Good rental returns in Wellington and Auckland
Residential Valuation Specialist | December 29, 2017
| Last Updated: Dec. 29, 2017 | |||||
| AUCKLAND - Apartments (size) | COST ($) | YIELD (p.a.) | PRICE/SQ.M. ($) | ||
| TO BUY | MONTHLY RENT | TO BUY | MONTHLY RENT | ||
| 50 sq. m. | 360,450 | n.a. | n.a. | 7,209 | n.a. |
| AUCKLAND - Apartments (bedrooms) | |||||
| 1 BR | 308,588 | 1,421 | 5.53% | n.a. | n.a. |
| 2 BR | 412,571 | 1,885 | 5.48% | n.a. | n.a. |
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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. Districts researched: Auckland: Auckland Central, Mt. Eden, New Market, Parnell and Ponsonby Source: Global Property Guide Definitions: Data FAQ See also: Update Schedule |
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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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