Gisborne, followed by Otago and Manawatu/Wanganui were the best performing regions for residential
rental property investment in January, according to an analysis of data by Realestate.co.nz, New Zealand’s
largest website dedicated to property. The analysis looked at every region in the country to identify which
offered the highest returns for would-be landlord investors.
Gisborne returned an impressive average of 5.78% on residential rental property investment in January,
based on an average asking price of $258,515. Otago returned 5.54%, and Manawatu/Wanganui returned
5.12%. The national average for rental property returns for the month was 4.10%.
Brendon Skipper, CEO, Realestate.co.nz says “The results will surprise some people. There are clearly some
very attractive rental property investment opportunities in some parts of New Zealand that don’t ordinarily
attract intense national media interest when it comes to property – based on our basic calculation of
average asking price vs weekly rental price, and excluding all external costs.”
“While data shows the best performing region for rental property is Coromandel, we believe its unusually
high average return of 9.88% is skewed by short-term holiday rental properties. Of greater interest for
potential investors are the significant rental opportunities that exist in quite diverse parts of the country, in
particular Gisborne, Otago, and Manawatu/Wanganui,” says Skipper.
The rental property ROI data was calculated by comparing the average asking price of properties for sale by
region across New Zealand in January 2016 with the average annualised rent in each location. The data
assumes 100% rental occupancy, and does not account for inflation, mortgage interest payments, property
management or maintenance upkeep fees.
Source: unconditional.co.nz, www.realestate.co.nz
* excludes Coromandel – skewed by short-term holiday rental
Table: ROI for rental properties by region – January 2016
Kind regards,
Duane Turner
Territory Owner and Inspector
Office: 09 811 8018
Mobile: 027 376 4806
duane.turner@abuyerschoice.com
www.waitakere.abuyerschoice.com
Waitakere & Surrounding Areas
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