>> SIMPLE TIPS FOR LANDSCAPING A TENANTED PROPERTY

SEPTEMBER 2023

RAGS TO
RICHES THE
INVESTOR’S
INSPIRING LIFE
STORY SMALL
THE UP-AND-UP
INFLATION
INVESTIGATION
STUFF
WHAT'S HAPPENING IN
THE APARTMENT MARKET?

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22 32

CONTENTS SEPTEMBER 2023

FEATURES UP FRONT REGULARS

16 PROFILE 02 FROM THE TEAM 48 YOUR SHORT- 62 SUBSCRIBE
Jeremy Field’s investment TERM RENTAL
story can’t fail to inspire. 04 NEWS Crafting great guest 63 FROM THE
experiences with PRESIDENT’S DESK
22 APARTMENTS 10 EXPERT ADVICE Eric Hammond.
The market continues to be 64 AROUND THE
unpredictable. 12 YOUR HOUSE 49 PROPERTY REGIONS
INSIGHTS
28 INFLATION 15 YOUR RATES Greg Watson on the 65 NZPIF
Sally Lindsay reviews our negative landlord narrative. SPOTLIGHT –
inflation/OCR climate. MARLBOROUGH
COLUMNS 50 YOUR REVIEW
32 DIY PROJECT Stevie Waring talks 66 NZPIF
SPOTLIGHT –
Spring’s great for
landscaping, writes 46 YOUR retirement travelling
dreams. ROTORUA
Caleb Pearson. DEVELOPER
Anthony Corin on skills 51 YOUR LAWYER 68 RENTAL &
38 RENOVATION needed for success. Andrew Logie with the SALES STATISTICS
Mary-anne Tobin with
a step-by-step kitchen 47 YOUR benefits of BTR.
80 FINAL WORD
remodel. ACCOUNTANT
Mark Withers with tips to
54 REGIONAL help kids into property.
REVIEW Taranaki's
diverse market.
FROM THE TEAM

THE WONDERFUL
POWER OF NZ PROPERTY INVESTOR
MAGAZINE PUBLISHER
Opes Media Limited
PROPERTY 2/236 High Street,
Christchurch, 8011

EDITOR
Many investors we profile have risen above a Joanna Mathers
tough start in life to achieve success, thanks E joanna@propertyinvestor.co.nz

to an educated approach to property. May the ART DIRECTOR

Sally Fullam
magic continue. E sally@propertyinvestor.co.nz
roperty investing can provide people with a way to escape financial

P hardship. Many of the investors we have profiled in our pages have

experienced this – from tough starts, they have managed to tap into
the power of property and make a better life.
This month’s profile, Jeremy Field, is a case in point. Raised by an unwell,
single mother in Christchurch, his early life was beset with troubles. He was
ACCOUNT MANAGER /
ADVERTISING SALES
Stephanie Bryant
M +64211658018
E stephanie@propertyinvestor.co.nz
injured in a truck accident and lost a much-loved family member as a teenager
WRITER
but managed to rise above these woes and carve out a brighter future. Sally Lindsay
Jeremy used the BRRRR method to amass an impressive property portfolio;
he’s now also a freshly minted real estate agent. We loved hearing his story and SUB-EDITOR
we’re sure you’ll love reading it. Mike Deacon
Our lead story this issue explores the apartment market. Apartments exist
in their own property microcosm to a great extent, but the dual forces of high SUBSCRIPTIONS
interest rates and tough regulations are also affecting them badly right now. Jill Lewis
In Auckland, anything that requires a mortgage is taking an age to sell, T 0800 888 643
E subs@propertyinvestor.co.nz
but leasehold and remedial apartments (cash sales) are being hoovered up
by investors. Wellington is seeing owner/occupiers outbidding investors for
apartments, but Christchurch is bucking the trend (as it often does) with
investors keenly bidding on new developments.
Word on the street is that “investors are waiting to see the results of the
election” before investing in apartments (who isn’t), so it will be interesting to
see what happens later in the year.
We also explore inflation, interest rates, and the OCR. Sally Lindsay talks to
a range of experts to see how the property market is being impacted by these
forces and whether we are likely to see relief in the next 12-18 months. Economist
Tony Alexander says it’s expected that 2024 will see interest rates head
To subscribe go to
downwards, but establishing exactly when is anyone’s guess.
www.propertyinvestor.co.nz
There’s an election next month (in case you haven’t noticed) and our next
issue will be dedicated to exploring the four main parties’ policies around
housing and, more specifically, property investment. We are keen to see what CONTRIBUTORS
comes out of our research and will bring you the results, so make sure to keep an Shane Campbell, Anthony Corin,
eye out for this issue when it comes out in early October. Kelvin Davidson, David Faulkner,
Hope you are enjoying the warmer weather – long may it continue! Matthew Gilligan, Eric Hammond,
Sue Harrison, Andrew Logie, Kris
All the best and happy reading. Pedersen, Caleb Pearson, Mary-anne
Tobin, Stevie Waring, Greg Watson,
From the team
Ryan Weir, Mark Withers.

2 NZ PROPERTY INVESTOR
 UP FRONT NEWS

profit in the second quarter of this year

had been owned for a median of 8.4
years. By contrast, for loss-making sales
in the three months to June, the median
hold period was just 1.8 years.

THE BREAKDOWN
CoreLogic chief economist Kelvin
Davidson says the share of property
sales for a profit, and the fall in the size
of those profits, continues across the
country, whether the figures are broken
down by property type (eg apartments
vs houses) or owner type (investors or
owner-occupiers).
From only 0.5 per cent of stand-
alone house sales being made below
the original purchase price in the first
quarter of last year, that figure has now
risen to 6.2 per cent. It’s the highest
since the first quarter of 2016 or, in other
words, relatively fewer house sellers are
making a gross profit than has been the
case for about seven years.

PROFIT SEARCH BECOMES

For apartments, 26 per cent of
sales in the second quarter of this

MORE OF A CHALLENGE
year were made for a gross loss. In
mid-2021, that figure was only about
5 per cent, and the latest result is the
highest since 28.1 per cent in the third
quarter of 2013.
Properties are moving of the housing market boom. Davidson says it’s important not to
The number of properties sold for a get carried away by that. “First, the
but the number sold for a gross profit dipped to 93.1 per cent in the proportion of apartment loss-making
gross profit has dipped, second quarter of this year. While that sales has been much higher in the past,
remains a high figure – reflecting that eg 45-50 per cent in the early 2000s
a CoreLogic report shows. long hold periods means most sellers still and about 2008-10. Second, the raw
CoreLogic’s latest Pain and Gain Report make gains – it’s lower than 94.1 per cent number of loss-makers is still relatively
shows gains have dropped, down to in the first quarter of this year, and well low, at only 78 deals in the second
a median profit of $290,000 – well down on the 99.3 per cent peak in the quarter of this year. (The figure of
down on a peak profit of $440,000 fourth quarter of 2021. 28.1 per cent in 2013 equated to almost
in the last quarter of 2021 – the height Properties that were sold for a gross 140 deals.) Q

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 National’s Commitments
for Landlords and Tenants.
National will end the war on landlords.

Phase back in full interest Take the bright-line test

deductibility for rental properties. back to two years.
Reinstate the ability to end End the near automatic roll
tenancy with 90 days’ notice ďŒÐīďåťŘÐÌĴÐīĉĴÐĊ­ĊÆðÐĮ
without cause. to periodic tenancies.

Read our plan at national.org.nz Authorised by J de Joux, 41 Pipitea St, Wellington

NNP0011_R
UP FRONT NEWS

wanted access to credit and didn’t want

to have to answer a lot of intrusive
questions to get it.

‘UNPLEASANT PROCESS’
And that’s precisely what’s happened,
says FSF executive director Lyn
McMorran. “It’s restricted access to credit
and made it an unpleasant process for
most borrowers.”
Banks enquired into borrowers’ social
life, hobbies and, for example, how
much was spent on parking. Until recent
tweaks to the act, borrowers found every
single transaction was analysed and
questioned.
Bayly says National will maintain
tight restrictions on predatory lenders,
but “significantly reduce” the scope of
changes made by Labour to the CCCFA,
which have “proven unworkable”.

A PROMISE TO STOP
Although Bayly says he can change
the rules, it might be more difficult to
transform the culture within banks. “The

INTRUSIVE QUESTIONS CCCFA rules are now sort of semi-

embedded in banks.”

National says it will Under the law, banks go further CULTURAL CHANGE
re-visit the grilling than ever before in checking they are “That cultural change is going to be
lending responsibly and can’t just rely on quite an issue. I think we can make the
borrowers endure over information given.  changes, but actually driving those
their spending habits Changes to the CCCFA in 2021 changes through the banks is going to
required banks to break down applicants’ be difficult,” he says.
when applying for spending habits before approving loans, He wants to take the CCCFA back to
a loan. going as far as requesting explanations the original 2020 65-pages of regulations
Significant changes to the Credit for deviations as little as $5. focused just on high-cost lenders. “What
Contracts and Consumer Finance Act At the time the changes were made we want to do is repurpose it towards
(CCCFA) will be made under a National- the Financial Services Federation, what was parliament’s intent.
led government. Financial Advice NZ, banks, the NZ “Instead of having a prescriptive
National’s Commerce and Consumer Banking Association and others told approach, we would rather say here
Affairs spokesman Andrew Bayly says it the government the rules were going is the boundary we want you to work
will stop banks asking intrusive questions to be too restrictive. Most consumers within. Now, you work out what’s right
of borrowers’ spending habits when they did not want them, and most were not for your specific business. If you get it
apply for a housing loan. in vulnerable circumstances; they just wrong, we’ll be after you.” Q
 T H E 2 0 2 3

Market
Update
Webinar
Series
With Matthew Gilligan

To be able to make good business, finance, and property investment decisions, it’s
important to keep up with what’s happening in the market.
However, it can be time consuming, especially if you are not an expert in interpreting tax law,
property market cycles, planning rules, and the latest borrowing criteria.
To help you get up to speed, GRA have been running a series of six webinars where Matthew Gilligan
interviews experts to give you the low-down on what’s going on and how best to manage it.

UPCOMING RECORDINGS
‘ELECTION SPECIAL’ OF PREVIOUS
WEBINARS WEBINARS
Matthew and guest speakers will discuss what the Videos of the previous webinars in this series can be
parties propose regarding tax, property investment, found on the GRA website and are FREE to access.
the RMA, and social policy.
VIEW HERE:
www.gra.co.nz/resources/tax-and-property-videos
DAVID SEYMOUR
(ACT)
14 September Economic update Property
7:00pm and property zoning
strategy and RMA
with Tony with Simon
Alexander O’Connor
NICOLA WILLIS &
PAUL GOLDSMITH
(NATIONAL)
A Tax Finance
26 September update update
7:00pm with with
Anthony Kris
Lipscombe Pedersen

BOOK FOR THESE WEBINARS HERE: FOR MORE INFORMATION ABOUT THE ENTIRE
www.gra.co.nz/events/market-update-webinar-series MARKET UPDATE WEBINARS SERIES, VISIT
www.gra.co.nz/events/market-update-webinar-series

Tel: +64 9 522 7955 | Email: info@gra.co.nz | www.gra.co.nz GILLIGAN ROWE

+ ASSOCIATES LP
 UP FRONT NEWS

HOUSE PRICES REACH AN EVEN KEEL

15 per cent from their peak in November discretionary spending on durable goods
After a stormy time home 2021 to March 2023. such as household appliances over
values appear to be “Stronger net immigration, alongside recent quarters.
a peak in interest rate expectations, has The committee says, however, the
enjoying calmer waters occurred at the same time as house earlier-than-expected stabilisation in
and some banks are prices have started to stabilise and are house prices is assumed to support
now assumed to have reached a trough household consumption over the next
predicting a lift next year. earlier than expected.” three years, somewhat offsetting the
The RBNZ’s monetary policy committee dampening impact of overall lower
says house prices appear to have CASH FLOW house prices.
stabilised and its projection for house Higher mortgage rates have, however,
prices to lift by about 3 per cent next increased debt servicing costs for INTEREST RATES
year is reasonably balanced, remaining households, but the lagged impact of Lower housing demand has also reduced
around estimates of sustainable levels. recent increases in mortgage rates has home building over the past year.
Westpac is predicting house prices yet to impact household cash flow fully, Higher interest rates have made
will rise by 8 per cent over the next year. the committee says. borrowing for housing more expensive,
While the RBNZ had previously This reflects the yield on total and lower house prices – particularly
expected house prices to continue falling mortgage lending which is expected to when construction costs are high – have
through the back part of this year, prices increase by 1 per cent over the coming made residential housing development
have instead flattened off in recent 12 months as borrowers roll onto higher less attractive.
months. It says the predicted rise in prices interest rates. The number of new residential
will help support household spending. Lower house prices also tend to lead building consents has fallen over
The committee says higher interest to reduced spending by households recent quarters, indicating a substantial
rates have contributed to lower demand as they feel less wealthy and have less slowdown in residential building activity
for housing, with house prices falling borrowing power, contributing to lower ahead, the committee says. Q

 



 

  
Tradesmen covering Properties brought Healthy homes
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NO HALLUCINATIONS The launch of Tama saw hundreds • What do I do with my former tenant’s
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NZ PROPERTY INVESTOR 9
 THE IMPACT OF
TAX CHANGES
MATTHEW GILLIGAN
Matthew Gilligan is a
property investor, developer
and tax adviser. He is
managing director of
ON INVESTORS
chartered accounting firm
Gilligan Rowe & Associates, Amid rising living costs the interest non-deduction
where he heads the
specialist property and rules are starting to hurt.
asset planning divisions.

Are the changes to the tax my tenants’ rottweiler, in fact they

KRIS PEDERSEN
Kris Pedersen of Kris Q deductibility rules having a real socialised through the fence. My tenant
Pedersen Mortgages is a effect on investors yet and how supplied my email address to the
commentator on property
and finance. His team sources
can investors prepare for the next round neighbour and would/could have already
top finance strategies. of tax bills? supplied my phone number. The email
Phone 09 486 4719, www. address was supplied mid-2022. The
krispedersenmortgages.co.nz
The short answer is “yes” – the neighbours also sent an invoice for
A interest non-deduction rules are $1,850. Do I need to pay this as I was
affecting investors. At present not consulted?
MARK WITHERS only 50 per cent of residential rental
Mark and his team specialise
property interest can be deducted as an Fencing issues between
A
in advising on property-
related transactions, expense, and this is hurting investors who neighbours are a common area
valuation and restructure are already paying higher interest costs of tension which usually come
services, and tax planning.
Withers Tsang and suffering negative cash flow from the within the ambit of the Fencing Act 1978.
phone 09 376 8860, increase in finance cost. Your neighbour is only entitled to compel
www.wt.co.nz
When you add inflation on food and you to contribute to the cost of removal
living costs to this equation, it’s a terrible and construction of a new fence if they
RYAN WEIR burden and completely unfair. It will served you a notice in the form provided
Ryan is managing be even worse as the non-deduction in the Fencing Act. This notice must:
director and franchisor of
Propertyscouts NZ. He’s rules are fully phased in over the next specify the boundary on which the fence
deputy chairman of the 18 months or so (no interest will be will be erected; specify the proposed
RPMA and is passionate
about the property deductible from April 1, 2025 unless work, to allow you to understand the
management industry, a property qualifies for exemption). nature and cost, and the materials to be
particularly, raising
industry standards.
To mitigate the adverse effects, some used; and estimate the cost. Having failed
investors have already changed their to serve you with such a notice, they are
strategy to investing in properties that probably not entitled to compel you to
SHANE CAMPBELL are exempt from the interest limitation pay the $1,850 or contribute any amount
A partner in Wynn Williams’
Dispute Resolution Team, rules (eg social housing or new builds) to the cost of removal or construction.
Shane specialises in complex and I expect more will follow.  We suggest writing to your neighbour
commercial disputes. He acts
on property disputes, product However, in my view, the best saying you will not be paying the invoice
liability, defective buildings solution is to vote National or ACT in the given their failure to follow the provisions
and professional negligence
- including claims for and upcoming election, and these bad tax of the Fencing Act.
against lawyers, architects, rules will be reversed.  - Shane Campbell
accountants, engineers, valuers
and property managers. - Matthew Gilligan
In 2019 we bought a
ERIC HAMMOND A neighbour has removed the Q 7,000m2 piece of land that used
Eric is the founder and
managing director of The Q existing adequate fence to be a farm paddock and has
Stay Hub and Hammond & Co between the two properties and had a sleepout added and trees planted.
Property Management.
His team specialise in both
erected a new 1.8m wooden one. They It is not a main home and is only used at
short-term and long-term have not spoken to me before or since weekends. We were thinking of building
rentals with a portfolio
the demolition/construction. My tenant a new house on the property in the
spanning both central and
greater Auckland. says the reason for the fence is breeding future, but circumstances changed and
puppies. There has never been a problem we now want to sell. Will the property
with either the neighbour’s two dogs or attract the bright-line test?

