Auckland is New Zealand’s biggest city and accounts for over 500,000 of the country’s 1.8 million dwellings, Statistics NZ data shows. Real estate growth in the city have been impressive for over a decade now, making Auckland an obvious choice for investors.
However, property has become extremely unaffordable in the City Of Sails, reaching a shockingly high average value of $1,045,059 in June, according to QV. That imposing figure may be the nudge that Kiwis need to start looking elsewhere for their property investments.
Tauranga’s consistently one of the country’s best performing investment locations.
TAURANGA
Tauranga is consistently one of the country’s most sought-after investment locations. It’s no wonder, as QV data shows that the average property value in the city has increased by a staggering 14.6 per cent over the year ending July. That’s double the increase that Auckland experienced over the same period.
As if that wasn’t motive enough to look to sunny Tauranga for an investment – the average property value there is still only $687,364. The area is growing quickly and it’s local economy is strong, so now could be the best time to get in before it really takes off.
HAMILTON
For a long while, Hamilton had one of the fastest increasing average property values in the entire country. Auckland’s stunning growth is said to have spilled South over the Bombay Hills and swept Hamilton up in its wake.
Auckland’s stunning growth is said to have spilled South over the Bombay Hills and swept Hamilton up in its wake.
You would have been lucky if you got in before 2016 when QV data shows the average property value in Hamilton increased by over 20 per cent. The increases have since slowed to a more reasonable 9.5 per cent value growth over the past year (which is still more than Auckland’s).
Promisingly, Statistics New Zealand expects Hamilton’s population to increase at a rate similar to Auckland’s over the next decade, so these property values could keep increasing as demand stays high.
If that has you convinced, Real Estate Institute of New Zealand’s data shows that you can pick up the average house here for only $519,650 – so even first time investors should find it accessible.
WELLINGTON
The Windy City boasts a thriving local economy and has recently been crowned as the world’s most liveable city by Mercer. That may explain why QV’s data shows that the average property value in Wellington has increased by a whopping 16.2 per cent over the year.
With an average property price of $650,000, and a high likelihood of further growth in future, this could be one of the country’s best investment locations.
This fast growing lakeside city is known for it’s stunning mountain views and is beloved by tourists.
QUEENSTOWN
If you’re willing to venture further south to invest then Queenstown, one of our country’s most picturesque locations, is certainly worth considering. This fast growing lakeside city is known for its stunning mountain views and is always packed with tourists.
It’s no wonder QV has the average property value there increasing by almost 20 per cent over the past year (almost triple that of Auckland’s increase during the same period).
If you’re considering investing here you’ll need to be well financed – the average home value here is $1,071,995, which is surprisingly more than Auckland’s.
New Zealand boasts property investment opportunities everywhere. not just in Auckland. So if you’re looking to expand your portfolio consider these alternative locations for great property returns outside of the big city.
