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Last Updated: Sep 09, 2009

Remains attractive at 6.78%

Last Updated: Sep. 09, 2009
AUCKLAND - Apartments COST ($) YIELD (p.a.) PRICE/SQ.M. ($)
TO BUY MONTHLY RENT TO BUY MONTHLY RENT
50 sq. m. 156,250 1,054 8.09% 3,125 21.08
70 sq. m. 250,390 1,441 6.90% 3,577 20.58
70 sq. m. 571,900 2,544 5.34% 4,085 18.17
WELLINGTON - Apartment
50 sq. m. 194,400 1,070 6.60% 3,888 21.40
80 sq. m. 342,960 1,538 5.38% 4,287 19.22
125 sq. m. 501,375 2,221 5.32% 4,011 17.77
CHRISTCHURCH - Apartments
90 sq. m. 207,900 880 5.08% 2,310 9.78
155 sq. m. 305,815 1,060 4.16% 1,973 6.84
275 sq. m. 572,000 1,433 3.01% 2,080 5.21
120 sq. m. 371,640 2,311 7.46% 3,097 19.26
Districts researched:
Auckland: Auckland Central, New Market, Mt. Eden, Parnell, Ponsonby, Remuera
Wellington: Wellington Central, Khandallah, Oriental Bay, Mt. Victoria, Thorndon, Kelburn, Roseneath, Te Aro,
Christchurch: Fendalton, City Centre, Cashmere, Sumner, Ilam, Merivale
Source: Global Property Guide Definitions: Data FAQ See also: Update Schedule

Property investment in New Zealand seems attractive.  Prices in Auckland have remained pretty much unchanged from the previous year, averaging at US$3,596 per square metre (sq.m.). Average yields in the city are around 6.78%.

A 50 sq. m. apartment sells for around US$250,390, and yields an average of  8.09%. For the property investor, it is going to be hard to find much better returns than that – in the context of historically strong economic growth, relatively high immigration, and a stable country – what else could someone looking for a property investment want?

Apartments in Wellington are more expensive at US$4,062 per sq.m., but have lower gross rental yields of around 5.77%.

The prices of houses we surveyed in Christchurch range from US$207,900 for 90 sq. m., properties up to  US$572,000 for 275 sq. m. properties. Gross rental yields in Christchurch were even lower at 4.08%, so Christchurch seems is unattractive for property investment.

 

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