Do you have a burning property investment question you need an answer

for? Whether you are just starting out in property investment, or an
experienced investor, email expertadvice@propertyinvestor.co.nz
to have your questions answered.
 EXPERT ADVICE

Step one is to determine if the valuation through a specific portal What are the potential
A property is residential land. (Valocity or CoreLogic) rather than you Q upcoming GST changes for
Residential land includes land approaching a valuer direct. the short-term rental
that has a dwelling on it or where there is - Kris Pedersen industry and what do we need to do
a plan to build a dwelling. This includes as property owners if we aren’t
bare land able to have a dwelling built. I’ve received a complaint from currently registered?
There are exemptions for business Q my tenant about dampness,
premises and farmland. To qualify for including condensation on While there are discussions
the farmland exemption the land must windows and mould appearing on A around a potential tax change
be capable of being worked as an clothing. The property underwent a for the short-term rental
economic farming unit or agricultural Healthy Homes compliance inspection industry, this change has not yet come
business. The fact that your land used to last year and was approved. My previous into effect and whether it will or not
be a farm paddock would not be tenants did not raise concerns about depends entirely on who gets into
sufficient to trigger the exemption as the dampness. Given these mixed signals, government in the October election.
land is too small to be an economic I’m uncertain about the appropriate The tax bill will only pass into law under
farming unit. course of action. Could you provide a Labour government. The National Party
To qualify for the main home guidance on how to address this opposes this new tax policy and, if
exemption the land would have had to situation effectively? elected, it will not proceed.
have a building developed on it and you The proposed tax change applies to
would have had to have lived there as Although your property received Airbnb, Uber, and other gig economy
your main home, so I agree there is no A Healthy Homes compliance operators and will require them to levy a
main home exemption available. The sign-off last year, it’s important 15 per cent GST charge on all bookings
bright-line moved from two years to to bear in mind that maintaining from April 2024, and also return GST to
five years on March 29, 2018, so it compliance requires ongoing attention. applicable property owners.
would seem your property is subject to Sudden issues such as a blocked drain If you are already registered for
the five-year bright-line. It would will result in non-compliance with Healthy GST because you earn over $60,000
be subject to bright-line tax if sold Homes standards, potentially making per annum in taxable income streams
within its five-year bright-line period. your property more susceptible to (not including your salary if you are an
This period runs from the date you were dampness. To start, ask your tenant if employee), then you do not need to take
registered on the title as owner through they’ve observed any issues, particularly action in the event it passes. While GST-
to the date you enter an agreement to during rainfall. Then, thoroughly inspect registered owners who already pay tax
sell the property. The best bet to avoid your property for any potential sources won’t see a direct impact to their income,
bright-line tax would be to sell the of moisture ingress, like blocked drains, those who are not registered could see
property only after the bright-line period downpipes or gutters. Rectify any issues a reduction in cash flow. With that said,
has expired. promptly to prevent further dampness the market as a whole is likely to increase
- Mark Withers issues for your tenant and maintain prices across the board to compensate
Healthy Homes compliance. for losses.
I want to borrow about $30,000 After that, spend some time with As it stands, if you are not GST
Q on top of a $300,000 mortgage your tenant and educate them over registered and you rent your property
on an investment property I managing dampness effectively. on the likes of Airbnb for $230 per night
bought last year. It’s for a minor dwelling Encourage them to ventilate the including GST, you will receive the full
to add value to the property. Should I get property by opening windows and using $230. If the new rules come into effect
the house revalued and borrow against it extractor fans. Condensation on windows next year, you would earn just under
from the same or another lender, or do occurs when warm, moist air meets cold $220. Of the $230, roughly $30 would be
you have other suggestions? glass surfaces. taken as GST. A flat-rate scheme would
Suggest your tenant uses a Kärcher be applied so 8.5 per cent of the 15 per
You will have to use the same Window Vac to mop up condensation. cent GST charge would be returned to
A lender unless you have other Consider providing the window vac as unregistered property owners (in this
property to borrow against as a chattel so future tenants can use it case $17). The remaining $13 would go to
two banks won’t lend on the one too. In the future, when inducting new the IRD. This means your income could
property. In regard to valuation, I would tenants, it’s good practice to focus on drop by around 6.5 per cent unless, as
recommend getting a conditional empowering them with knowledge we anticipate, market prices increase
approval from the bank prior to getting about maintaining a warm and dry home, to compensate.
it valued as it gives the bank a chance to as well as recognising and promptly Again, these tax changes will only
run a desktop valuation and potentially communicating indications of moisture come into play if Labour wins the
avoid you incurring the cost of getting it ingress. We can’t take for granted that all upcoming election and the tax changes
valued. Note also that in most cases tenants know these things by default. have not yet come into effect.
banks will want you to order the - Ryan Weir - Eric Hammond Q

Tel: 09 522 7955 | Email: info@gra.co.nz | www.gra.co.nz

chartered accountants specialising in property, tax and trusts

YOUR HOUSE

INVESTORS RETURN
TO THE MARKET
Price falls are slowing, with rises seen in some areas leading
investors back to the market, Sally Lindsay has the latest.

he winter chill has been taken down 7 per cent; and Wellington, down DOWNTURN SLOWING

T off the housing market, latest

REINZ data shows.
Nationally, house sales
lifted 1.6 per cent, to 4,903 last month
compared to last year and were up 10.8
8.9 per cent. It has not been all bad news
though. Prices were up in Marlborough, by
0.3 per cent; Southland, 1.2 per cent; and
Central Otago, up 4.6 per cent.
REINZ chief executive Jen Baird says
The bottom of the housing market
beckons, with the nation’s three-month
rolling rate of decline dropping for the
fourth straight month.
The QV House Price Index for July
per cent in Auckland, but on a month-on- while sales counts are up the number of shows the average home dropped in
month basis sales were 15.6 per cent. listings is falling. “More competitive prices value by 1.5 per cent nationally over the
Across the regions, sales were up year- and a ‘get in now’ attitude is bringing July quarter. This is a smaller rate of
on-year in Waikato by 9.4 per cent, Bay of more buyers out ahead of this year’s decline than the 1.8 per cent in June, and
Plenty 13.7 per cent, Nelson 3.9 per cent, election,” she says. considerably lower than the 3.5 per cent
West Coast 31 per cent and Canterbury New listings dropped 17.6 per cent and 3.4 per cent quarterly declines in
10.1 per cent. year-on-year, from 7,470 listings in July April and May respectively. The national
At the end of July, the total number of last year to 6,156 last month, and a 1 per average now sits at $888,999.
properties for sale was 23,090, down 12.4 cent decline compared to June from That figure is 10.2 per cent less than
per cent, or 3,268 properties, from 26,358 6,218. New Zealand, excluding Auckland, July last year, but just 0.3 per cent lower
year-on-year, and down 6.4 per cent listings dropped 19.5 per cent year-on- than at the end of June. Nationwide four
month-on-month. year from 4,778 to 3,847. Baird says the of the 16 main urban areas QV monitors
At the same time, the median sale looming election and ongoing tighter had growth in the quarter – Hamilton
price dropped 4.9 per cent year-on- economic conditions are seeing sellers (0.1 per cent), New Plymouth (0.4 per
year to $770,000 across the country. In holding back. cent), Christchurch (0.8 per cent) and
Auckland, it dropped below $1 million to The national median days to sell Invercargill (0.8 per cent).
$990,000. remained relatively stable at 48. The Home values continue to fall in
The median sale price also took a West Coast had the shortest median Auckland (-1.5 per cent), with the average
tumble in the regions year-on-year, with days to sell at 28, while Tasman had the price at $1,243,610, which is 11.8 per cent
Waikato down 8.9 per cent; Bay of Plenty, longest at 80. lower than at the same time last year;

12 NZ PROPERTY INVESTOR
 WHAT’S DRIVING
HOUSE PRICES?
HOUSE PRICES: DOWN
Nationwide, July’s median house price dropped
4.9 per cent year-on-year to $770,000 across the
country. In Auckland it dropped below $1 million to
$990,000. The median sale price also took a tumble
in the regions year-on-year, with Waikato down
8.9 per cent, Bay of Plenty, down 7 per cent; and
Wellington, down 8.9 per cent. Sales lifted 1.6 per
cent, to 4,903 last month, compared to last year and
were up 10.8 per cent in Auckland, but on a month-
on-month basis sales were 15.6 per cent. New listings
dropped 17.6 per cent year-on-year, from 7,470
listings in July last year to 6,156 last month, and a
1 per cent decline compared to June from 6,218.
OCR: UP
The Reserve Bank’s official cash rate stays at 5.5
per cent after July’s Monetary Policy Committee
meeting. The RBNZ says it is at the end of its
tightening cycle.
INTEREST RATES: UP
The BNZ has lifted mortgage rates for the second
time since the Reserve Bank’s May pause on OCR
increases. It has raised its six-month rate from
7.85 per cent to 7.99 per cent, and its four and
five-year rates from 6.89 per cent to 7.09 per cent.
Westpac, meanwhile, has dropped its two-year fixed
term to 6.69 per cent.
BUILDING CONSENTS: DOWN
Stats NZ data show new building consents have
dropped on an annual basis by 12 per cent or 44.5
new homes in the June year. In June the seasonally
adjusted number of new dwellings consented rose
3.5 per cent, after falling 2.3 per cent in May. Stand-
alone houses had the biggest drop, falling 22.6 per
Hamilton was one of four main cent or 5,415 fewer homes consented.
urban areas QV monitors MORTGAGE APPROVALS: DOWN
which had growth in the Total monthly new mortgage commitments were $5.7
quarter – up 0.1 per cent. billion in June, $0.2 billion or 3 per cent down from
$5.9 billion in May and 6.1 per cent lower than in June
last year. Lending to investors fell 5.1 per cent to $0.9
Wellington (-1.7 per cent), with the average property types, like small to medium billion in June, movers and owner occupier lending
fell 2.2 per cent to $3.3 billion and to first home
price at $824,100; Nelson (-2.4 per cent); development sites, for example, which buyers it fell 2.6 per cent from May to $1.4 billion in
Whangarei (-1.4 per cent); Queenstown have taken significant hits to their values June. There were 15,498 new mortgages taken out,
(-1.3 per cent); and Rotorua (-0.5 per since the downturn began and are likely down 4.7 per cent from 16,258 in May. In comparison
cent). The latter two had increases in to continue to decline as demand for to June last year, the number of new mortgage
commitments rose by 3.7 per cent from 14,952. The
last month’s index, reflecting the level of these properties has dropped away.
average value of new mortgage commitments across
heightened volatility in the market. all borrower types rose to $366,900 in June, up 1.8
QV operations manager James Wilson CONSENTS PLUNGE per cent from $360,400 in May. The average value
says it wouldn’t be unusual if home values Statistics NZ data shows 9,888 new has fallen 9.4 per cent from $405,000 in June 2022.
continue to yo-yo across the country, homes were consented in the June RENTS: UP
mainly as a result of declining sales. quarter, down sharply by 20 per cent Stats NZ stock measure shows rents rose 0.4 per
“While investors never removed compared to the second quarter of cent in May compared with April and were up
4.1 per cent for the year.
themselves from the market entirely, they last year.
have adopted more cautious attitudes On an annual basis Statistics NZ data IIMMIGRATION: UP
in recent times. Now there are growing show building consents down 12 per Annual net migration from all countries rose to
86,800 in the year to June – made up of a net gain
numbers competing for entry-level stock cent or 44.5 new homes from the June of 121,000 non-New Zealand citizens and a net
in areas they view as offering good value 2022 year. migration loss of 34,800 New Zealand citizens. It
for money.” The monthly stats show the was the biggest net migration loss since the year to
He says there are still also some seasonally adjusted number of new April 2013.

NZ PROPERTY INVESTOR 13
YOUR HOUSE

dwellings consented rose 3.5 per cent, June, up 3.37 per cent or $20.95 on the
after falling 2.3 per cent in May.
‘There are same time last year.
Stand-alone houses had the biggest growing numbers Barfoot & Thompson’s property
drop, falling 22.6 per cent or 5,415 fewer management general manager Samantha
homes consented in the year to June than [of investors] Arnold says the change is in keeping with
the previous 12 months. Townhouses and the pace of increases over the previous
unit consent numbers fell 7.1 per cent.
competing for two years, which ranged between
In June there were 3,402 new homes entry-level stock 2.97 and 3.35 per cent.
consented, comprising: 1,551 townhouses, Two different parts of the city stood
flats, and units; 1,515 stand-alone houses; in areas they view out in the data drawn from more than
190 retirement village units; and 146 17,000 rental properties across the region:
apartments, meaning a serious decline in
as offering good The Franklin/rural Manukau area with
building work is on the horizon. value for money’ a 6.59 per cent rise in its average weekly
rent and the Manukau city centre with a
SALES STILL SLOW JAMES WILSON 5.86 per cent rise.
Auckland’s average sales price retreated On average, it’s the most affordable
a little, to $1,067,070, down 2.8 per cent area to rent in Auckland, second only to
in July compared to June, Barfoot markets in Auckland were either flat or central city apartments.  
& Thompson data show. higher in July, with most of the other main In the city centre, the apartment
July’s average was just 1.7 per cent centres down a marginal 0.2 per cent or market only regained its strength last
lower than the previous three-month 0.3 per cent in the month. quarter as workers, students and tourists
average. For the wider Wellington market, returned at scale following the pandemic.  
The median price for the month at values increased by 0.3 per cent, the city’s Previously the market had been down
$950,000 was down 4.5 per cent when first rise since February last year. and stagnant for several years, with price
compared to June. Shifting national fundamentals changes hovering below 1 per cent until
“For the third month in a row, sales appeared to be mirrored across most of finally rebounding to 3.46 per cent at the
hit more than 700 and prices remained the main centres, with Hamilton, Tauranga, end of March 2023. 
stable, indicating the market has found Christchurch and Dunedin each recording This quarter, it’s up a further 5.86 per
a natural plateau and we can expect an a fairly modest drop in average property cent, or $30.03 on the average weekly
uplift in activity as we approach spring,” values last month, of either 0.3 per cent or rent.
Peter Thompson, Barfoot & Thompson’s 0.2 per cent. City centre apartments now attract
managing director says. Auckland’s drop was more significant an average weekly rent of about $542.16,
Agents sold 727 homes during July, at 0.6 per cent, but that weakness was compared to a pre-pandemic average of
up just more than 2 per cent on June, and not universal for the super city as a whole, $520.64 in late 2019.
19 per cent higher than July last year. instead occurring in only one or two of its
At 1,213, there was a steady, if slightly sub-markets, Kelvin Davidson, CoreLogic’s INVESTOR LENDING
reduced flow of new listings coming chief property economist says. The share of new mortgage lending to
onto the market. This number was down The July result was notable in investors in July totalled $939 million,
about 4 per cent on June, but more than Wellington for being the first increase in down from $990 million in May and
3 per cent higher than the same month average property values (0.3 per cent) also down from $1,054 million in June
last year.   in 17 months. Among the sub-markets, last year.
“At month’s end, the agency had 4,076 Kapiti Coast was flat in July, as was Lower During the peak of the market in June
available listings on its books, which is the Hutt. But Upper Hutt rose by 0.2 per 2021 investors borrowed $1,428 billion, the
lowest number since January last year, but cent, Wellington city by 0.4 per cent, and latest Reserve Bank figures show.
there has been a significant increase in Porirua by 0.6 per cent. The share of new mortgages borrowed
enquiries from potential vendors.  “Reaching a trough in the downturn by investors fell from 16.9 per cent in May
“During July, 217 of all homes sold were does not mean there’s likely to be a to 16.5 per cent in June. Annually, the
under $750,000, and at the other end of sudden snapback to widespread and share to investors has fallen from 17.4 per
the scale, 10 properties sold for in excess strong gains in house prices and it will cent in June 2022. The overall lending
of $3 million,” Thompson says. be unsurprising if some areas record figures to investors for the first six months
further falls in the coming months, while of this year are the lowest for a first half
SOME PRICE RISES others stabilise or see mild increases,” year, since 2014.
CoreLogic’s latest House Price Index Davidson says. LVR restrictions were eased at the
(HPI) shows there are house price rises Generally speaking, the “next phase” beginning of June and investors are slowly
in some parts of the country and values of the cycle could still be relatively muted, returning to the market.
not dropping as fast over the rest of given affordability remains stretched, Anecdotal evidence from real estate
New Zealand. mortgage rates aren’t set to drop anytime agencies is they have noticed an uptick
The HPI dropped by 0.4 per cent soon, and also in light of the prospect in investors wanting to buy before
in July – the smallest decline since the of caps on debt-to-income ratios for the election as they believe if the
0.3 per cent fall-off in January and a mortgages early next year. government changes house prices will
significant drop from June’s 1.2 per cent starting rising the next day, although
decrease. The annual decline in the HPI is RENT RISES this is not a view shared by economists,
10.1 per cent. The average weekly rent for an Auckland who say it will still take some time for the
Values in five of the seven main sub- home reached $642.28 at the end of market to turn around. Q

14 NZ PROPERTY INVESTOR
YOUR RATES

IS THERE STILL PUFF IN

THE INTEREST ENGINE?
Just when it looked like we had hit the top of the
cycle there’s signs suggesting the crest of the hill has
yet to be reached, writes Kris Pedersen.
he Reserve Bank has indicated competitive the market is with ASB CASH CONTRIBUTIONS

