Rental returns are poor in Auckland: range from 1.61% to 2.68%

Residential Valuation Specialist | March 14, 2022

Last Updated: Mar. 14, 2022
CENTRAL AUCKLAND - 3-BR HOUSES COST ($) YIELD (p.a.)
TO BUY MONTHLY RENT
Auckland Central 1,754,167 3,924 2.68%
Avondale 1,203,727 2,380 2.37%
Blockhouse Bay 1,418,667 2,392 2.02%
Epsom 1,820,317 3,112 2.05%
Greenlane 1,820,833 2,760 1.82%
Grey Lynn 2,107,833 3,140 1.79%
Hillsborough 1,246,143 2,488 2.40%
Mt Albert 1,647,150 2,564 1.87%
Mt Eden 2,234,192 3,044 1.63%
Mt Roskill 1,419,950 2,416 2.04%
New Windsor 1,498,700 2,396 1.92%
Onehunga 1,708,733 2,592 1.82%
Royal Oak  1,779,222 2,876 1.94%
Sandringham 1,960,286 2,628 1.61%
Three Kings 1,420,900 2,732 2.31%
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

Property prices. Typically, it costs around USD 1,203,727 to USD 2,234,192 to buy an apartment (three-bedroom) in Auckland. Three-bedroom apartments are by far the attractive property type in New Zealand because of the increase of 3-bedroom average weekly rental sales and also influenced by purchasable new builds.

Property rents. Rental rates in Auckland are relatively higher than in rents in other cities. Average rent costs from USD 2,380 to USD 3,924 per month.

Property returns. Gross rental yields on apartments in Auckland are low, with rental yields ranging from 1.61% to 2.68%.

Wellington, the capital city of New Zealand. attracts many expats too. This city is prone to earthquakes but most buildings here are earthquake-proofed, especially the new builds. One of the expat-friendly neighborhoods in Wellington is Mount Victoria where most residential properties are located. And perhaps the more city-centre like is Te Aro. There are multiple restaurants, pubs and shopping malls in this area. Last 2019, we found that rental yields on 1- and 2-bedroom houses in Wellington are around 5.5%.

 

Residential transaction costs for New Zealand are relatively low.

 

Comments

Be the first to comment on this article!

Login or Register to submit a comment!
In order to promote open and spam-free conversations, Global Property Guide moderates commetns on all articles. You can expect that your comment will be published within 24 hours.