Good rental returns in Wellington and Auckland

Residential Valuation Specialist | November 29, 2019

Last Updated: Nov. 29, 2019
CENTRAL AUCKLAND - 3-BR HOUSES COST ($) YIELD (p.a.)
TO BUY MONTHLY RENT
Auckland Central 1,054,400 2,984 3.41%
Avondale 509,943 1,534 3.63%
Blockhouse Bay 587,284 1,553 3.19%
Epsom 833,645 2,119 3.06%
Greenlane 690,560 1,850 3.23%
Grey Lynn 1,042,216 2,163 2.50%
Hillsborough 616,092 1,622 3.18%
Lynfield 559,271 1,572 3.39%
Mt Albert 598,487 1,683 3.39%
Mt Eden 883,673 2,041 2.78%
Mt Roskill 570,352 1,595 3.37%
New Windsor 617,047 1,578 3.08%
Onehunga 581,456 1,706 3.54%
Ponsonby 955,392 2,615 3.30%
Royal Oak 842,432 1,736 2.49%
Sandringham 755,565 1,756 2.80%
Three Kings  638,445 1,861 3.52%
Westmere 897,920 2,382 3.20%
All yields are gross - i.e., before taxes, repair costs, ground rents, estate agents fees, and any other costs. Net yields (what you´ll really earn) are typically around 1.5% to 2% lower.
Source: Barfoot & Thompson Definitions: Data FAQ See also: Update Schedule

Last year, we found that the best rental returns available on apartments in Wellington had moved slightly ahead of Auckland. This may reflect a jump in prices of larger properties in Auckland, which would tend to reduce the rental returns. "Foreign buyers are mostly drawn to the Auckland area", explains Bill Sandston, a real estate lawyer.

In Wellington, the capital of New Zealand, rental yields on 1 and 2 bedroom houses are now around 5.5%. Apartments, and particularly smaller apartments, tend to earn more - last year we found returns of from 6.88% to 8.43%

In Auckland, last year we found that rental yields on apartments ranged from 6.09% to 7.18%.

Property transaction costs analysis in New Zealand are rather low, and in regional terms, the total costs of buying and then selling a property are very attractive.

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