T it still believes the job has

been done and a cash rate
of 5.50 per cent is enough,
which they retained at the most
recent review on August 16. They
making less than half the interest rate
margin that CBA makes on home loans
in Australia.
ASB was the first to pull back on
the cash contributions and has
In the last few days ANZ has pushed up
rates like that of ASB and at the same
time increased some of the deposit
rates they have on offer. ANZ is being
more competitive than ASB over cash
did, however, acknowledge that there deliberately decided to grow their contributions they will offer to attract
is a chance of one further increase home loan book at a lower rate than new business.
being required. other banks. With mortgage volumes still being low
At present the market is pricing in It is unlikely the New Zealand across the banking market, borrowers
about a 40 per cent increase of this public will have much sympathy given should use this opportunity to review their
happening in the first half of 2024 if ongoing media commentary here about lending to ascertain if better rate options
inflation does prove more stubborn to bank profits. exist than their current lender is offering. Q
contain than expected.
And expectations are starting to differ MORTGAGE 6 1 18 2 3 4 5
FLOATING RC
among banks. Westpac and LENDER MTH YEAR MTH YEARS YEARS YEARS YEARS
ANZ economists are leaning towards ANZ 8.64 7.79 7.79 7.49 7.39 7.09 6.89 6.89 -
thinking an increase may be required, ANZ Special - 7.19 7.19 6.89 6.79 6.49 - - -
although Kiwibank chief economist
BNZ - Classic - 7.39 7.19 6.95 6.79 6.49 6.49 6.49 -
Jarrod Kerr is adamant that enough has
BNZ - Std,
been done. 8.49 7.99 7.79 7.55 7.39 7.09 7.09 7.09 -
FlyBuys
Recent analysis from the Reserve BNZ - 8.49 - - - - - - - -
Bank showed that the average New TotalMoney
Zealand mortgage sits at a rate of about Co-operative 8.15 7.49 7.49 7.39 7.25 6.99 6.99 6.99 8.15
5.3 per cent, with this expected to rise Bank - Standard
to circa 6.2 per cent by the middle of HSBC Premier 7.94 6.44 6.44 6.59 6.69 6.79 7.29 7.39 -
next year. HSBC Premier - - - - - - - - -
LVR > 80%
This does signal a lot of additional
pain still to hit the market as this HSBC Special - - - - - - - - -
will pull further discretionary money Kiwibank 8.5 8.15 7.99 - 7.79 7.39 7.19 7.19 8.55
from households’ budgets, which will Resimac - 8.59 - 8.49 - 7.99 7.59 7.39 7.29 -
unfortunately mean increased business LVR < 80%
failures in industries such as retail SBS Bank 8.74 7.69 7.69 7.45 7.24 6.49 7.09 7.19 -
and hospitality. SBS Bank Special - 7.19 7.19 6.95 6.74 5.99 6.59 6.69 -
TSB Bank 9.44 7.99 7.79 7.79 7.59 7.29 7.29 7.29 -
COMPETITIVE MARKET Westpac 8.64 7.79 7.79 7.55 7.29 7.09 6.89 6.59 -
ASB has had their mortgage rates
Westpac Offset 8.64 - - - - - - - -
significantly above the rest of the
Westpac Special - 7.19 7.19 6.95 6.69 6.49 6.29 5.99 -
market until recently. The CEO of the
Commonwealth Bank of Australia, Median 8.5 7.22 7.25 6.95 7.2 6.49 6.74 6.59 8.12
Matt Comyn, who is ASB’s parent, The interest rates specified in this table were accurate on 21 August 2023. Interest rates are subject to change without notice. Different
fees and charges apply to each loan depending on the mortgage lender. Seek expert advice to determine the mortgage lender that is
has been commenting on how right for you and your circumstances. A Disclosure Statement is available on request and free of charge. Data provided by tmmonline.nz

NZ PROPERTY INVESTOR 15
PROFILE JEREMY FIELD

16 NZ PROPERTY INVESTOR
 TURNING AROUND
A DIFFICULT START
You can’t fail to be motivated by investor Jeremy
Field’s life story as Joanna Mathers finds out.
Photography Kurt Langer

eaders often comment that after that: things were rough.”

R our profile section is their

favourite. It provides them
with ideas and insights for
their own property path – other people’s
stories spark the flame of inspiration.
Things were to get worse. “When
I was 14 or 15, I was having a hard time
due to my accident the couple of years
before. I had a burst appendix around
that time too, so spent three weeks in
Jeremy Field’s story is nothing if not hospital unable to eat. It was a pretty
inspiring. Raised by a solo mum who dark period.
spent time on a sickness benefit, Field’s “I’d stopped going to school and
early life was ridden with troubles. But eventually the police spoke to me about
his determination and grit has seen him it. I went back till I turned 16 and not
become a successful investor and he’s long after left without any qualifications.”
just launched a career in real estate: now Field’s cousin James was living with
in his mid-30s, he’s reaping the rewards him during this period. A few years older
of his actions. than Field, he was a sounding board and
often “gave me a hard time about my
EARLY CHALLENGES intelligence”. Field was bright and his
Christchurch born and bred, Field “didn’t cousin knew it – but he wasn’t making
have an easy childhood”. His mum was the most of his brains.
physically unwell and later struggled Then another tragedy struck. James
with alcohol abuse, his dad was absent. was run over by a truck, aged 18, and
At age 12, he was run over by a truck and killed. It was, understandably, a huge
lost the top of his foot – years of skin trauma for Field.
and muscle grafts followed. But it also provided him with the
Field has lived through some “While others were playing, I was impetus to do something with his life. “It
challenging times but he has learning to walk again,” he shares, was at that point I realised that I needed
used them as motivation. bravely. “I became extremely angry to sort my sh*t out.”
 PROFILE JEREMY FIELD

PROPERTY BEGINNINGS he managed to pay off most of the admits. “But I managed to buy it for
When Field was 17, he began an mortgage and save a reasonable amount $130,000 and after all expenses, managed
apprenticeship as a printer. He started of money that he could use when he to get around $100 a week for it.”
earning money and considering how returned to New Zealand. He would go Managed by a local property
he could move out of the cycle of on to buy his mother out of her part of manager, Field says the property hasn’t
deprivation he’d been used to. the house too; she moved to Waimate. caused too many issues.
Field explains that his paternal “Someone was using an outdoor
grandfather (who he rarely saw) was a INVESTMENT patio heater to warm one unit when
property investor, and a successful one. INSPIRATION I puchased though. But I got heat
He’d not spent enough time with him to While he was making good money in pumps put in and now they are all up to
draw any inspiration from his experience, Australia, his heart wasn’t in printing. Healthy Homes standards.”
but you could imagine there would have He had a passion for fitness and helping It’s now being renovated and he
been an inkling around the potential others, so he decided to become a anticipates the valuation will be between
of property. personal trainer. He saved enough in $500,000 and $600,000, with rental
And when Field turned 20, he started Australia to fund his study and in 2013 he returns being in the realm of $1,000
soaking up all the information he could moved back to New Zealand to embark per week.
about property investment. “This was on a new career.
before YouTube was really big, so I was It was during this period that he met PORTFOLIO PROGRESS
reading loads of books and magazines, a property investor (a fellow fitness After Field graduated from his personal
and watching DVDs on the subject.” fanatic) who would inspire him to invest training course, he set up a gym in the
Another tricky family situation offered in his first investment property. garage of his home, and started taking
him an opportunity to invest. As he Field explains: “I started to hit him up on clients. He would end up working as a
explains, his mum and grandmother “had about how to invest, and then started personal trainer for five years.
a bust up”. Field’s mother owned half of hanging out with him. He ended up taking He was still living in his original family
the house he grew up in, and wanted to me to a mortgage broker who was able to home, but had met his (now wife) Donna
extricate herself from his grandmother, establish how much I could borrow.” by then, and she was living with him.
who owned the other half. So he decided His research (and the advice of his Inspired by his investing, she wanted
to buy it and made his first step onto the friend) revealed that Invercargill was to get herself on the property ladder
property ladder. a city on the up. After exploring the as well. So, using her KiwiSaver, she
Shortly after this purchase Field options, he came across a 1910-era villa purchased half of the family home.
moved to Australia, where the money that was converted into three one- This enabled Field to use the equity in
was better. He also studied print industry bedroom units. the home for another rental, this one in
management via correspondence. And “It wasn’t in great condition,” he Christchurch, in 2019.

18 NZ PROPERTY INVESTOR
From age 20 Field began
soaking up as much
knowledge as he could find
on the subject of property
investment. A time before
YouTube, it was all books,
magazines and DVDs.
 PROFILE JEREMY FIELD

property in the Christchurch suburb of

Bromley, on the market for $298,000.
While under contract (for $292,000)
he discovered the “popcorn” ceilings
contained asbestos – and managed to
shave an extra $15,000 off the price,
buying for $277,000. After a $35,000
renovation, he put it back on the rental
market, for just under $500 a week. He
estimates its value at around $550,000.
While he was doing the renovation
on the Bromley property, he was also
able to purchase a new townhouse in
Waltham for $342,000.
It was being sold by an investor,
who needed a quick turnaround.
The two-bedroom, two-bathroom
townhouse would bring in $500 a
week, but sadly, as it was two years old
when purchased, it did not qualify for
interest deductibility.
Field made one final purchase, with
his now wife, in 2021 just as the market
was heating up – a house and land
package in Halswell.

CAREER CHANGE
While Field’s investments were going
well, he was becoming increasingly
frustrated with his work situation. He was
working 60-plus hours: forced back to
printing during the week, with PT in the
weekends, to service his debts.
So, he made the decision to train as a
real estate agent. Through his properties,
he had cashflow behind him, and Donna
worked, so together they could support
his studies. He's has now completed the
training and works for Trinity Real Estate
in Christchurch.
The market is slowly picking up, he
Field’s property investing has says, and investors are moving back
inspired a change of career. He 'If you can't into the market. But his own investing is
now works with Trinity Real Estate
in Christchurch.
make a move on hold for now, his preferred strategy
of buy, renovate, rent, refinance,
then keep repeat (BRRRR) is difficult given the
It was a 1970’s home in Islington, comparatively high cost of housing and
which had been tenanted by people
educating the removal of interest deductibility.
who “trashed the place. Everyone who yourself till So he’s happy to sit with the four
viewed it was totally put off.” investments he currently owns and see
The sellers wanted $355,000 for it you can' what happens post-election.
(it was 2019 and the market was yet to He's keeping his hand in the game
peak) but he cheekily offered $306,000. though; project managing work for some
The final price was $311,000. Christchurch and Waimate, visiting her "flippers", and keeping his Instagram
Although it looked awful, just a and renovating her house to add value. page, @the.no.bs.kiwi.property.guy,
cosmetic renovation was needed – new Sadly, she passed away in 2020, and updated with all his projects.
paint, carpet, flooring, and a new deck – as the only beneficiary, Field inherited His advice for people who want to
and the rent instantly went up by $80 a her house. get on the property ladder is "if you
week. The estimated value of this home After a “messy legal period”, and can't make a move then keep educating
is now around $600,000. paying off money his mother had owed, yourself till you can". He also says people
In 2018, Field’s mum had been he was left with around $150,000. need to rethink where they buy their first
diagnosed with cancer. In between his This he would put towards another property. “I started in Invercargill – you
work commitments, he would spend investment property. need to buy what you can afford. You
a lot of time commuting between He managed to find a three-bedroom just have to start somewhere.” Q

20 NZ PROPERTY INVESTOR
GET READY FOR
TOMORROW’S
MARKET TODAY
Being Build Ready is about doing the groundwork now, so you
can move forward with your new build when the time is right.
As end-to-end experts, we will guide you through every step
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Visit ashcrofthomes.co.nz
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7-10 September 2023
Auckland Showgrounds, Greenlane
THE UPS AND DOWNS
OF APARTMENTS
The apartment market is unpredictable at
the best of times, but this year it has been
tougher than even 2008’s global financial
crisis and what has been selling has turned
on its head, Sally Lindsay writes.

22 NZ PROPERTY INVESTOR
 FEATURE APARTMENTS

wo years ago, Auckland’s apartment market

T was in a slump with students and workers on

visas fleeing back to their own countries as
the pandemic swept the globe.
The market is improving and is a lot better than it
was two months ago, says City Sales sales manager
Scott Dunn. “But hindsight is a funny thing and I
would say this year has probably been the hardest
year since I have worked in real estate.”
Although his time in the industry doesn’t stretch as
far back as 2008, Dunn says agents in his office and
investors, who have been in the game for 20 years,
say this is the worst it has been.”
By this, he means the whole property sector, not
just apartments – property sales, listing numbers and
buyer inquiry have been slow.
At City Sales, March was good, April slowed,
May was ground zero, June perked up and July has
been healthy.

NOT WHAT IS EXPECTED

What has been flying out the door at the agency are
leasehold and remedial apartments. “In any normal
market buyers steer well clear of these apartments
because they are difficult to sell. In this market they
are going out the door swiftly because they are cash
purchases. Banks don’t lend on them.

Buyers who don’t need a

mortgage are still in the
market for apartments says
City Sales’ Scott Dunn.

NZ PROPERTY INVESTOR 23
FEATURE APARTMENTS

CITY SALES
ABOVE AND LEFT Two-bedroom apartments
at Auckland CBD’s Volt are selling for around
$100,000 less than a year ago.
RIGHT There are currently more tenants
than apartments in Auckland.

"Conversely, any listing we have that

requires a mortgage is hard to sell
because mortgages are expensive,”
Dunn says.
He says the market rises and falls
on interest rates. Before the OCR and
interest rates lifted, the easiest sale in the
apartment market was a two-bedroom
unit with a car park at the $700,000-
CITY SALES

900,000 mark.
“Now people who need to borrow,
say $700,000, on one of those, and with
interest rates at about 7 per cent, it’s
costing them a fortune. So they are now
hard to shift, but anything which doesn’t
require a mortgage is selling well.”

INVESTORS BACK
AGAIN SLOWLY
Investors are starting to hesitantly come
out of the woodwork after sitting on the
fence for two years over the removal of
tax deductibility on mortgage interest
payments and high interest rates,
Dunn says.
“They are starting to get a renewed
CITY SALES

sense of confidence, but I think it will

take until after October’s election, and if
there’s a change of government, before
NZ PROPERTY INVESTOR 25
FEATURE APARTMENTS

we start really seeing them coming back PROJECTS FEW AND

into the market.” ‘In the country’s FAR BETWEEN
He says investors feel like they are
being crucified not only with high
biggest city In the country’s biggest city apartment
rents have sprung back to pre-Covid
interest rates, tax deductibility, but also apartment rents levels. Rents dropped 20 per cent during
healthy homes compliance and the Covid and half of City Sales rental book
Residential Tenancies Act. “They just feel have sprung back was empty. Few of the rentals are now
that everything is stacked up against to pre-Covid levels’ vacant and any vacancies are quickly
them and many are exiting the market. filled. Dunn says there are more tenants
We have investors saying, ‘Look, I just than rentals and some renters have been
don’t want to be a property investor looking for weeks or months.
anymore. It’s too expensive, it’s too have also said that should we see a Expected to exacerbate the problem
tough, and everything’s against us,'” new government and it becomes more in the next few years is a lack of new
Dunn says. beneficial to be an investor, then prices developments on the horizon. Anything
High interest rates are the main might start coming up. under construction was sold a couple
reason for selling, he says. “Investors There are certainly a few people of years before building began. Dunn
would probably hold on for a better looking into what they want to do in says he is not aware of any new
market if they could, but it is meaning the investment space, but it is all developments for the CBD, although
many can’t afford other things because about timing.” he is aware of a few smaller, low rise,
the bank is sucking up a whole lot more complexes outside of the CBD. “It’s
every week than it was before. They AFFORDABILITY different to a couple of years ago when
are making the decision to cash in the STILL A PROBLEM the skyline was littered with cranes.”
investment property so that they are not In Auckland, first home buyers' and Wellington’s development market
in such a tight spot financially,” he says. movers' interest may start again once is in a hiatus, says Kettle. “There are a
However, while investors may want to interest rates start going down, Dunn lot of developers sitting on their hands
sell there are not many other investors in says. “The kinds of apartments they are and it doesn’t look like there are new
the market to buy. looking at – even though the purchase development coming on."
In the capital, not many investors price might be better than it was a year In Christchurch some of the city’s
are selling, says Tommy’s Real Estate ago, and it is – their affordability still bigger development companies have
apartment specialist John Kettle. If an hinges on interest rates, which are high. cancelled build sites in other centres
investor has a stable tenant they keeping So they are in the market, but they’re and are just focusing on the main places
their rental/s. “Those who are selling say struggling to gain traction.” where business is going well, Cleine says.
it’s for the normal reason – retirement, Dunn gives as an example of prices Kettle says there are many things
moving or the kids have left university. dropping – Volt at 430 Queen Street, affecting developers. “It’s not just
I haven’t seen any distressed sales.” Auckland CBD, where a two-bedroom government legislation, there are the
Low investor sales could be because apartment used to sell for about costs of materials, the availability of
most of Wellington’s apartments $400,000 just over a year ago and it labour and rising interest rates have an
are owner-occupied rather than is now selling for between $290,000- effect as well.
being investor held. Originally many $320,000. “Apartments in the capital are
apartments were built for the investment “So in that building alone, it’s a huge generally speaking getting smaller and
market, says Kettle. “Now we are 25 per cent drop.” The complex is 90- when people are buying off the plans
finding owner-occupiers are outbidding 100 per cent investor owned. Price drops they don’t fully realise what they’re
investors, who can’t make the numbers in mainly owner-occupied apartment getting, but it seems to be a trend to
work to keep it as a rental. Investors buildings have not been as big. go smaller. Facing enormous costs,
have a bottom line, owner-occupiers For a one-bedroom apartment in developers are maximising the number
don’t, they want somewhere to live. So the capital, buyers can expect to pay of units they can get on a piece of dirt,
there’s a different mindset. Investors are $650,000- $800,000, Kettle says. but I think that will probably backfire in a
numbers driven and the decision is ruled For a two-bedroom, one-bathroom few years when people understand that
by the head rather than the heart.” apartment, buyers are paying between more space is better.”
Christchurch investors have started $750,000-950,000 for an average unit There is uncertainty about where
buying again. “Investor interest has been with a car park. the apartment development market is
huge on a two-bedroom, two-bathroom, In Christchurch apartment and heading in Wellington. Kettle says the
one-carpark townhouse in Armagh townhouse prices have fallen. A new city must be getting close to running
Street,” Connor Cleine of Harcourts two-bedroom, one-bathroom, and one- out of places to build but developers
Christchurch City says. car park, townhouse in Phillipstown near seem to defy the odds. “They are an
He recently sold a Bishop Street, St the CBD is selling for $499,000. interesting breed in themselves. You’ve
Albans property to an investor, who was However, location plays a big part got to admire them for the way they
coming back into the market for the first in prices, Cleine says. He has a block see opportunities.”
time in a long time. “A few people are in of two-bedroom, two-bathroom units Listings for apartments make up
motion in terms of the investment space, each with a carpark at Bishopdale in about 17 per cent of Wellington’s
but there is an election in a few months the Burnside High School zone, and housing market. In July, there were
and in my experience, investors have the developer is asking for more than 520-530 listings from Seatoun through
tended to stay back, he says. $650,000 each. “So location is a massive to Khandallah and Te Aro. About 100 of
“At the same time, a few of them part that plays into that.” those listings were for apartments.

