Rental returns are poor in New Zealand: ranging from 2.30% to 5.72%

Residential Valuation Specialist | December 06, 2022

Last Updated: Oct. 10, 2022
AUCKLAND - Apartments COST ($) YIELD (p.a.)
TO BUY MONTHLY RENT
Auckland Central
1-Bedroom $207,465 $990 5.72%
2-Bedroom $314,852 $1,147 4.37%
3-Bedroom $505,449 $1,799 4.27%
Auckland (all locations)
1-Bedroom $320,474 $1,012 3.79%
2-Bedroom $421,114 $1,259 3.59%
3-Bedroom $722,472 $1,777 2.95%
4+Bedroom $955,237 $1,934 2.43%
Auckland avg. Rental Yields 3.98%
WELLINGTON - Apartments COST ($) YIELD (p.a.)
TO BUY MONTHLY RENT
Wellington (all locations)
1-Bedroom $253,006 $776 3.68%
2-Bedroom $385,131 $1,417 4.41%
3-Bedroom $480,711 $1,687 4.21%
4+Bedroom $840,541 $2,249 3.21%
Wellington avg. Rental Yields 3.88%
DUNEDIN - Apartments COST ($) YIELD (p.a.)
TO BUY MONTHLY RENT
Dunedin (all locations)
1-Bedroom $256,370 $490 2.30%
2-Bedroom $278,663 $1,003 4.32%
3-Bedroom $342,755 $1,226 4.29%
4+Bedroom $431,927 $1,516 4.21%
Dunedin avg. Rental Yields 3.78%
CHRISTCHURCH - Apartments COST ($) YIELD (p.a.)
TO BUY MONTHLY RENT
Christchurch (all locations)
1-Bedroom $266,959 $513 2.30%
2-Bedroom $356,131 $1,081 3.64%
3-Bedroom $417,436 $1,271 3.65%
4+Bedroom $484,315 $1,449 3.59%
Christchurch avg. Rental Yields 3.30%
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: Global Property Guide Definitions: Data FAQ See also: Update Schedule

Get updated rental yields data for 75 countries

Property returns. Gross rental yields on apartments in Auckland are low, with rental yields ranging from 2.43% to 5.72% with an city average of 3.89%.

Wellington, the capital city of New Zealand. attracts many ex-pats too. This city is prone to earthquakes but most buildings here are earthquake-proofed, especially the new builds. We found that rental yields are best on 2- and 3-bedroom apartments. The city´s average rental yield return is still poor with it being 3.88% and ranging from 3.21% to 4.41%.

Things don´t look better in Dunedin or Christchurch as well, with the former bringing rental yields from 2.30% to 4.32% and the latter 2.30% to 3.65%.

 

Residential transaction costs for New Zealand are relatively low.