(* excludes Coromandel – skewed by short-term holiday rentals)
Table: ROI for rental properties by region – January 2016
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 calculation of average asking price vs weekly rental price, 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.
Realestate.co.nz offers buyers the shortest path to the perfect property. As the official website of the New Zealand real estate industry, Realestate.co.nz is dedicated to property and has the country’s most comprehensive selection of real estate listings online. The site presents more than 97% of all residential, commercial and rural properties currently marketed by real estate professionals. Focussed exclusively on people in need of property, Realestate.co.nz offers superior functionality, including accurate search, school zone data and a mobile app.
For media enquiries, please contact:
Rob Fitzgerald, Camino public relations Brendon Skipper, Realestate.co.nz
M: 027 501 7800 M: 021 542 607