New Zealand

Somewhat to our surprise, our latest survey of gross rental yields in New Zealand found that yields in Auckland and Wellington are still moderately attractive. Perhaps not surprising because apartments in both Aukland and Wellington still tend to be reasonably priced, at around US$3,650 per square metre.

The smallest sizes of apartment in Auckland still earn yields of 6% or above – 6.4% in the case of apartments of 55 square metre (sq. m.). In a developed economy like New Zealand’s, a yield above 6% isn’t bad.

Yields in Wellington are similar with smaller apartments yielding above 6%.

The relatively low yields we found in ChristChurch are likely to be related to the fact that our sample consisted of houses, which generally yield less than apartments.

We remind readers that these are gross rental yields, i.e., they are calculated on the basis of the offered rent, and are before vacancies, costs, repairs, refurbishments or any other expenses. Actually achieved yields are likely to be lower.

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