26 NZ PROPERTY INVESTOR
New build townhouses and
apartments are popular options
in Christchurch, but developers
are having to be more realistic
around pricing.

HARCOURTS CHRISTCHURCH CITY

Kettle says the number of apartment
listings is disproportionately higher than
what it normally would be, although
there is a trend towards that type of
living in Wellington.
Listings fell back to 500 then 450
when the country came out of Covid for
the first time and that fuelled supply and
demand leading to a boom while interest
rates dropped at the same time.
Now listings are at about 1,000,
typical for a July. The primary listings
are for two-bedroom, one-bathroom
apartments, but Kettle says buyers
prefer two-bedrooms with two-
bathrooms and a car park.
Te Aro basin is predominantly the
apartment precinct, and prices dropped
HARCOURTS CHRISTCHURCH CITY

but have come back to what they were

three years ago. “The market did an
interesting bell curve in Te Aro. It went
right up and then came right back down
again and it is now fairly much where it
was three years ago.,” Kettle says.
He doesn’t see the market going any
lower. “We’ve seen some green shoots
already this year.”

OPTING FOR
COMPACT LIVING
In the South Island, Christchurch is a
city where people can still afford to buy
a piece of land and build a house, but
many are opting to live close to the city
and are happy to have compact living in
either an apartment or townhouse with
just a car park.
HARCOURTS CHRISTCHURCH CITY

Most of the city’s high density living

is close to the CBD and apartments
and townhouses throughout the city
outnumber buyers.
Of the 1,800 listings a good portion
are newly bult townhouses Cleine says.
“Developers are having to come to
the party a bit more in price. Eighteen
months ago when money was a lot
cheaper, it was feasible to get into a
townhouse by borrowing for a new
build through the bank. Since then sales or townhouses, they need to have a listing that had 82 groups through it over
haven’t quite caught up with the level of tangible, finished product people can three weeks. Most buyers were in the
stock available.” imagine moving into. Gone are the days budget range $550,000-$650,000 and
The Bishopdale units he is selling of buyers purchasing off the plans. indicated they felt prices were on the
didn’t have any inquiry while under Many buyers are taking their first way up. Cleine thinks prices will bounce
construction, but now they are nearly step onto the property ladder and up in the next six months, but not by a
ready, he has started to see some the market is more active than it has lot. “Inflation coming down and the OCR
people come out of the woodwork. “For been for a while. Cleine recently had a staying at 5.5 per cent has given buyers
a developer selling their apartments Spreydon first-home buyer category more confidence.” Q

NZ PROPERTY INVESTOR 27
INFLATION AND
ITS EFFECT ON
PROPERTY
The property market has always been a prime focus for
investors, but recent surges in inflation have caused many
to second-guess their next move, as Sally Lindsay discovers.
 FEATURE INFLATION

Landlords who don’t have

borrowing to consider are
weathering the inflationary
storm well.

ne of the reasons investors

O favour real estate is due to

its ability to weather the
pressures of rising inflation
and emerge with its values intact,
even improved.
However, recent rising inflation is
having differing impacts on the New
Zealand real estate sector. It’s tough to
enter the property market, agents are
having a harder time finding buyers,
and renters are struggling to find
affordable options.
Conversely, landlords unburdened
by rising borrowing costs are riding the
storm comfortably.
Inflation relates to an increase in the
average prices of a particular economy’s
goods and services over a set period
of time. In New Zealand, this is usually
measured in how much prices may
have changed over a quarterly period
and is tracked by Stats NZ within the
consumers price index (CPI).
Another way to look at inflation is as
a reflection of the drop in the dollar’s
buying power.
There is a correlation between
inflation and house prices. However, NZ’s
has been soaring and house prices have
been falling. This has meant a quick drop
in real house prices. When adjusted for
inflation, house prices have fallen more
than 23 per cent from their November
2021 peak.
Reserve Bank economist Andrew
Coleman says interest rates are an
important determinant of property
prices as they affect the annual “user
cost” of purchasing a property, which
affects the quality of a house structure
people can afford.
In an April discussion paper on
demand for better housing creating
unsustainable house prices, Coleman
says there is considerable international
evidence that property prices are
inversely related to interest rates.

NZ PROPERTY INVESTOR 29
FEATURE INFLATION

year fixed rate is now at 7.79 per cent at

some banks.
This is causing affordability problems,
particularly for mortgage holders rolling
off low fixed interest rates of 3 per cent
and below taken out in 2021.

FIGHTING INFLATION
Independent economist Tony Alexander
says the higher the average rate of
inflation, the higher the average rate
of increase in house prices over the
long term.
“Even though house prices are falling
and inflation rising that is not unusual,”
he says. Fighting high inflation can cause
falling house prices.
“So, there’s two dimensions here. If
you give me an economy where inflation
averages 5 per cent versus one where
inflation averages 2 per cent, I would
expect, on average, house prices to rise
about 3 per cent more.
“In that first economy, everything’s
just being repriced, on average, at a
faster rate. But fighting inflation, of
course, involves pushing interest rates
to high levels where households cut
back on their spending. And during that
process you’ll get the house prices either
rising less rapidly, holding steady or
falling, just depending on how bad the
inflation fight is.”
Alexander says with inflation at 6 per
cent, the fight has to be tough, but it’s
only ever as tough as it needs to be to
get inflation down. A 5.5 per cent cash
rate, fixed mortgage rates of 6.5-7 per
cent should be enough to get inflation
back down to between 1-3 per cent.

DIVERTING INCOME
CoreLogic chief property economist
“There are differences in the effect The impacts of inflation are being felt by Kelvin Davidson says the recent fast rate
of changes in long-term and short-term homeowners and investors in all of their of inflation means homeowners have
interest rates, and also the role everyday spending. to divert more of their income towards
of inflation, but in most countries buying food or paying utilities, so they
persistent changes in real interest country are feeling the inflation pinch might have less available to spend in the
rates are associated with persistent on every aspect of their finances. Half housing market.
changes in house prices. The long of the inflation has come from overseas “It’s about inflation going up,
decline in interest rates since the (ie imported crude oil, transportation monetary policy tightening, which affects
deflation of the early 1980s is widely charges) and the other half has been mortgage rates and that affects the
seen as a major determinant of the domestically-generated, mainly in the housing market. But there could be other
sustained increase in real house prices housing market – building costs are up impacts, in the sense that if the Reserve
in most OECD countries.” 18 per cent over the past year, rents are Bank tightens monetary policy, that’s
rising and house prices dropping – and also going to tend to undermine the
INCREASED COSTS sat at 6 per cent for the June quarter of economy, weaken the labour market and
Inflationary times inevitably lead to the year, even though the Reserve Bank’s that will affect the housing market too.”
increased costs involved in borrowing. To remit is to keep inflation in the 1-3 per Davidson says even though interest
protect their profits, banks will increase cent band. rates have risen while the OCR has
the interest rates for borrowers and Inflation and mortgage interest stayed at the same level since May,
tighten their underwriting, thus offering rates have risen quickly over the past people have a misconception that the
fewer loans to mitigate risk. nine months. In December last year the only driver of mortgage rates is the OCR,
Homeowners and investors across the interest rate was at 3 per cent. A one- and actually that’s far from true.

30 NZ PROPERTY INVESTOR
 “Interest rates offshore have jumped ‘Interest rates impact will be money going into the
around and that is feeding into domestic banks rather than into the shops and
mortgage rates here. It’s not just about offshore have consumer spending. It takes money out
the OCR. Banks are also competitive, of circulation and that helps to bring
and they adopt different strategies if
jumped around and inflation down.”
they want to win market share or not. that is feeding into
In all the OCR plays a part, competitive TIME AND SPEED
behaviour is part of it as well as what’s domestic mortgage While inflation is expected to fall away
happening to offshore interest rates.” a bit in the next quarter, Alexander says
rates here’ the question is where it’s likely to go
BANK MARGINS KELVIN DAVIDSON over the next 12-18 months. “That track is
While people might be grappling downwards towards hopefully 3 per cent
with banks’ interest rates hikes in July, by the end of next year.”
Alexander says bank margins have been Interest rates falling over 2024 is pretty
under quite a bit of pressure over the need to increase further. It seems to have much the universal expectation, says
past few months, so there was some made some firm comments indicating Alexander, but picking the timing and the
catch-up to be done to get margins back it feels inflation is tracking at the right speed of decline is anyone’s guess.
towards some concept of normal. direction, even though it’s still absurdly Coleman says central banks have
He says mainly fixed mortgage high. There are also still tens of billions of preferred to use interest rate policy to
rates have gone up because of an dollars’ worth of fixed-rate mortgages to achieve their inflation and employment
increase in the cost of New Zealand roll from maybe 3.5 per cent towards 6.5 objectives, and macroprudential policy
banks’ borrowing. “That increase has to 7 per cent, meaning extra restraint on to achieve their financial stability
come about not because of anything the economy.” objectives. “Most central banks do
to do with the New Zealand economy, How big the effect of borrowers not choose either interest rates or
but solely because of higher-than- rolling from low interest rates to higher macroprudential policies to deliberately
expected inflation, or at least interest will be, Davidson is not sure. “A wave target house prices, except to the
rate increases in the United States. So, of people are still to roll off lower rates extent that they affect their inflation,
where US monetary policy goes, it has and have not yet fully seen the impact employment and financial stability goals.
an influence on interest rates around of higher mortgage rates on their “As such, while it is widely agreed
the world. And that influence has come household finances. interest rates are more effective than
along and affected us here in New “If they’re diverting more money macroprudential policies at affecting
Zealand over the past three months.” towards the mortgage over the next house prices, most central banks do not
He believes OCR rises have peaked. 12 to 18 months, it’s less money to consider they have a mandate to use
“I don’t think the Reserve Bank feels the spend in the economy. Basically, the interest rates to target house prices.” Q

NZ PROPERTY INVESTOR 31
 LANDSCAPING A
TENANTED PROPERTY
A low maintenance strategy with clean lines and
defined spaces is a good start when planning a
garden, writes Caleb Pearson, of Pearson + Projects.

32 NZ PROPERTY INVESTOR
 DIY PROJECT CALEB AND ALICE PEARSON

Keep things simple with

defined spaces that don’t
need much maintenance and
are more practical for upkeep.

pring has arrived and, while

S it may not feel like it yet, the

warmer weather will soon be
upon us.
With the days lengthening and the
weather beginning to improve, it’s a
great time of year to be thinking about
landscaping, giving you time to take
action before the summer and allowing
plants to take root before giving you the
benefits over the longer days.
I love being outdoors and appreciate
good landscaping, but I don’t want
to be pulling weeds or pruning plants
every other weekend, so my personal
approach to landscaping is what I would
also apply to an investment property.
A low maintenance strategy with
clean lines and defined spaces results in
a smart looking exterior with practical
elements that require less ongoing
upkeep. But that doesn’t mean it needs
to be boring. Here are some ideas to
strategically plan your landscaping.

NZ PROPERTY INVESTOR 33
 ABOVE A minimalist design gives clean lines
without needing much attention.
LEFT AND BELOW Clearly defined borders
makes your space easier to mow and weed.
RIGHT If your budget allows consider practical
hardscaped areas.

34 NZ PROPERTY INVESTOR
 DIY PROJECT CALEB AND ALICE PEARSON

THE ESSENTIALS
Work with what you have: It’s unlikely
you are starting from scratch, so take
stock of what you have to start with and
the current layout of the outside areas.
Mature trees, fencing, driveways, access
to doors, or the lack of these items. They
may be good features to have, or things
you want to remove.
Start here, then create a simple
plan with a vision for the space. It
does not have to be drawn on a plan
(although a simple sketch or plan is
very useful) but do have a picture
for it so it can be executed by yourself
or a landscaper.

MINIMALIST DESIGN: While a

personal preference, I have always
leant towards a minimalist approach to
landscaping, with clean lines, defined
spaces, and a well organised layout. This
avoids plant overcrowding and is a safe
approach that won’t overwhelm tenants
or require constant attention.

PRACTICAL HARDSCAPING: Where

beneficial to the property and budget
permits, look to incorporate practical
hardscaping elements. Hardscaping is
the manmade features in your exterior
(as opposed to softscaping which is
DIY PROJECT CALEB AND ALICE PEARSON

ABOVE Hardscaping adds structure, visual interest and definition to

plants and vegetation). Hardscaping
your garden area.
BELOW Hedges make great borders providing a wall of green. might include a fence to enclose a yard
RIGHT Native shrubs survive the climate best. or create privacy, a retaining wall to
create level areas, paths between spaces
or paving under the clothesline.
Hardscaping adds structure to a
yard, visual interest, and definition. It also
reduces the amount of upkeep.
Start with the big items: Prioritise the
significant elements before getting into
the smaller items. If you are working with
existing gardens, trim and prune the big
trees and hedges. If you are planning
a larger or staged project, address the
hardscaping first before softscaping,
as you may need to make mess. This
approach includes drainage. If you have
water runoff issues or you are planning
to add impermeable spaces, make sure
you have adequate drainage before you
get into softscaping.

ADD BORDERS: Clearly define

areas within your yard, making it
easier to mow, trim and maintain your
landscaping, especially around a lawn
where you have to mow and weed. There
are many borders and edgings available
including wood, bricks, stones, plastic,
mulch and hedges.
 ‘Hardscaping There is a good variety of no-mow
grasses and ground cover, which will
adds structure provide low to no maintenance. For
smaller yards, these have the ability of
to a yard, visual completely replacing grass. Adding in
interest, and mulch is a great way to support your
plants as well as minimising weeds.
definition’
PLANTER BEDS: While many tenants
TALKING OF HEDGES: They are won’t want to maintain a backyard or
a great plant to create height and have the equipment to do so, there will
presence in your yard. A wall of green also be many who do, or at least like
can create privacy or hide an ugly fence, to be able to care and grow their own
reduce wind and noise, and provide plants. Adding a dedicated planter bed
shade. They do require bi-annual for tenants allows them to have their own
pruning, but in the right yard they vegetable patch or grow their own plants.
have a lot of benefits. They can take
two to three years to establish height, IMPORTANT STRATEGY
but spring is a great time to get them Plants, grasses and greenery provide
established in the ground. life, colour and an improved living
environment to a home, as well as other
LOW-MAINTENANCE PLANTING: environmental and practical benefits. But
For a low maintenance garden, it’s key by nature, they are constantly growing
to have low-maintenance planting. This and changing, and ongoing maintenance
means if your tenants are not looking is unavoidable.
after it, you don’t have to be out there So, if you’re looking to landscape,
every month to keep on top of it (lawns start with a plan and strategy so you can
aside). Native plants and shrubs are create an improved living environment for
always a good start as they survive the your tenants, while being mindful of the
climate and require less care. ongoing maintenance that’s required. Q
 RENOVATION

WHEN THE
REFRESH REACHES
THE KITCHEN
Following our June edition, Waikato based interior designer
Mary-anne Tobin, of Design Addiction, opens part two of her
shared journal in the home’s “engine room”.
n part one this renovation focused

I on a 98m2, 1980’s two-bedroom

apartment. The laundry was being
removed from the kitchen and
placed into the bathroom; the key focus
being saving space. SINK
In part two the renovation
continues with a kitchen remodel, and
a transformation with a new open
living space and a clean fresh neutral
palette. It’s time to say goodbye to 80’s
wallpaper and carpet. OVEN

MOVE THAT WALL

With older homes a formal dining FRIDGE
area and kitchen separated with a
wall are very traditional. Often a
client will want to introduce open
living when undertaking a kitchen
renovation and have the wall removed.
For this kitchen remodel we had
already removed the existing laundry
(previously in the kitchen – now
relocated to the bathroom).
It was now time to redesign the
kitchen and, of course, take down the
kitchen wall to create an open living
and kitchen area. We opted to use an
on-bench pantry in the kitchen design
which created additional storage.
Pro tip: when renovating always
remember power points; we placed an
additional power point in this pantry. The
on-bench pantry was 550mm deep so
can easily store a microwave, jug, toaster
and even an air fryer.

THE WORK TRIANGLE

The sink is such an important part of
your kitchen design. You may have heard
of the kitchen work triangle, whereby the How the kitchen work triangle – connecting
sink, hob and fridge must be within close the sink, hob and fridge – can fit with any
proximity of each other. This design kitchen layout you have in place.
principle is a fantastic way to design
a kitchen for a smaller home. In this

38 NZ PROPERTY INVESTOR
TKHEHWWHUZD\WRĆQGDWUDGHVSHUVRQ
Post your job at bc.nz
 renovation we have the sink at the centre
ABOVE With an average time spent in our kitchen of two of the window, which gives an outside
hours per day, functionality is a key consideration. view and allows for conversation while
BELOW CLOCKWISE FROM TOP LEFT Herringbone,
hosting. More importantly, it did not alter
stacked, off-set and vertical subway tile layout options.
the plumbing (cost-saving tick).
I recently read an article by Blum
that suggested users spend an average
of two hours in their kitchen each day
as opposed to only half an hour in their
bathroom. The fridge alone is opened and
closed 30 times, which is something to
consider when investing in your kitchen.
The previously freestanding oven in
this renovation was replaced with an
on-bench electric hob and 600mm wall
oven directly behind the sink and double
fridge (forming an isosceles triangle).
My top tip for kitchen design is that the
dishwasher is always to the left-hand
side of the sink (if you are right-handed)
and the rubbish bin to the right, so when
you rinse the dishes, you can pivot easily
and place into the dishwasher.

