From Queenstown to Christchurch, South Island communities are growing fast, but infrastructure is struggling to keep pace. Property Council’s South Island Regional Chair Tom Chatterton explains why investment follows certainty, and what needs to happen to build confidence across the region's property sector.
From Queenstown’s relentless population growth to Selwyn’s rapid expansion and Christchurch’s continued development as the South Island’s economic hub, high-growth communities in the South Island are facing a common challenge: infrastructure is struggling to keep pace.
For the property sector in these areas, demand remains strong, but unlocking future investment will depend on creating the conditions for growth and confidence. Property Council’s South Island Regional Chair, Tom Chatterton, recently spoke about creating an environment that will attract ongoing investment to South Island’s property sector.
“The South Island covers a large land area, with communities experiencing very different growth trajectories,” says Tom. “Areas like Selwyn, Christchurch and Queenstown are growing well above the national average, and that growth needs to be supported with the right infrastructure and planning.”
In areas where housing demand is outpacing the capacity of existing network and community infrastructure, investors can lose confidence.
"Investment follows certainty...Issues like affordability, consenting timeframes, infrastructure funding and delivery all influence whether projects proceed. Addressing these challenges will help instil greater confidence to invest across the South Island."
Regional deals can unlock growth
As a tourist mecca, Queenstown’s continued growth and visitor numbers are placing significant pressure on housing, transport and water infrastructure. The proposed Otago Central Lakes Regional Deal presents an opportunity for central and local government to take a more coordinated, long-term partnership approach to infrastructure investment, housing and economic development in and around Queenstown, providing greater certainty for communities and investors alike.
The Deal seeks to unlock innovative funding and financing tools to ensure that the costs of growth and high visitor numbers are shared fairly, reducing the burden on local ratepayers while enabling sustainable development. Details of the Deal are being finalised and are due to be finalised in October.
At this stage, there is no equivalent regional deal being developed for Canterbury, despite ongoing growth in Christchurch and Selwyn that continues to test existing infrastructure and funding models.
Planning for resilience in Dunedin
In Dunedin, the South Dunedin Future programme is leading the way in terms of planning for the long-term impacts of flooding, groundwater and sea level rise, and seismic risk, recognising that resilient infrastructure is just as important as new infrastructure.
As climate risks become a greater consideration for property investment, long-term planning will play an increasingly important role in shaping where and how development occurs. Dunedin City Council and Otago Regional Council are refining a range of scenarios, including options to protect, accommodate, retreat or avoid. Depending on the option, private property may need to be acquired to make way for stormwater infrastructure and other resilience measures. Shortlisted options are expected to be notified for public consultation in late 2026. When the time comes, the South Island Regional Committee intends to provide feedback on the proposals.
What’s next - working together
For the South Island Regional Committee, collaboration is critical to addressing challenges. A key priority for the Committee is strengthening relationships with local authorities, central government, iwi, the private sector and tertiary institutions to better understand shared priorities, identify barriers and reduce uncertainty.
The South Island Regional Committee is currently working closely with Selwyn District Council to share knowledge about the property sector and understand the pace of growth and scale of demand, especially in Rolleston. Alongside high-growth councils like Selwyn, the Committee is advocating to Central Government for local authorities to have more support to upgrade infrastructure, as well as implementing planning system, and the transition that will give effect to local government reorganisation.
“As a Committee, our role is to bring people together and foster genuine two-way conversations,” Tom says. “The better we understand each other’s perspectives, the better positioned we’ll be to create an environment that supports investment and delivers the infrastructure our communities need.”
To learn more about our advocacy work in the region or to seek the South Island Regional Committee’s help with a local or regional issue, please reach out to Senior Advocacy Advisor, Samantha Lay Yee.
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Author | Samantha Lay Yee
Samantha brings a sharp policy mind and deep understanding of urban development to her role as Senior Advocacy Advisor. With a Master of Laws specialising in environmental law, she has built her career at the intersection of government, regulation and city-shaping policy.
Prior to joining Property Council, Samantha held a senior advisory role at Kāinga Ora where she led a complex investment management work programme. She also brings policy experience from the Ministry for the Environment and the Department of Internal Affairs. In those roles, she developed regulatory advice for Ministers and contributed to nationally significant urban development reforms. Her experience spans cross-agency collaboration, stakeholder engagement and translating complex policy into clear, actionable insights.
Analytical, thoughtful and highly respected, Samantha combines strategic thinking with a practical approach – helping shape policy settings that enable better outcomes for New Zealand’s built environment.
