NZ’s three best property investment locations outside AKL

Written by Money Empire

June 24, 2019

The median price in every region of Auckland decreased from March to April 2019, according to Real Estate Institute of NZ data. Property in NZ’s biggest city is no longer a sure thing for capital gains in the short term. You may have to think outside the box when you invest. Be wary of your investment strategy, do you want to hold or flip?

These three fast-growing locations should be top of the list when you consider alternatives to Auckland.

  • Wellington

The median property price in Wellington increased by 9.8% over the year to April 2019 – the biggest increase of any major NZ city. Porirua, Upper Hutt and Carterton saw the largest median price increase during the same period (all over 15%): these are great spots to consider investing if you’re after capital gains.

The median price in the region is only $560,000 so property here should be very affordable for Auckland property investors. A rental shortage in the windy city has also pushed rent prices up over the last couple years, meaning many properties in the area have very attractive rental yields.

  • Dunedin

If you’re looking for high rental yields and solid capital gains, you need to consider Dunedin. The median price here has increased by 9.7% over the year to April 2019 and that growth is unlikely to slow down any time soon due to a property shortage.

Rental yields are high compared to most other cities in New Zealand, particularly in South Dunedin and St Kilda where the average return is close to 7%.

The city is also about to start the biggest ever hospital build in New Zealand history. This is expected to cost up to $1.4 billion as well as attracting hundreds of new workers to Dunedin, which could help push up rent and property prices.

  • Christchurch      

Christchurch’s property market was hit hard during the earthquakes and price growth has been slow. However, things have recently changed. As far as property investment locations go, this isn’t a bad spot!

Last year the median price jumped up by over 5% and several high quality apartment and townhouse developments have started popping up throughout the city centre. Visitor spending in Christchurch is also up by 12%, which makes Airbnb a particularly interesting option here.

While you’re unlikely to make huge capital gains right away in Christchurch, solid rental yields, a strong economy and fast improving housing stock make this a great place to invest for the long term.

Are you considering investing outside of Auckland? Give our team of mortgage advisers a call or send us a message to sort out your finance and run the numbers before you do.

Now is always a good time to invest in property! Read our article here.

You may also like…