tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Thursday, May 19th, 8:45PM

News

rss
Latest Headlines

Interest in SuperCity falls

Ever-declining rental returns are one reason interest in Auckland property has dropped, new Realestate.co.nz data proposes.

Friday, July 1st 2016, 10:00AM

by Miriam Bell

Auckland’s average asking price hit yet another record high in June, which left it at $888,493, according to Realestate.co.nz.

But as prices continue to rise, theoretical yields for Auckland property investors continue to drop.

Realestate.co.nz CEO Brendon Skipper said investors buying a house at June’s average price of $888,493 would, theoretically, receive 3.18% yield, based on the average rent in Auckland.

This puts them at the bottom of the yields ladder across all 19 regions in the country and below the national average yield of 3.96%, he said.

“It suggests that Auckland investors are relying on future capital gains rather than rental returns or having to look at other property types when considering their investments.”

Investors looking for yields should look to the region Realestate.co.nz has identified as offering the best returns in the country: Otago – which has an average yield of 7.32%.

However, it seems that many property buyers are already looking away from Auckland.

Skipper said searches on realestate.co.nz for properties in the city have fallen.

The number of users searching Auckland houses “for sale” on realestate.co.nz fell by 19.33% in June, as compared to the same time last year.

Realestate.co.nz also measures engagement and it fell by more than a third across the Auckland region in June, as compared to June 2015.

The fact prices are at an all-time high mean they are almost out of reach for the average income earner, so it could be a turning point for Auckland, Skipper said.

“Nationally, the volume of traffic to our site is comparable across the country for this time of year.

“But it appears buyers are moving away from looking in the Auckland area in favour of other regions.”

For example, searches for properties in Northland, Hamilton, Tauranga and Queenstown were up significantly in June, as compared to the same time last year.

Skipper said it appears Aucklanders still want to stay in relatively close proximity to New Zealand’s biggest city.

“In terms of affordability they are being forced to move even further afield, or they are making lifestyle changes.”

But it is also possible that a greater degree of balance could be returning to many markets around the country.

Realestate.co.nz’s data shows that 15 out of the 19 regions recorded an increase in new listings year-on-year.

Skipper said the message seems to be getting through that, with the shortage of listings and the speed in which properties are selling, it’s a sellers’ market.

“While there is still a shortage of listings this is a positive sign for getting more equilibrium in the marketplace.”

« Housing debt risk growing - ANZFree Investment Property Showcase Events: Auckland, Wellington and Christchurch »

Special Offers

Comments from our readers

No comments yet

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
Subscribe Now

Mortgage Rates Newsletter

Daily Weekly

Previous News

MORE NEWS»

Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA 5.35 4.49 5.25 5.55
ANZ 5.54 5.15 5.85 6.15
ANZ Blueprint to Build 2.78 - - -
ANZ Special - 4.55 5.25 5.55
ASB Bank 5.35 4.49 5.25 5.55
Avanti Finance 5.45 - - -
Basecorp Finance 6.45 - - -
Bluestone 5.29 7.49 7.59 -
BNZ - Classic - 4.55 5.25 5.45
BNZ - Mortgage One 5.55 - - -
BNZ - Rapid Repay 5.55 - - -
Lender Flt 1yr 2yr 3yr
BNZ - Std, FlyBuys 5.55 5.35 5.94 5.99
BNZ - TotalMoney 5.55 - - -
CFML Loans ▲6.45 - - -
China Construction Bank 5.50 5.40 6.14 6.40
China Construction Bank Special - 4.45 5.19 5.45
Credit Union Auckland 5.95 - - -
First Credit Union Special 5.85 4.70 5.20 -
Heartland Bank - Online 4.00 3.85 4.70 4.84
Heretaunga Building Society 5.95 4.80 5.50 -
HSBC Premier 5.49 4.39 5.15 5.39
HSBC Premier LVR > 80% - - - -
Lender Flt 1yr 2yr 3yr
HSBC Special - - - -
ICBC 5.25 ▲4.29 ▲5.09 ▲5.35
Kainga Ora ▲5.43 ▲4.57 ▲5.58 ▲5.85
Kainga Ora - First Home Buyer Special - 2.25 - -
Kiwibank 5.00 5.55 6.19 6.39
Kiwibank - Offset 5.00 - - -
Kiwibank Special 5.00 4.55 5.19 5.39
Liberty 4.84 - - -
Nelson Building Society 5.95 4.95 5.85 -
Pepper Essential 3.44 - - -
Resimac 4.59 5.60 6.16 6.29
Lender Flt 1yr 2yr 3yr
SBS Bank 5.29 4.69 5.35 5.49
SBS Bank Special - 4.19 4.85 4.99
Select Home Loans 4.09 4.29 4.86 5.09
The Co-operative Bank - First Home Special - ▲4.19 - -
The Co-operative Bank - Owner Occ 5.45 ▲4.29 5.19 5.45
The Co-operative Bank - Standard 5.45 ▲4.79 5.69 5.95
TSB Bank 5.59 ▼5.14 ▼5.79 6.15
TSB Special 4.79 ▼4.34 ▼4.99 5.35
Unity 5.65 ▲4.80 ▲5.50 -
Wairarapa Building Society 5.24 4.55 5.20 -
Westpac 5.54 5.09 5.79 6.09
Lender Flt 1yr 2yr 3yr
Westpac - Offset 5.54 - - -
Westpac Special - 4.49 5.19 5.49
Median 5.45 4.55 5.25 5.52

Last updated: 19 May 2022 10:42am

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox  |  Disclaimer
 
Site by Web Developer and eyelovedesign.com