It's official, the median price in Auckland now exceeds $1 million. All major news outlets have been shouting this from the rooftops of late, trumpeting about how lofty and imposing figure. What's more important is that it's representative of a rapid yet sustained increase in Auckland's house prices - an occurrence that has made property difficult to afford, even for some seasoned property investors.
Luckily several areas around New Zealand still offer capital gains and solid rental yields at an affordable price. Let's have a closer look at these up and coming property investment hubs, to help you decide which might be right for your next investment.
Whangarei
Whangerei property saw an average value increase of over 21.6 per cent for the year ending August 2016.
This picturesque seaside town may be overlooked due to its relatively small size, and its somewhat remote northern location. However QV data shows that it's a red-hot investment location, thanks to it's uncommon offering of both high capital gains and solid rental yields.
Whangerei property saw an average value increase of over 21.6 per cent for the year ending August 2016, and yet the average price still sits at a reasonable $429,885. This increase is high by any measure, and outstrips Auckland's over the same period by over five per cent.
Rental yields remain reasonable despite skyrocketing prices, and in suburbs such as Morningside or Mauna it's completely possible to find rental them nearing 6 per cent.
Tauranga
Tauranga is one of New Zealand's most livable seaside cities, a fact that home buyers have obviously taken note of. Increasing demand has pushed prices up by a whopping 28.5 per cent for the year ending August 2016. There are few signs of these increases slowing, so investors should certainly consider the area as an option.
Rent increases haven't quite kept pace with capital gains here, yet the average yield in Tauranga central still exceeds 4 per cent - a number considered solid in most Auckland suburbs.
Hamilton
Hamilton may just be the hottest property investment market in the country.
Perhaps as a result of Auckland's ever-increasing property prices, Hamilton has had an incredible year in terms of average value increases, outstripping almost every area in the country. In fact most areas in the city have experienced average value gains near 30 per cent over the year ending August 2016, and the North Eastern sector saw 31.1 per cent increases.
Predictably average rent has not increased at the same rate as prices, yet several areas such as Fairfield or Dinsdale still boast average yields exceeding 4.5 per cent.
That's almost double that of Auckland's average value gains - a figure that reveals Hamilton may just be the hottest property investment market in the country. The entry point for investors can also be incredibly low in Hamilton, as property in the central city boasts a median price of roughly $500,000 - half that of Auckland's.
Queenstown
The property market in one of New Zealand's premier ski-towns and tourist hubs is heating up and attracting property investors . Small wonder, as this southern beauty has recorded massive value gains exceeding 27 per cent for the year ending August 2016.
This southern beauty has recorded massive value gains exceeding 27 per cent.
While yields are a a little low, averaging below 4 per cent, property in this region might prove more convenient for investors located towards the southern end of the country.
It's abundantly clear that Auckland is no longer the only market that investors should be looking at. In fact, if the following year is anything like this one the opposite is true. and there's immense opportunities available for investors all over the country.