SUBWAY TILES
Subway tiles are a cost-effective solution
and give a clean look that aligns with
many aesthetic choices. You simply can’t
go wrong with a subway tile. To create
a kitchen feature wall, we ran a clean
and uninterrupted white subway tile
splashback to the ceiling and mirrored
this above the sink – just high enough to
run past the power points.

40 NZ PROPERTY INVESTOR
 RENOVATION

BEFORE

ABOVE The refreshed kitchen space.

RIGHT Gloss white tiles are easy to clean.

Tiles are an effective way to disguise

any reno wall mishaps, especially if you
are working with older walls.
A common question I’m asked with
tiles is which grout colour to use. In
this splashback we used a white gloss
subway tile laid with a horizontal half
off-set.
I recommended a lighter shade of
grout here to provide softness to the
space, especially where kitchens have a
lot of hard surfaces. Here are some common subway tile cupboards, all having soft closing
Some will argue that white grout is patterns: mechanisms in the cupboards and
hard to clean, but there are options such • Herringbone drawers. Cabinetry is a white satin drift,
as epoxy to help with this issue. • Stacked with contrasting black handles. I love
A gloss white tile is also easier to • Off-set a kitchen tap with a pull-out spray
clean. It’s all about personal preference; • Vertical feature (for added pressure), so this was
you may choose to go darker and also a must.
contrast against the white tile which will The floor tiles selected from the Tile We decided to run with a grey
give added depth. Depot were, thankfully, in stock. Stock benchtop, which we doubled down
If using a mid-grey tile, I try to colour issues are still problematic in New using this in the bathroom for the
match as much as possible. I tend to go Zealand for many items, so always check feature vanity top and splashback (the
a slightly darker shade on the floor due your lead-in times. tenant was a cabinet maker, a definite
to foot traffic. If you have a specific trim Try to allow about 15 per cent more advantage with this renovation). Q
colour in mind, or a particular pattern, be for tile cutting and waste, so you are not
sure to discuss it with your tiler. left short. Check out more of our projects on
This is especially important when houzz.co.nz; alternatively, you can reach
tiling a wet area; you would not want to OPEN LIVING out to hello@designaddiction.co.nz or
pay for waterproofing, then have to rip The refreshed kitchen space now has follow @design.addiction.nz for more
up tiles only to waterproof again. 13 drawers, a large pantry, and five design inspiration.

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NZ PROPERTY INVESTOR 41
SMART DESIGN =
MORE OPTIONS
The Kingsland plan is designed with a clever layout to maximise smaller
sections, a second home on your existing site or it can cost effectively
multiply to a duplex or more.

hether you’re looking

W for one, two, three

or more new homes,
GJ’s Kingsland design
provides flexibility and options for
your section.

CLEVER LAYOUT
Designed with a clever layout to
maximise smaller sections, the versatile
design provides a great option for those
with small sites or looking to build an
additional home on their site. However
the options aren’t just limited to a single
home, the Kingsland’s smart design is
also made to cost-effectively multiply for
duplex or multi-unit options.
The spacious design features open
plan living with a central galley style
kitchen providing a hub to the home.
A generous living area provides a great
place to sit back and relax, while a

42 NZ PROPERTY INVESTOR
 NEW BUILDS SPONSORED BY G.J. GARDNER

sliding door opens the space to provide Smart design, clever thinking, more options.
indoor outdoor flow. A designated dining
space and powder room provide the
downstairs with practical design for
easy living.

GENEROUS STORAGE
Ground Floor Upper Storey
Upstairs you’ll find two spacious
bedrooms with plenty of storage, and
a shared bathroom. The two bedrooms
feel bright and airy with plenty of
windows to let in natural light, while
both feature generous wardrobes for
storage. The main bathroom has a
spacious feel consisting of vanity, toilet
and shower. While an additional hall
closet provides a great linen closet or
an extra storage option.
So if you’re looking for a clever
layout to maximise smaller sections,
a second home on your existing site or a
design that can cost-effectively multiply
to a duplex or more, talk to your local
© G.J. Gardner Homes
GJ’s team about the Kingsland design. Q

G.J. Gardner Homes is proud to be New Zealand’s Most Trusted Home Builder having built
almost 23,000 homes throughout NZ, with every home completed.
To discover for yourself why more New Zealanders trust G.J. Gardner to build their
homes year after year than any other builder visit gjgardner.co.nz.

NZ PROPERTY INVESTOR 43
 NEW BUILDS SPONSORED BY OPES PARTNERS

TWO-BED TOWNHOUSES:
A GOOD INVESTMENT?
Andrew Nicol reviews the numbers on three similar Christchurch
townhouses to discover which provides the best returns.

wo-bedroom townhouses are a

T popular choice for investors and

tenants alike.
But some investors may
worry that an abundance of two-
bedrooms being built runs the risk of an
IS GLOUCESTER ST A GOOD INVESTMENT?
PROPERTY DETAILS

Suburb
GLOUCESTER ST
Linwood
LINWOOD AVE
Linwood
TANCRED ST
Linwood
over-saturated market. This isn’t what we Price $569,000 $635,000 $599,000
see in the data.
Developer XXXXXXXXX XXXXXXXXX XXXXXXXXX
Here’s a case study of a development
I recently recommended to investors in Bedrooms 2 2 2
Linwood, Christchurch. Bathrooms 2 1 1.5
In Linwood, 55 per cent of rentals Car parking 1.5 1 1
are two-bed properties, according to
Floor area 73m2 73m2 73m2
Tenancy Services. This suggests that
tenants want properties with two
bedrooms in this area.
There’s also a bunch of developers But don’t spend too much time looking Gloucester Street is at least $20,000
all building near-identical two-bedroom at the pretty visuals. They won’t tell you more affordable than similar properties
townhouses in the same neighbourhood. whether it’s a good investment or not. on the market.
But with so many new builds on the Instead, you need to look at the All these three properties are two-
market, how do you figure out whether following factors. bedroom townhouses, spread over 73m2,
one is a good investment or not? and come with a car park.
#1 – PRICE They are also within several hundred
WHAT’S THE PROPERTY? The most crucial factor when looking for metres of each other. Tancred Street and
This development is on Gloucester new builds is price. It needs to be a good Gloucester Street intersect.
Street, in Linwood. It has two bedrooms, deal compared to other properties on The only remarkable difference is
1.5 bathrooms and a car park. The rental the market. Linwood Avenue only has one bathroom.
assessment says it will likely fetch around This table compares Gloucester Street But this is the most expensive property
$505 a week. See what it looks like on with two almost identical developments. at $66,000.
the opposite page. Take a look:

44 NZ PROPERTY INVESTOR
 - Linwood Avenue you get $2.31 back
- Tancred Street you get $2.46 back

So, from this financial modelling, you’d

say, “Gloucester Street is the better
investment.”

HOW DO I BUY
A NEW BUILD?
If you’re looking to invest in a new build
property like this, there are two ways to
get one:
1 You can use the information to find a
property yourself through a developer.
2 You can work with a property
ABOVE The plan for the development of two- in 2023, the rent doesn’t cover investment company. These businesses
bedroom townhouses on Gloucester Street. all expenses. build you a financial plan and then find
This means the investor needs to new build properties that fit that plan.
cover the shortfall. Investors call this a
#2 – IS IT A GOOD “top-up”. It’s also known as negative Opes Partners is one example of a
INVESTMENT? gearing in property circles. property investment company, though
There are two main numbers you need By my forecasts, the investor will there are others too.
to know when you invest in a property: need to top-up Gloucester Street by Property investment companies often
• Cash flow (the amount of money $121 a week in the first year, and continue don’t charge you a fee. Instead, they
you need to top up the property to top-up for nine years. get paid by the developer. It’s a bit like
per week). Although, the amount will come down mortgage brokers, who usually get paid
• Return on investment (for every as interest rates gradually decline and by the bank.
$1 invested in a property, how much rents continue to rise. For my complete analysis on this
do I get back?) In this case, Gloucester Street had property, go to opespartners.co.nz/
better cash flow than others in the area. gloucester-street. Q
Let’s take a look at how Gloucester Both of the other properties on this
Street measures up. table (Tancred Street and Linwood Through Opes Partners, Andrew Nicol
Avenue) required a higher top-up for one works with 97 developers from around
CASH FLOW and two years longer, respectively. the country. He and his team of financial
The primary way you make money advisers build Kiwi property investors a
through a new build is by holding the RETURN ON INVESTMENT financial plan and match these investors
property over the long term. Gloucester Street has a return on with new build properties that fit the plan.
The value goes up as the market investment of 260 per cent.
appreciates. But you can’t get those This means for every dollar you invest,
gains unless you can afford to hold on to you’ll get $2.60 back (as well as your
the property. initial investment).
And like most properties bought For every dollar you put into:

NZ PROPERTY INVESTOR 45
YOUR DEVELOPER

THE SKILLS YOU NEED

TO BE A SUCCESS
Anthony Corin says an entrepreneurial mindset, plus the
knowledge of several aspects of property development, are
key to a winning formula.

roperty development is a potentially months off the timeline of the

P sizable commitment of money,

time and patience. A venture
that results in considerable
returns when each phase of the project
is completed properly.
‘Working with a
trustworthy team
is a priority when
project, saving you money.

UNDERSTAND THE COSTS

Financing is the crux of your property
development goals. To come into
A developer’s fundamental objective
developing’ property development you do require a
is to seek out and secure favourable sizable amount of equity to invest, which
land opportunities, develop the land depends on size and complexity.
and maximise its potential and, lastly, But you will need to prepare a
complete the project and turn a profit, Keep in mind council planning comprehensive and accurate budgeting
either by selling the units or becoming regulations go through changes so it sheet to keep you on track with costs
the landlord and renting them. would be wise to keep informed of the and timings, mitigating risk for yourself
In order to be successful in this newest information available and how it that you do not go over budget, which
field an entrepreneurial mindset, plus could impact your development. could in the worst-case close the project.
knowledge of the following aspects of When securing funding to inject into
property development, are key. TRUST YOUR TEAM construction, the bank will thoroughly
Working with a trustworthy team is a assess your situation.
LEARN THE RULES priority when developing. This includes Project timeline, total equity, the
An imperative requirement to start a selecting reliable consultants to engage current market, and presales (specifically
property development journey is to have such as surveyors, planners, engineers off-plan sales) are key factors considered
sufficient knowledge of land rules and and architects. It also includes hiring in how much the lender is willing to
usage to keep your expectations realistic reputable and skilled contractors, as fund. The bank will also be assessing
for what can be achieved onsite. well as potentially engaging a credible your intention with the end of the
Knowing what to look for to help you project management team to manage development, whether you plan to
select a suitable section will make for a all communications and project build to sell the units, or build to rent, in
smoother start to the project, mitigating documentation. which case an investment portfolio will
the risk of unnecessary expenses. It is Working with a team whose goals be considered.
valuable to research your local district are aligned with yours and who you can It takes a resilient person to succeed
plan and mapping services to identify collaborate with and trust to get your in property development. Obstacles
land zoning and rules, which directly project over the line is ideal. It is vital to inevitably arise throughout the course
impact what you are able to build. be aware of how your money is being of the project. The property market
When viewing online mapping spent, if fees are fixed or adjusted, and experiences fluctuations and unexpected
services, take note of any site-specific how these costs add up throughout the costs can crop up. However, a developer
controls and overlays, the location of course of the project. with a level-headed attitude and
underground services in relation to the A competent project management patience throughout the turbulence,
site, as well as floodplains and overland team will carry your project through supported by a trustworthy team
flow-paths, all of which can have a resource and building consent, working together to push the
significant impact on the design of the effectively communicating with council project over the line, can result in
development as well as the costs. and addressing RFI quickly to shave substantial returns. Q

Anthony Corin and his team specialise in property development and construction using ICFs and operating through a relational
contract, open-book system. Shorcom Ltd, 0800 SHORCOM, www.shorcom.co.nz

46 NZ PROPERTY INVESTOR
YOUR ACCOUNTANT

IT’S NOT EASY BEING THE

BANK OF MUM AND DAD
When planning to help the kids into a property it pays to
get a legal, accounting and tax perspective on all your
options, writes Mark Withers.

any parents will relate to them but can become resentful if there is because the kids don’t have the income

M navigating the minefield

around helping children
into a home.
Firstly, there is the pressure to do so
given that it has become increasingly
no clear pathway to actual ownership.
Add to that the problems associated
with bright-line, and you are really
swimming in soup. The kids can’t get a
main home exemption from bright-line
to pay interest to the bank for the
mortgage and mum and dad for their
loan. But in some families the kids are
called on to make interest payments,
especially if mum and dad have
difficult for young people to qualify for unless they are the actual owner of the themselves had to borrow the funds or
lending without assistance. While a dip property and are living in it. the kids have high enough incomes to
in house prices has helped some, the Even if the property is purchased service it, but a low deposit.
increase in interest rates and the stress by your family trust, and the children,
testing applied by banks under the as beneficiaries, reside in the property, TAX POSITION
responsible lending code has meant it is there is no main home exemption. The Now some alert readers will already be
as difficult as ever for the kids to actually main home exemption from bright-line wondering what the tax position is on
get a loan to buy their first home. is only available if the trust’s principal interest earned from the loan to the kids.
Couple that with the pressure to settlor is living in the home or if the The interest income is certainly taxable
do for every child what you have done principal settlor does not have a main to the parents. In most cases this will
for one, and you can be up against home, which is most unlikely. be on a cash receipt basis rather than
hurdles that make planning for your own Because of this, I have personally accrual.
retirement difficult to achieve. always favoured the option of parents In most lending situations there is
One dilemma with helping the kids is allowing the child to actually go on the a requirement on the payer to deduct
the question of what structure is the best title of the property, then the parents resident withholding tax from the
way to actually achieve it. simply become the “bank” and lend interest payments if the annual interest
It’s really important to think through them the money the bank won’t to make bill exceeds $5,000.
the impact that providing this assistance settlement. However, thankfully in the case of
will have on you, and to work that out This gives the kids the incentive to the bank of mum and dad, there is no
relative to all the kids and what you can work hard and profit from adding value requirement for RWT to be deducted
really afford to do. to the home without mum and dad by the kids. This is a result of section
Backing out of these arrangements having an ongoing ownership interest. RE 4(3) which says that RWT is only a
once in can be very difficult if doing so requirement when the payer is involved
means the kids can’t afford to retain the ISOLATING RISK in a “taxable activity”.
home. Ideally, parents will require the kids to Where the loan to the children is to
get a mortgage of their own that is as fund their own domestic home purchase
GOING ON THE TITLE large as it can be without the need for no taxable activity exists, and so there
Some folk have traditionally opted to go parents to guarantee it. This way, the is no RWT withholding obligation. While
on the title of the property and look to parents can isolate their own risk based the interest paid will still be taxable
have the kids take ownership down the on their own ability to raise the funds income to the parents, the need to
line as they can afford it. needed to bridge the gap for the kids register for RWT and administer this
The problem with this is that the kids without actually becoming liable for the system is thankfully avoided.
don’t technically own the property and kids’ mortgage debt. If you're planning to help the kids into
responsibility for the mortgage rests Having decided to lend the kids property, get a legal, accounting and tax
with mum and dad as landowner. money, the next question is whether to perspective on the options and work
The kids then feel obligated to remain charge the kids interest. through these to determine what is right
in the property that was purchased for Often the decision is “no”, simply for your own family circumstances. Q

Mark and his team specialise in advising on property-related transactions, valuation and restructure services, and tax planning.
PKF Withers Tsang & Co Phone 09 376 8860, www.wt.co.nz

NZ PROPERTY INVESTOR 47
YOUR SHORT-TERM RENTAL

CRAFTING THE BEST

GUEST EXPERIENCE
Crafting a winning guest experience is central to
succeeding in the short-term rental market. It can make
or break your bookings, and impact your reputation,
writes Eric Hammond.

he first step to crafting a KNOW YOUR GUEST not always practical. For self-check-ins,

T five-star guest experience is

understanding the customer
journey. First impressions are
based on listings and booking processes.
Providing the right information without
Are you targeting couples and solo
travellers or families and groups? For
the latter, amenities such as a hot tub,
Netflix, or gaming facilities offer a
great bonding experience for friends or
the use of a lockbox for an apartment
complex or smart locks for suburban
properties work best. For security and
guest satisfaction, it is best practice to
monitor lockbox activity for any errors
overwhelming a prospective guest is key family. Backyards are particularly popular or concerns.
to driving conversions. Guests want to for groups travelling with younger Any relevant instructions for the
know a property’s functional amenities children. For couples or solo travel, property need to be communicated
and its proximity to area highlights, one-bedroom apartments or studios clearly to the guest. You can send
but they also want to be enticed by that feature kitchen amenities for this in an email before their arrival,
the potential experience. Creative cooking are a go-to. A coffee machine however, going the extra mile and
copywriting and stunning imagery also works a treat, providing a cafe-style preparing a guest manual can ease
should capture the essence of their stay beverage in the comforts of a home the process and leave a lasting
in an alluring manner. We recommend away from home. impression. This should include
employing the services of a professional information such as wifi and Netflix
photographer and stylist to maximise CUSTOMER SERVICE passwords and nearby attractions.
visual appeal. This also has positive and Customer service is another central A guest won’t sit there and read
demonstrable revenue impacts. component to success. When a 50 pages of information, so keep
prospective guest sends through a it relevant and to the point. As a
STYLING booking enquiry, it needs a speedy professional property management
One of the best ways to enhance your response and someone needs to company, The Stay Hub utilises an
guest experience is through interior be readily available to deal with intuitive mobile app to ensure essential
design. Artistically designed properties concerns during guest stays. Customer information is at our guests’ fingertips at
are so popular, Airbnb has released two service is frequently mentioned in any given moment.
categories specifically for design and feedback. According to Expedia’s
creative spaces. These feature everything 2023 Traveller Value Index, consumers PROFESSIONAL
from stunning architectural wonders rank guest reviews ahead of family MANAGEMENT
to eco-houses embodying nature and recommendations when deciding There are many things you need to
themed properties such as music or to book and 46 per cent will choose consider when creating the best
modern art. The properties themselves the provider with the best reviews guest experience. A professional
provide a unique experience, with many over the best value. All guests should short-term rental management
becoming attractions in their own right. be thoroughly vetted before sending company can take your property to
Artwork is an essential inclusion for a booking confirmation, followed by the next level, with round-the-clock
interior design, fostering a cultured pre-arrival information. Automating customer service to ensure prompt
atmosphere. Go for large pieces as a booking emails is the most efficient way communication, professional listing
focal point for living areas and dining to communicate in a timely manner. creation, styling advice, and market
rooms. For a tranquil environment, knowledge.
furnishings made from natural materials EASE OF ACCESS Reach out to The Stay Hub for
such as stone, wood and plants, along Upon arrival, the key handover needs to more information and learn what
with calming colours like green and blue, be as easy as possible. While some hosts you could earn in the short-term
will promote a sense of wellness. opt to meet their guests in person, this is rental market. Q

The Stay Hub offers a full range of Airbnb and short-term rental property management services, covering everything from
extensive global marketing to hands-on revenue management, guest vetting, cleaning after each stay, and plenty more. We have a
technological and data-led approach, with owner and guest experience at the heart of our operations. Visit www.thestayhub.co.nz.

