedroom terrace homes, with a 220sqm communal pavilion, landscaped courtyards, controlled access and security infrastructure.

The dwelling mix has been independently assessed against student preferences, reflecting strong demand for larger four-, five- and six-bedroom configurations.

Bridge says the design draws on established student housing models in the United Kingdom and Australia.

“Shared homes and smaller residences serve different preferences and price points. Bringing them together with study spaces and communal facilities gives student practical reasons to choose Ilam Mews, and owners a differentiated rental offering.”

An initial head lease will operate for approximately two years, with appointed operators overseeing leasing and resident management during the village’s establishment. Owners will subsequently assume responsibilities for their residences, while the body corporate continues to administer communal facilities.

Projected gross returns range from 5.40 to 6.00 percent, depending on the dwelling type.

Lloyd says the opportunity gives bulk purchasers a defined market against which to assess their investment.

“Proximity to campus, the mix of homes and the cost of operating them are central to the rental proposition. Ilam Mews allows investors to build a portfolio around those fundamentals, with flexibility over both its composition and future sales.”