Auckland rents have increased by 28 percent in last 5 years, while property values in this region have sprinted ahead at 63 percent. In the regions, rent increases over the same period from August 2010 have also moved upwards by 20 percent. Property values outside of Auckland have also increased by the same amount – 20 percent.
Pedersens Property Management say their Landlords are acting responsibly with rent increases and have albeit reluctantly accepted the lower rental yields.
In the regions, property value growth pales in comparison to Auckland. In Wellington, Landlords have seen minuscule capital growth in their properties but they’ve been able to maintain good rental yields. Auckland property investors are desiring better yields so they are now investing in the regions all the while holding onto their high capital value properties in Auckland.
Trade Me Rent Price Index reports the median rent in Auckland in August 2015 was just shy of $500 at $499, while Christchurch was $429 per week. Wellington faired a lot better for renters with the median rent at just $380 per week. Interestingly, Wellington’s median rent in January 2015 was $440 per week so it’s actually dropped by $60 per week. Auckland’s renters must be a wee bit envious of their counterparts in Wellington.
BNZ Chief Economist Tony Alexander said recently: “Wellington offers good opportunities for investors”. While property value growth in Wellington is moving at a snail’s pace, and not likely to be the envy of anyone with property in Auckland; the rental yields are certainly healthy.
This blog article was written for PropertyBlogs by Mobilize Mail.