48 NZ PROPERTY INVESTOR
PROPERTY INSIGHTS

… YOU THINK TENANTS

ARE STRESSED?
It’s time to change the narrative and understand the
intricacies of the rental equation, writes Greg Watson.

ost are familiar with the Soaring interest rates: Recent hikes

M saying “the straw that

broke the camel’s back”.
For landlords today,
this idiom has taken on a weightier
significance. It feels like they’re not
‘In actuality,
a substantial
majority of
mean that landlords are often caught
off guard, with rates that have nearly
doubled in a short span.
Declining property values: Many
landlords face the bleak reality of their
merely dealing with one or two straws,
landlords are recent investments depreciating in value,
but an overwhelming haystack that deeply invested, signalling potential losses.
threatens to bury their financial stability Tax nuances: Legislative shifts can
and investment aspirations. both emotionally introduce unanticipated tax burdens,
Media and political narratives have a
tendency for painting landlords in stark,
and financially, throwing financial plans into disarray.
Loan complexity: The transition from
contrasting colours. The dominant image in their tenants’ interest-only loans to principal and
is often that of a heartless, profit-driven interest can see monthly payments
individual, amassing multiple subpar wellbeing’ skyrocket.
properties and evicting tenants at the Equity fluctuations: Market volatility can
faintest whiff of complaint. In these erode the equity of rental properties,
tales, the tenant is almost invariably The often-overlooked fact is that reducing a landlord’s net worth.
the downtrodden victim, battling many landlords are “mum and dad” Meeting housing standards: Complying
deteriorating living conditions, the investors. These are individuals striving with standards, such as the Healthy
perpetual fear of eviction, and arbitrary to secure their family’s future, not Homes initiative, demands considerable
rent increases. through extravagant means, but through financial outlay, often sourced from
This portrayal, while cinematic, calculated, long-term investments in personal savings.
belongs more in a Dickensian novel the property market. They harbour
than in the nuanced realities of today’s a genuine desire to offer homes that I am currently reluctantly selling a rental
housing market. If we were to frame it mirror the comfort and safety of their property as I can’t afford the $250 to
as a fairy tale, landlords would be the own residences. $300 per week that I need to top it up
villainous overlords, with tenants awaiting from my single income family budget.
the heroic intervention of media or LANDLORD CHALLENGES Mortgage repayments on that home
political saviours. But life isn’t a fairy tale, However, the journey of a landlord is far went from around $890 per month
and the narrative requires a deeper dive. from smooth sailing. Financial challenges to around $2,100 per month recently,
In actuality, a substantial majority are a constant companion: so it will most likely become one less
of landlords are deeply invested, both property in the rental market.
emotionally and financially, in their Inflation: Not only are costs like The property market is indeed
tenants’ wellbeing. Data suggests that insurance, repairs, and property cyclical, with ebbs and flows. However,
approximately 20 per cent of landlords management on the rise, but landlords countless “mum and dad" investors
intentionally set their rental prices also grapple with escalating personal find themselves battling the tide,
below market rates as an act of goodwill household expenses. endeavouring to keep their rental
and support. Moreover, 93 per cent of OCR’s role: The Reserve Bank’s properties afloat amid a sea of
landlords possess three or fewer rental interventions to stabilise the housing challenges. It’s time we broadened our
properties, with the majority having just market often have unintended perspectives, considering the intricacies
one or two. consequences for landlords. on both sides of the rental equation. Q

Greg Watson is an experienced property manager who excels in providing informed advice and continuously improving the property
management service. He is a recognised industry expert, winning national awards and contributing to industry standards.
Phone 06 353 7274, www.watsonrealestate.nz

NZ PROPERTY INVESTOR 49
YOUR REVIEW

CARAVANNING COUPLE
DREAM OF VAGABOND
LIFESTYLE
Retirement goals can become a reality with
a bit of planning, writes Stevie Waring.

ortgage-free parents No mortgage debt was an extremely

‘Bobby and Lee
M dreamed of a retirement
spent driving their caravan
around New Zealand. And
maybe Australia.
Here’s how the pair used their
thought a $75,000
a year passive
income would be
savvy place to be, financially, and they
needed to capitalise on it.
To a bank, it’s not just about how
much you earn. It’s equally about
how much debt you have, and the
hard-worked-for assets, to fuel their two bat off against each other. The
vagabond dream. enough to achieve more debt you have, the more income
you need.
THE INVESTORS their dream Newly debt free, the couple were
Married couple Bobby and Lee, 53 and retirement’ approved for another mortgage. This
52, had a blended family of four children. time it was for an investment property.
They still paid child support for the A standalone house worth $789,000
youngest, but that was due to finish in take at least one trip to Australia. And in Christchurch.
six months. As the baby of the family take the caravan with them. After we discussed the best way
became an adult. So, the couple came to see me at forward, the couple are going to pay
Retirement was looming. Opes Property Partners. off the 20 per cent deposit as principal
The couple thought they were doing But to make a plan, you need to know and interest. They will keep the rest on
pretty well, for their early 50s. Sure, what you’re investing for. In other words, interest only for now.
she was a bit more conservative than you figure out: “How much money do If they paid interest only, Bobby and
he was, but they’d managed to work you need to make your goal a reality?” Lee would get to 89 per cent of their
around it. Bobby and Lee thought a $75,000 a goal ($67,250 pa).
They’d diligently paid their mortgage year passive income would be enough to But on their current debt-free
and were finally mortgage free. They achieve their dream retirement. And they strategy, paying principal and interest
were earning $90,000 and $56,000 a gave themselves 14 years to build it. will get to 101 per cent of their goal
year, and had reasonable savings. I worked the numbers. Right now, ($76,133 pa).
There was $65,000 in their collective they are on track for an annual income Enough to keep the car’s tank full,
KiwiSavers, as well as $17,000 in the of $40,722. and their retirement dreams alive.
savings account. Their $19,000 credit This would be funded by pooling their
card was paid off in full every month. But KiwiSaver, with superannuation for one NEXT STEPS
they did have a $7,000 car loan lingering person, and the total property assets Bobby and Lee’s experience might
over their head. of $808,612. resonate with a lot of homeowners.
However, they still had a wealth gap Maybe you have a very specific vision of
HOW MUCH MONEY? of $680,662. This meant they needed what your retirement will look like.
Retirement was still a way away, but the $1.4m worth of assets to get them to You just need some advice to create
couple already knew how they wanted their goal. the income to make it a reality.
to spend it. In their caravan, living and There are always options for you.
travelling around New Zealand. HOW MANY If you want the same service as
They wanted to dedicate most of their PROPERTIES? Bobby and Lee, your next step is to book
time to doing outdoorsy stuff, things like The first thing they needed to do was a Portfolio Planning Session with us here
biking, kayaking and hiking – which is wipe away their personal loan with their at Opes Partners. See below for details
what they loved to do. They did want to cash savings. on how to contact us. Q

Disclaimer: Just remember this is a column in a magazine, going out to thousands of people. It’s not personal financial advice. But, it
is an example of what can be achieved with personalised financial advice. If you are wanting to book a consultation, email us through
the website at https://www.opespartners.co.nz/contact

50 NZ PROPERTY INVESTOR
YOUR LAWYER

BTR: GOOD FOR

TENANTS AND
LANDLORDS
Andrew Logie looks at the build to rent model
and how it benefits landlords and tenants.

he New Zealand property with it people who might not share

T market is in constant motion

and a newer element of the
market is build to rent (BTR)
developments. There are a few key
players currently operating in this space,
‘These law
changes
arguably provide
the quarter-acre dream. While there
will always be a place for single family
homes, there is increasing demand for
connected neighbourhoods, which can
be provided by BTR. BTR developments
including Simplicity, Kiwi Property and more security are by nature larger projects and they
Arc Residential. If suggested changes to need the rental population in place to
the OIO framework are passed, this list is
to long-term support their development and operation.
likely to grow. tenants’ Unsurprisingly, Auckland is the current
BTR developments are larger scale focus for BTR developments in New
multi-unit communities, purpose built Zealand and will likely remain so given its
for long-term rentals. They are usually primate city status.
characterised by higher quality, durable they meet certain criteria, including:
materials, extra amenities for tenants, • maintaining at least 20 housing units GOOD FOR INVESTORS
proximity to other services (often within the development BTR developments are one of the few
accessed without a car), long-term • the development must be owned by property asset classes which qualify
tenancies, and more options for tenants one entity for an exclusion from the ILR, making
to personalise their exclusive areas. • the development must be located them an increasingly attractive option
An attractive proposition for all within one title, or multiple for investors.
parties involved, recent legislative adjoining titles Furthermore, benefits to tenants also
changes to the Residential Tenancies • tenants must be permitted to means benefits to those who invest in
Act (RTA) and interest limitation rules personalise their units these developments. Happy, long-term
(ILR) in New Zealand directly relate to • owners must offer tenants a tenants means less turnover and less
BTR developments, and have created 10-year tenancy. vacancy. This brings with it the prospect
additional incentives for investors and of secure and reliable income and
tenants. GOOD FOR TENANTS possibly fewer problems with tenants
These law changes arguably provide who are encouraged by the BTR system
KEY CHANGES more security to long-term tenants. to be more invested in where they
The changes to the RTA include: The offer of 10-year tenancies and live. Properties that are built to a high
• rent may only be increased once the ability for a tenant to personalise standard, offer additional amenities
every 12 months their property can mean tenants feel a to tenants, and are able to provide
• the automatic conversion of fixed- greater connection to where they live. In convenient access to services which
term tenancies to periodic addition, with BTR being purpose-built can attract higher rents and therefore
• changes to notice periods from for renting, tenants are not at risk of increased returns. Reports from overseas
21 to 28 days. eviction because of a property sale or have indicated that BTR tenants can
the landlord deciding to change the use accept higher rents, provided there is
Parallel changes to ILR include the of a property. transparency around pricing.
ability for interest to be deducted from Tenants may also be drawn to these We can see why these sorts of
tax payable by owners of developments as the demography of New developments have passed the test for
BTR developments. Zealand shifts. An ageing population, investors answerable to their stakeholders,
Owners of BTR developments will more people living alone, and growth in such as KiwiSaver provider Simplicity and
only be able to deduct interest provided population driven by migration – brings listed property group Kiwi Property. Q

Andrew Logie is a Senior Associate at Wynn Williams. He specialises in property law, with particular expertise in
residential development.

NZ PROPERTY INVESTOR 51
SPONSORED THE PROPERTY LIFESTYLE

IS IT TIME TO LEVEL UP?

With the right people around you anything is possible, writes Nichole Lewis.
t one point in every property I’d had the wrong “who” largely was one of failure and not something I

A investor’s journey – we face

the challenge of how to get
to the next level. We ask
ourselves – how do I get the deposit?
How can I get bank approval? How do
because I didn’t know any different.
Well-meaning family not in the property
game or colleagues at work with an
unqualified opinion. Even successful
property people just looking out for
wanted to share. Forcing myself to do that
one thing, go to events and talk to people,
was the best decision I ever made.
To think, I used to force myself to go
to a job I hated for years and work eight
I find the right property? How, how, how? themselves by talking me into buying hours per day dealing with annoying
I asked these questions over and over their property. customers. Why did I find networking so
for years. Naturally, we ask those around But the right network of “who” really hard? It was only a few hours of talking
us what they think. Depending on the explodes your growth. to amazing people over coffee or drinks
answer we either give up, buy the wrong Now I have money partners, business and I would always come away motivated
property – making ourselves cash poor – coaches, high net worth investors, and inspired having met people who
or buy right and accelerate our growth. commercial specialists, property would become friends for life.
professionals and great property friends In August I put out a survey to a very
WHO NOT HOW that I can go to for anything. Those select group of successful investors to
How, as I have recently discovered is people are the reason I got to where I am. ask them what they need to “10-times”
the wrong question to ask. Instead, we And the reason I’ll get to where I’m going. their portfolio. The answer – access to
should ask “who”? You often hear the old saying “your more people who have already done it.
- Who challenges you to reach levels network is your net worth” but have you In other words, networks of the right
you didn’t think you could? ever stopped to think about what that people.
- Who teaches you the right way to really means? That’s what my new programme
accelerate your wealth? “InTENsify” is going to deliver – high
- Who is your role model (yes even if THE RIGHT NETWORK powered networks, high powered
you’re buying house 20)? Ask yourself where do you want to be in thinking, challenges to elevate you
- Who elevates your thinking? five years? Is your current network going and your results. A top group of the
- Who moves you to the next level of to get you there? Usually, the cold hard best “who” in the property business to
deal making with confidence? truth is no. Not unless you alter course help, support and guide you to reach
- Who can show you what you and level up. And that requires a new new heights.
don’t know? more elevated network. Email me if you’d like to add your
I am not a natural networker. In fact, wisdom to the InTENsify network or
If we have the wrong “who”, we’re in the opposite. I had to force myself to go be one of the select few reaching
danger of giving up or making a mistake. to events where I knew no-one. My story new heights. Q

Nichole Lewis is CEO at The Property Lifestyle, an international best-selling author, property
mentor, public speaker and passive income expert. Creator of Property Quadrants™ formula,
she helps people replace their salaries with passive income. Contact Nichole to talk
property and see how she can help you nichole@thepropertylifestyle.co.nz, 021 582 107,
www.thepropertylifestyle.com, www.nicholelewis.com

52 NZ PROPERTY INVESTOR
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 TARANAKI - THE
PLACE WHERE
ENERGY PEAKS
From picture-perfect Mount Taranaki to the
wild surf beaches and civilised cultural
attractions, Taranaki boasts a natural energy
and vibrancy, writes Sally Lindsay.
Images courtesy TaranakiStory.

54 NZ PROPERTY INVESTOR
 REGIONAL REVIEW TARANAKI

Spectacular Te Rewa aranaki’s strength lies in its diversity, with a huge

Rewa Bridge spanning
the Waiwhakaiho River.
T oil and gas presence, a robust engineering sector,
a concentrated primary production industry and
fast-growing tourism and public events.
Taranaki is home to 124,600 people, most of whom live
in the coastal city of New Plymouth. The region is split into
three districts, each with its own council: New Plymouth
to the north with a population of 86,100; Stratford in
central Taranaki with a population of 9,880; and South
Taranaki, which includes the main centre of Hawera,with a
population of 28,700.
Dominated by Mount Taranaki, the 2,518-metre peak
is the central icon for the region, dominating views and
delivering a wide range of visitor and lifestyle experiences.
The region also has a coastline of rugged cliffs and
sandy black beaches, ideal for swimming, boating, diving,
fishing and other water sports. Surfing is also popular,
with dozens of renowned surf breaks around Surf
Highway 45.
New Plymouth is also home to one of
New Zealand’s best contemporary art
museums, the Govett-Brewster Art
Gallery. The central Pukekura Park
is home to the annual Womad
festival (World of Music Arts and
Dance) and other international
performance events; and then
there’s the Len Lye Centre
and Coastal Walkway.
 LEFT A morning run in Pukekura Park’s
native bush.
ABOVE Taranaki’s Surf Highway 45
beaches are always popular.

Beyond these events, several garden

festivals and major sporting events keep
the locals entertained.
Hawera, Stratford, Inglewood,
Waitara, Oakura, Opunake, Urenui and
many of the other towns throughout
Taranaki provide an inviting alternative
to New Plymouth. In these smaller
communities there are homes on
spacious sections and lifestyle blocks
with sea and/or mountain views.
The median house price in Taranaki
in June was $570,000. This is up from
$280,000 10 years earlier. This means
the median Taranaki property increased
in value by 7.37 per cent each year, or
$29,000 on average.
Recently, however, some suburbs and
towns across the region have seen falls
in house prices, but not to the extent of
the big cities across the country.

THE MARKET
The latest CoreLogic data shows houses
in Manaia, South Taranaki have risen
5.1 per cent in the 12 months to July 1 this

56 NZ PROPERTY INVESTOR
 REGIONAL REVIEW TARANAKI

year, going from $338,950 to $356,250. McDonald says Taranaki is not suffering
Across the rest of South Taranaki prices
‘Taranaki has fared from a listings shortage. “We could
in Eltham have dropped 1.1 per cent better than most as always do with more, but there is a lot of
from $375,700 to $371,700, Waverly appraisal activity.”
prices have declined 1.5 per cent from house price have Last year, 29 per cent of the agency’s
$384,650 to $378,850, and Normanby sales went to buyers outside the region,
prices have decreased 3.1 per cent, from
not dipped as far’ rising from 24 per cent in 2020 and 2021,
$436,400 to $422,750. fuelled by buyers leaving the bigger cities
In New Plymouth the biggest drop to increase right through the crisis,” after the pandemic for a better lifestyle
of 2.8 per cent has been in Hurweorth, McDonald says. and able to keep their jobs and work
where prices have dropped from “Right across the board, the feeling from home. This year it has dropped to
$1,054,100 to $1,024,900, followed is that regardless of any drop, house 20 per cent. He believes the decline is out
by Glen Avon dropping 2.2 per cent prices seem to be higher than they of town buyers now finding it difficult to
from $790,250 to $772,950 and Okato were three years ago. Most Taranaki sell their homes, while Taranaki domiciled
declining 1.9 per cent from $612,850 to people with a long-term mindset seem buyers don’t find it so arduous.
$601,400. Fitzroy prices dropped 1.3 to understand the market goes up and First home buyers have been the
per cent, Waiwhakaiho by 0.8 per cent, down, and the longer they stay in it, the most active in the Taranaki market this
from $1,156,050 to $1,147,150, and New better they will do.” year. Last year, 10 per cent of residential
Plymouth 0.7 per cent. purchasers were first home buyers.
Taranaki has fared better than most of INVESTORS HOLDING This year, it is 13 per cent, most in
the provinces as house prices have not Investors are not running to the exit door recent months, particularly after LVR
dipped as far as other areas across the either, says McDonald. “The majority restrictions were loosened on June 1.
country, says Daniel McDonald, managing are holding, but we’re having more and McDonald says sales to first home buyers
director and the fourth generation to more conversations with landlords about are back to 2020 levels.
work for McDonald Real Estate. potentially exiting the industry.”
The main business sectors have Sales to investors have certainly TAX BURDEN
continued to employ and while some dropped off – in 2020, 20 per cent A few landlords on Propertyscouts'
people are worried about being able to of the agency’s sales were sold to books have recently sold because of
afford their mortgage payments, there investors. It is now down to 13 per cent the extra tax burden as deductibility on
are a growing number of others who and still declining. mortgage interest payments is phased
believe interest rates are at or near their “A lot are saying that they will wait out and cost of living increases.
peak, he says. and see what happens later in the year. Propertyscouts Taranaki director
“They’re encouraged by that and A change of government may alter some Courtney Belgrave says tax deductibility
if they can make their mortgage or of their minds about selling, but likewise is scaring landlords. “We have had a few
investment work at these interest rates, I think interest rates will have just as landlords sell but a lot are waiting to see
then it’s only going to get easier.” big an effect, especially if they start which way the election goes, and they
The general feeling is the drop in coming down.” will then decide what they’re going to do.
house prices is almost finished. “The McDonald says the feeling the agency “But with interest rates going up,
stats are starting to show that. We gets from most of its landlords is that insurance going up, council rates rising,
have certainly seen declines in certain they are paying a mortgage on their it is putting stress on landlords and they
markets, but when you find a suburb investment, so interest rates are a major are having to increase their rents to be
that’s gone backwards, it’s not hard to factor in whether to hang in or sell. able to get back some of that cost,”
find a suburb that’s actually continued Unlike other areas of the country, she says.
 “We have a few landlords saying they Belgrave says while the agency could THIS PAGE CLOCKWISE FROM TOP LEFT
feel for the tenants and try to reduce the do with more rentals, living costs are Dawson Falls at Taranaki Maunga National
increase because the tenants are also having a huge effect on the market. Park, New Plymouth Coastal Walkway, Back
being hit with increases in all the other “Renters are trying to stay longer in Beach sand dune fun, Ember Restaurant.
living costs. their existing property hoping they can OPPOSITE CLOCKWISE FROM TOP LEFT
“A couple of years ago, we would avoid a high rent increase.” Bleached New Plymouth, Paritutu Rock at
Oakura Beach, award-winning Juno Gin
rent a brand new three-bedroom, two- She says it is definitely a lot easier
distillery, Kingsroy Gallery, Puke Ariki,
bathroom property for $550 a week. than it was at this time last year to
Billow Bakery treats.
Now, the rent is $750. So in a couple of find a rental. “However, we still hear
years it’s gone up $200,” Belgrave says. stories about people who have been
A few investors are still buying looking for a year and can’t find
properties, but they are also holding anything suitable.” to have an issue finding a property now
on and hoping there is a change that the market has cooled off.”
of government to reverse the tax COOLING OFF There is still a scramble by tenants
deductibility. Belgrave says there is usually a reason for properties at the median rent. For a
Demand for Taranaki rental properties – they have an outstanding Tenancy two-bedroom property the average rent
has dropped in the past year. The Tribunal case, had 14-day notices, or is $450 to $550 a week – a median of
number listed on Trade Me has risen haven’t kept up with rent payments. “If about $400, while for a three-bedroom
to between 70-85 properties this year tenants present as clean and tidy and the average rent is $550 to $650 a week,
compared with 50-60 last year. pay their rent on time, they don’t seem so the median is about $600 a week.

58 NZ PROPERTY INVESTOR
REGIONAL REVIEW TARANAKI
REGIONAL REVIEW TARANAKI

MEDIAN PRICE & SALES Mt Taranaki watches the morning

Annual change in Taranaki’s median price and sales volumes over five years: surfers at Oakura Beach.
YEAR ENDING MEDIAN PRICE % CHANGE SALES % CHANGES
For those properties Belgrave says
Jul-23 $596,750 -3.7% 1,494 -16.5%
there can be up to 30 applicants.
Jul-22 $620,000 21.6% 1,789 -19.3%
Propertyscouts has a few high-end
Jul-21 $510,000 22.9% 2,218 20.8% properties on its books, but they are
Jul-20 $415,000 11.5% 1,836 -13.6% mainly rented by companies for staff
Jul-19 $372,200 2,126 coming from out of town or overseas.
The most popular rental areas are in
Source: REINZ
good school zones. “As school zoning
PRICE BAND SALES has become tighter in New Plymouth,
Annual change in Taranaki’s sales volumes across price bands over three years: areas around Highlands Intermediate,
% OF SALES Welbourn School and Frankleigh Park
are popular.
YEAR ENDING YEAR ENDING YEAR ENDING YEAR ENDING
PRICE BAND “No matter what spin is put on
JULY 2020 JULY 2021 JULY 2022 JULY 2023
Less than $400k 46% 27% 12% 14% landlording, it is a risk, and the
government is not making it easy for
$400k-$599k 34% 37% 34% 36%
them, adding a range of legislative
$600k-$699k 9% 14% 16% 16% changes.”
$700k-$799k 5% 9% 11% 10% She says the Healthy Homes
$800k and over 7% 14% 26% 24% standards are great, but it has come
at a huge cost to landlords, with tax
Source: REINZ
deductibility, higher interest rates and
SUBURBAN GROWTH insurance rising on top of the standards.
Taranaki’s top 10 suburbs for capital growth in the year ending June 1, 2023: If something doesn’t give landlords will
TA NAME SUBURB MEDIAN VALUE MEDIAN VALUE ANNUAL % sell and the rental market will collapse,
NAME 1/7/2022 1/7/2023 CHANGE leaving even more people homeless. Q
South Taranaki District Manaia $338,950 $356,250 5.10%
New Plymouth District New Plymouth $853,700 $847,850 -0.70%
New Plymouth District Waiwhakaiho $1,156,050 $1,147,150 -0.80%
South Taranaki District Eltham $375,700 $371,700 -1.10%
New Plymouth District Fitzroy $904,800 $892,850 -1.30%
INVESTING IN
South Taranaki District Waverley $384,650 $378,850 -1.50% TARANAKI
New Plymouth District Okato $612,850 $601,400 -1.90% For more information about
New Plymouth District Glen Avon $790,250 $772,950 -2.20% investing in Taranaki go to
New Plymouth District Hurworth $1,054,100 $1,024,900 -2.80% www.taranaki.nzpif.org.nz.
South Taranaki District Normanby $436,400 $422,750 -3.10%
Source: CoreLogic

60 NZ PROPERTY INVESTOR
 CORELOGIC TARANAKI
KELVIN DAVIDSON, CHIEF PROPERTY ECONOMIST

MARKET COMPOSITION
THE DATA
Rental data is sourced from the Ministry
of Business, Innovation and Employment
based on rental bonds lodged. This data
is supplied grouped into geographic
areas based on statistical area units used
by Statistics NZ for the census and as
a result do not always match well with
common usage suburb names.
The rental data for each area is
matched to property price information
from our database to determine property
prices and therefore yield. The yield
is calculated as the annualised rental
income divided by the median property
value calculated using our E-Valuer.

The rental market across Taranaki HOUSE SIZE, BY BEDROOM COUNT 1 brm 2 brm 3 brm 4 brm 5 brm
is dominated by houses. Of the 534
properties recently available on the
market for rent, 459 have been houses
(86 per cent), 42 have been flats (8 per
cent), with 33 apartments (6 per cent).
Apartments are concentrated in two
areas, with 18 in New Plymouth Central/
Moturoa and 15 in outer New Plymouth.
For flats, 18 have been in outer
New Plymouth, 15 in New Plymouth
Central/Moturoa, with another nine in
Waitara/Inglewood.
The most significant market for
houses on the rental market lately
has been outer New Plymouth (201), RENTAL YIELD
followed by New Plymouth Central/ SUBURB MEDIAN MEDIAN GROSS ANNUAL RENT
Moturoa (78). There have been around WEEKLY RENT VALUE YIELD CHANGE
40 rental houses each in Hawera, New Plymouth Central/Moturoa $600 $611,200 5.1% 11.1%
Stratford, Rural South Taranaki, and Outer New Plymouth $620 $717,650 4.5% 11.7%
Waitara/Inglewood. Rural New Plymouth Waitara/Inglewood $520 $506,000 5.3% 6.1%
has had a smaller number of 18 houses Rural New Plymouth $550 $662,400 4.3% 22.2%
for rent, but it’s one of four sub-markets Stratford $518 $457,550 5.9% 17.7%
across Taranaki where there are no flats Hawera $500 $449,450 5.8% 8.7%
or apartments. Rural South Taranaki $402 $381,450 5.5% 5.8%
Median rent: Weekly rent based on the bonds lodged for three-bedroom houses in the three months to June 2023. Median value: The median value of

HOUSE SIZE, BY three-bedroom houses in the area based on estimating the current market value of each property using our E-Valuer. Gross yield: Annualised median rent
as a percentage of median property value. Annual rent change: The percentage change in rent compared to 12 months prior.
BEDROOM COUNT
Looking at the 459 houses recently for although its concentration rate (25 Plymouth. There’s also quite a wide
rent across Taranaki, none have had per cent) is slightly exceeded by New range for the median values on these
five bedrooms, and only six with one Plymouth Central/Moturoa (27 per cent). properties, from less than $400,000
bedroom (all in Outer New Plymouth). And finally for three-bedroom houses, in Rural South Taranaki up to nearly
As per most other parts of NZ, the the most have recently been for rent in $720,000 in Outer New Plymouth.
concentration for houses tends to be Outer New Plymouth (108), followed by Gross rental yields on three-bedroom
in the three-bedroom bracket (273 New Plymouth Central/Moturoa (45). houses can differ quite a bit, and are
properties or 59 per cent of houses), Each sub-market has a concentration down at 4.5 per cent in outer New
with 22 per cent having two bedrooms rate for three-bedroom properties Plymouth (and 4.3 per cent in Rural New
(99) and 18 per cent four (81). among all rental houses of around 60-70 Plymouth), but 5.5 per cent or more
The most four-bedroom houses per cent, although outer New Plymouth in Rural South Taranaki, Hawera, and
recently for rent in Taranaki have been in is a little lower at 54 per cent. Stratford. Of course, even at a yield of
Outer New Plymouth (36), with a smaller 4.5 per cent (low for Taranaki), that’s still
spread across each of the other sub- RENT AND YIELD quite attractive compared to many other
markets. The highest concentration rate By matching average value to rent parts of the country. Rental growth has
has been in Rural New Plymouth, with 33 we can look at gross yield for three- been strong lately, ranging from about
per cent of houses recently for rent there bedroom houses in each area. Median 6 per cent annual increase for a three-
in the four-bedroom category. Switching weekly rents for three-bedroom houses bedroom house in Rural South Taranaki
to two bedrooms, again the most (51) range from as low as $402 in rural and Waitara/Inglewood, up to about
have been in Outer New Plymouth, South Taranaki up to $620 in Outer New 22 per cent in Rural New Plymouth. Q

NZ PROPERTY INVESTOR 61
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NZPIF FROM THE PRESIDENT’S DESK
SUE HARRISON

TIME TO TALK ETHICS AND

PROPERTY INVESTMENT
PIA members collectively subscribe to a code of
ethics which centres on respect for, and fair dealing with
tenants, writes Sue Harrison.
he first consideration is to OUR VOICES people. But we encourage our members

T acknowledge that private

investors play the highest
and most valuable role in the
New Zealand housing system. They
provide over 85 per cent of rental
All of this has been entirely funded by
owners through their memberships
without any government support. Our
voices have been heard across numerous
revisions of the Residential Tenancies
to be compliant.

KEEN PRICES
We have assembled a pool of trustworthy
suppliers who are able to inform and
housing compared with less than Act and on a myriad of topics, including advise on the products and services
15 per cent provided by state-owned taxation, meth levels, property managers required to achieve compliance and who
housing. and pets. can do so at highly advantageous prices.
The government sector has shown Speakers educate members while As governments load the risks,
it is not capable of supplying the housing ensuring impartiality. The only product obligations and costs onto property
needs of the nation; any discussions being sold is membership and the annual owners, it is structurally changing
around government or local bodies national conference, where awards the rental market and creating a huge
providing more housing are unrealistic, are presented to those demonstrating rental shortage that is going to be hard
so the system remains a public/private outstanding tenant management skills. to replace.
partnership. Beyond all this, PIA members With most available rentals privately-
The New Zealand Property Investors’ collectively subscribe to a code of owned houses, we desperately need
Federation (NZPIF) plays a valuable ethics which centres on respect for, and those people. There are already far more
role in providing its 17 property investor fair dealing with, tenants. The NZPIF tenants out there than people who can
association “member groups” with code of ethics includes guidelines offer them tenancies, so part of facilitating
impartial information which is shared. around community, compliance and an adequate rental supply is to ensure
It also carries out valuable advocacy interpersonal responsibilities. It covers property owners are well informed.
work on behalf of all property investors. tenant relationships, professional Private landlords have been proven to
An education certificate course, behaviour, discrimination, confidentiality, generally be excellent stewards of their
RentSkills, has been created by long- community and compliance. tenants and those people who join our
time member and national vice president All residential rental properties have organisation are striving to be the best.
Peter Lewis as an accessible and to comply with the Healthy Homes They’re working hard to know the rules
convenient way to ensure knowledge of legislation. The NZPIF and its local and to do the best they can by tenants,
the Residential Tenancies Act and best property associations have supported while managing the significant risks and
practice in managing tenants. The course the spirit of this legislation and have burdens of ownership.
is free to members. worked to ensure requirements are Join your local property investors’
When natural disasters like floods realistic and “fit for purpose”. association to meet friendly like-minded
and earthquakes occur, members are Some politicians, theoreticians and people who know about your local
supported, and information shared media commentators excel at creating area and enrol in the NZPIF RentSkills
with members of associations about a combative “them and us” narrative education programme for landlords.
how to manage tenants, insurance around people who own investment www.nzpif.org.nz or email
and property. properties being, by definition, bad admin@nzpif.org.nz. Q

THANK YOU FOR THE CONTINUING SUPPORT FROM NZPIF BUSINESS PARTNERS

NZ PROPERTY INVESTOR 63
 NZPIF - AROUND
THE REGIONS
Events and meetings linked to NORTHLAND
NEXT MEETING: Wednesday September 27, 7pm at
property investor associations. The Northland Club, 8 Porowini Avenue, Morningside,
Whangarei. Free car parking onsite.
TOPIC: The speaker is Chris Bishop MP, National’s
Spokesperson for Housing, Infrastructure, RMA
AUCKLAND Reform and Urban Development.
NEXT MEETING: Go to www. ROTORUA
apia.org.nz/events for details on NEXT MEETING:
upcoming meetings. APIA hosts
100 events and presentations for
TAURANGA Tuesday September
NEXT MEETING: Monday 12, 6pm start at
its members each year.  the NZHL Office,
September 11, networking
from 6pm with 7pm 1109 Fenton Street,
start, Tauranga Yacht & Rotorua.
WAIKATO Power Boat Club, 90 Keith TOPIC: Rotorua’s
NEXT MEETING: Wednesday September 13, 7.30pm Allen Drive, Tauranga 3110. local MP Todd
T McClay
Workingmen’s Club, 45 Commerce St, Hamilton.  TOPIC: Political panel is coming to talk to
TOPIC: The great debate – residential versus facilitated by Opes Partners. our members.
commercial investment.

TARANAKI HAWKE’S BAY

NEXT MEETING: Tuesday September 19, 7 for NEXT MEETING: Monday
7.30pm start, Plymouth International Hotel, September 18, 6.30
220 Courtenay Street, New Plymouth. for 7pm at the Resene
TOPIC: Speaker is Matthew Horncastle, ColorShop, 116 Taradale
managing director of the Williams Corporation. Road, Napier.
TOPIC: Richard Chandler,
Resene Paints, will be
showcasing new trends in
MANAWATU paints and wall papers.
NEXT MEETING: Wednesday September 6, 7 for
7.30pm at the Palmerston North Bridge Club,
corner Cook and Cuba streets, Palmerston North.
TOPIC: Chris Bishop will talk about National’s
plans for infrastructure and housing. WAIRARAPA
NEXT MEETING: Thursday September
14, 7.30pm at the Lone Star.
TOPIC: AGM followed by Mike Butterick,
NELSON National Party local candidate.
NEXT MEETING: Tuesday September 19,
7.30pm at the Honest Lawyer, Monaco,
Nelson.
TOPIC: 6pm investor dinner, followed by WELLINGTON
Peter Lewis, NZPIF Vice President at 7.30pm. NEXT MEETING: Thursday
MARLBOROUGH September 14, 6.45 for 7.15pm
NEXT MEETING: Wednesday start at Lifepoint Church, 61
September 20, 7.30pm at Ray Hopper Street, Mount Cook,
CANTERBURY White office, Blenheim. Wellington 6011.
NEXT MEETING: Monday September TOPIC: Ian Fyfe will talk about the TOPIC: Smart renovations on
18, 7.30 to 10.00pm, at Merivale Lane ABC of short term rentals. a budget.
Theatre, Rangi Ruru Girls School.
TOPIC: Brad Olsen, chief executive and
principal economist at Infometrics.
SOUTH CANTERBURY
NEXT MEETING: Wednesday September 20, 7pm
NORTH OTAGO at Caroline Bay Lounge, Timaru.
NEXT MEETING: Please contact TOPIC: Please contact Kerry Beveridge at
SOUTHLAND the association, Jeanette Halcrow kiwikerry@gmail.com or 021 482 840 for
NEXT MEETING: at krow47@xtra.co.nz or call 03 information about the next meeting.
Tuesday September 434 8268 for information about
5, 7pm at Harcourts, the next meeting.
182 Dee Street,
Invercargill. JOIN A PROPERTY INVESTOR
TOPIC: A panel OTAGO ASSOCIATION FOR INDUSTRY
of four political NEXT MEETING: Tuesday September 26, UPDATES, NETWORKING AND
candidates from 7 for 7.30pm start PlaceMakers, 50 Burns COMMERCIALLY INDEPENDENT
National, Labour, Street, Dunedin. INFORMATION – A GREAT WAY
Act and the Greens. TOPIC: An evening at PlaceMakers. TO PROTECT YOUR RENTAL
PROPERTY INVESTMENT.
NZPIF SPOTLIGHT – MARLBOROUGH

A WINDOW OPENS ON
SELF-SUFFICIENT GARDENS
Designer Christo
Saggers shared his
passion for rural self-
sufficient landscapes
with Marlborough PIA.
ach year, from February

E to December, members
of Marlborough Property
Investors’ Association meet at
the premises of Ray White. Each month
there is a different speaker, and many
topics are covered which are of interest
to investors.
A passionate designer of self-
sufficient gardens, Christo Saggers, was
the speaker at a recent monthly meeting.
On his website (http://christosaggers.
co.nz), he says he has been designing
gardens and landscapes since 2007.
During this time he has created
natural native gardens, edible gardens,
Mediterranean gardens, self-sufficient
gardens, farmhouse gardens and
modern urban minimalist gardens. As he
says – you name it he’s designed it.
However, he states his real interest
is in modern self-sufficiency. In today’s
world with the cost of living continually
increasing, it was interesting for A selection of Christo Saggers' gardens and landscapes.
members to learn that Sagger’s passion
for rural self-sufficient landscapes is However, whichever route is taken, it is plants grow so don’t be tempted to
based on the aim for owners to become at this point that many decisions have to put too much in when establishing a
less tied to shopping at the supermarket be made about the purpose of the garden new garden.
and buying fossil fuel-derived power. and its proposed functionality. The area For a large space a lawn is a good
Designing these self-sufficient to be devoted to the garden, irrigation idea as this reduces the need for
gardens is what he loves to do. As which may be required, and factors gardening and pruning, giving the owner
Saggers points out, there’s nothing such as prevailing wind are all important more time to enjoy the landscape view.
more satisfying than knowing your considerations and will influence the In a large space, 75 per cent of the area
property can supply you with delicious design. Above all, it is very important to can be landscape view. Above all strive
fruit, vegetables, nuts and seeds as well have a budget and to stick to it. to achieve crisp, clean lines as these are
as meat, milk, cheese and eggs. And Members were given very practical the most successful when looking at the
perhaps most important of all, power suggestions during the presentation. For finished design.
and clean water. As a bonus it makes the example, when planning your garden As many gardeners will already
garden look great too. leave a one-metre zone around the know, mulching as much as you can
house which could be a path. This gives around your planted areas will reduce
GARDEN FROM SCRATCH accessibility and prevents plants being the level of maintenance required and
Saggers began by outlining the steps he too near the house. be of enormous benefit to your garden.
goes through when working with clients Mulch helps the garden retain moisture
to establish a garden from scratch. The BULLETPROOF PLANTS as well as encouraging worms and other
first step is an hour-long consultation, Remove trees or plants around gutters important soil organisms.
then Saggers writes a report. The report as these can encourage rodents and Finally, it takes up to six months to
becomes the basis for a plan which is the insects. Established trees and plants can see the results of planting. Spring is a
second step. The client can do this for be pruned and then under-planted with good time to begin work, so Saggers
themselves or have it drawn up for them. bulletproof plants. Remember, trees and advises to start planning now. Q

NZ PROPERTY INVESTOR 65
NZPIF SPOTLIGHT – ROTORUA

PROPERTY INVESTMENT
FUNDS WORLD SAILING TRIP
Rotorua PIA heard Steve Harries’ inspiring story, including how property
enabled his family to spend almost three years travelling the world.
extreme experiences having climbed the
four highest peaks in the North Island in
under 24 hours.

IMPORTANCE OF
SYMBOLISM
Harries, who calls himself a life coach,
entrepreneur, investor and sailor, shared
his belief in living life to the full. His
experience of sailing with his family is
a perfect example of this philosophy.
His advice to the group was if there is
something you want to do – write it
down and track it. And use symbolism to
help you focus on your dream.
Years ago Harries bought a model
ship made of paua and dreamed about
sailing around the world. This symbol
kept him focused on his dream and
helped him work towards making it
a reality. He encouraged investors to
offload anything that is superfluous in
their life and get rid of anything that
might get in the way of achieving
their dreams.

ROTORUA HIGHLIGHTS
teve Harries’ property as a dreamer. Following school he Harries is one of many outstanding

S investment journey began in

2005. Since then he has built
up a portfolio of property
and business assets which give him the
flexibility to do what he loves every day.
has achieved a number of formal
qualifications: an MSc in environmental
health and engineering, a theology
degree, electrical qualifications and a
master of yachts offshore qualification
speakers Rotorua Property Investors’
Association has hosted. Angela Strang,
a self-made property investor from
the South Island, and Steve Goodey a
full-time property investor since 1999
He shared the story of his family’s recent that enables him to captain sailing have both spoken to us recently. Other
world trip with members of Rotorua PIA. vessels up to 200 tons. highlights at our monthly meetings
In 2019 – with little sailing experience have included a tour of Rotorua
– Harries and his family bought a RIGHT RESOURCES rental properties, a presentation on
yacht in Greece and embarked on a During Harries early career he spent relocatable homes, and learning from
20,000-nautical-mile sailing adventure. many years as an international other investors at different stages of
They sailed home to New Zealand – development specialist which gave their investment journey. Q
over two-and-a-half years – taking in as him the chance to travel to countries
many surf and kite-surfing locations as in Africa, Asia and the Pacific. He says NZPIF is a not-for-profit organisation
possible along the way. these roles taught him an important and does not provide financial, legal,
Harries explained that the expenses lesson about making sure you have the tax or accounting advice. Information
for his world trip, including the boat and right resources in place for any project provided by, on behalf of, or under the
necessary upgrades were all covered you take on. auspices of NZPIF is necessarily of a
when he sold the craft at the end of the Before setting off on his two-and-a- general nature. NZPIF and its officers
family’s trip. The trip was essentially half year family adventure, Harries read and agents have no responsibility or
achieved with only their living costs sailing books, did a five day course and liability of any kind to any person for
to pay. spent a summer sailing locally. He said such information. NZPIF recommends
you can’t plan, know or predict what you consult appropriate professional
SCHOOL DROPOUT will happen on an adventure, or with advisers before making any investment
At school Harries told us he was a any project – you need to be prepared decision or entering into any investment
dropout and was often regarded for anything. Harries is no stranger to or transaction.

66 NZ PROPERTY INVESTOR
 In association with

Otago Property Investors Association presents

NZPIF CONFERENCE 2023

27th - 29th October 2023
Rydges Lakeland Resort | Queenstown

Full conference pass $670

Pass excluding gala dinner $570

Hilary Barry, MC

Brad Steve Paula Liam Pru

Olsen Goodey Bennett Malone Morrall

For tickets visit: propertyconference.org.nz Gold Sponsors:

RENTAL & SALES STATISTICS
SEPTEMBER 2023
HOW TO USE THIS SECTION
The key to any good Investment is Information. NZ Property Investor magazine, with the trusted data supplied by
Corelogic would like to show you how you could use this data to optimise your next investment search.

1  COMPARE RENTS AND VALUES FOR 3 AND 4 BEDROOM HOUSES IN A GIVEN SUBURB
Then consider what the rent and value increase
would be if you renovated a 3 bedroom property
into a 4 bedroom property.
Example: Manurewa North going from 3 to 4 beds,
looks like an increase of about $200,000 and rent
of about $80 a week.

2  ESTIMATE AN INCREASE IN RENT FROM A RENOVATION

Example: If my house is in Manurewa North and
has 3 bedrooms. If it currently rents for $590 and has
3 bedrooms, a renovation could push it up the rental
range to the upper quartile. Currently $670. That’s an $80
increase.
Estimate the 1 year increase. This can also be useful
when estimating how the value of your property may have changed over the prior 12 months, which can then impact your ability to
purchase your next property.

3  ESTIMATE RENTAL DEMAND AND HOW

LONG IT WILL TAKE TO FIND A TENANT
For instance there were 48 bonds issued in Dinsdale South
in the last month. That means there are about 12 3-bed
houses renting in that suburb per week. That might tell you something about how much vacancy you might have.

68 NZ PROPERTY INVESTOR
RENTAL & SALES STATISTICS SEPTEMBER 2023
trusted data

RENT MEDIAN RENT MEDIAN VALUE YIELD

RENTAL AREA NO. OF
TYPE BEDS PROPERTIES NO. OF
BONDS QUARTILE 1 YR 5 YR 1 YR 5 YR 1 YR 5 YR
RANGE CURRENT CHANGE CHANGE CURRENT CHANGE CHANGE CURRENT CHANGE CHANGE

NORTHLAND
Far North - Rural Far North House 3 2276 18 320 - 525 453 0.7 51.0 502350 0.9 73.0 4.7 -0.3 -12.7
Far North - Ahipara/Kaitaia House 3 1289 21 470 - 531 500 11.1 61.3 426850 -11.8 69.1 6.1 25.9 -4.6
Far North - Mangonui/Kaeo House 3 1430 18 425 - 550 500 -3.8 42.9 750000 -1.5 66.9 3.5 -2.4 -14.4
Far North - Bay Of Islands House 2 767 15 456 - 576 500 -9.1 32.6 792800 -8.6 54.8 3.3 -0.6 -14.3
Far North - Bay Of Islands House 3 3053 33 538 - 690 650 10.2 44.4 886250 -4.8 41.0 3.8 15.8 2.4
Far North - Bay Of Islands House 4 1547 12 630 - 718 680 0.0 28.3 1097100 -11.7 39.5 3.2 13.3 -8.0
Far North - Kaikohe House 3 726 0 - 0 0.0 0.0 376550 1.4 105.9 0.0 0.0 0.0
Whangarei - North West Rural House 3 1252 18 500 - 690 550 10.0 37.5 789850 -11.5 49.7 3.6 24.4 -8.2
Whangarei - Kamo/Tikipunga/
House 3 3833 60 574 - 650 600 3.4 42.9 631750 -12.2 37.5 4.9 17.8 3.9
Kensington
Whangarei - Kamo/Tikipunga/
House 4 1494 24 630 - 700 650 7.4 36.8 776500 -12.7 30.7 4.4 23.1 4.7
Kensington
Whangarei - Whangarei Central/
Flat 2 816 9 390 - 488 450 2.3 55.2 475000 -7.9 37.2 4.9 11.0 13.1
Otangarei
Whangarei - Whangarei Central/
House 2 499 27 450 - 513 485 2.1 40.6 539500 -15.1 43.5 4.7 20.2 -2.0
Otangarei
Whangarei - Whangarei Central/
House 3 1743 36 578 - 628 590 4.4 37.2 613000 -13.4 54.8 5.0 20.6 -11.4
Otangarei
Whangarei - Ngunguru/Onerahi/
House 3 4507 48 580 - 650 620 12.7 37.8 830550 -9.9 46.8 3.9 25.1 -6.1
Whangarei Heads/Waipu
Whangarei - Ngunguru/Onerahi/
House 4 2115 21 600 - 700 680 1.5 41.7 1106150 -4.1 45.2 3.2 5.8 -2.4
Whangarei Heads/Waipu
Whangarei - Morningside/
House 3 1926 30 545 - 621 580 4.5 41.5 568100 -12.7 37.2 5.3 19.7 3.1
Raumanga/Maunu
Kaipara - Entire District House 3 3477 36 471 - 600 518 -5.8 24.8 804800 -5.9 43.8 3.3 0.1 -13.2
Rodney - Wellsford/Warkworth/
House 2 1263 48 490 - 550 500 4.2 17.6 926350 -10.3 29.5 2.8 16.1 -9.2
Helensville
Rodney - Wellsford/Warkworth/
House 3 4824 66 550 - 650 598 -0.3 24.6 1173550 -6.2 16.5 2.6 6.3 6.9
Helensville
Rodney - Wellsford/Warkworth/
House 4 2778 27 589 - 748 650 -3.4 21.0 1553950 -3.4 36.4 2.2 -0.0 -11.3
Helensville
Rodney - Orewa/Whangaparaoa Flat 2 869 9 510 - 590 545 6.9 25.3 836300 -10.2 22.9 3.4 19.0 2.0
Rodney - Orewa/Whangaparaoa House 2 1376 63 529 - 600 555 2.2 18.1 936750 -14.5 24.9 3.1 19.6 -5.4
Rodney - Orewa/Whangaparaoa House 3 6342 84 640 - 750 695 6.9 26.4 1031350 -15.0 18.9 3.5 25.8 6.3
Rodney - Orewa/Whangaparaoa House 4 5374 90 799 - 900 850 3.7 17.7 1381350 -7.0 27.6 3.2 11.5 -7.7
Rodney - Rewiti/Kumeu/Riverhead House 4 1725 33 820 - 880 840 5.0 16.7 1403750 -16.0 19.0 3.1 25.1 -2.0
Rodney - Gulf Harbour House 3 935 9 625 - 709 650 2.4 17.1 1057300 -7.7 22.5 3.2 10.9 -4.4
Rodney - Gulf Harbour House 4 1153 12 680 - 760 720 -4.0 19.0 1148300 -13.4 15.2 3.3 10.9 3.3

AUCKLAND
North Shore - Torbay House 3 1716 30 650 - 700 670 3.1 12.6 1174250 -8.3 18.9 3.0 12.4 -5.3
North Shore - Torbay House 4 1397 15 780 - 930 850 6.3 22.3 1385150 -7.7 15.6 3.2 15.1 5.8
North Shore - East Coast Bays Flat 2 619 6 548 - 588 575 2.7 15.0 1015950 -19.1 7.8 2.9 27.0 6.7
North Shore - East Coast Bays House 3 1240 27 720 - 823 780 4.0 14.7 1791750 -21.4 19.1 2.3 32.4 -3.7
North Shore - East Coast Bays House 4 1620 24 900 - 1250 980 7.1 15.3 2346200 -15.2 18.9 2.2 26.2 -3.1
North Shore - Albany House 3 450 18 650 - 748 710 10.1 16.4 1126700 -10.2 12.6 3.3 22.6 3.4
North Shore - Albany House 4 903 15 805 - 950 848 6.0 21.1 1462550 -8.8 21.0 3.0 16.2 0.1
North Shore - Wairau Park/Glenfield
House 3 1443 42 650 - 700 660 3.4 11.9 1019700 -15.1 19.7 3.4 21.9 -6.5
North
North Shore - Browns Bay House 3 793 18 670 - 780 690 4.1 16.9 1208200 -13.2 17.8 3.0 20.0 -0.7
North Shore - Rothesay/Murrays/
House 3 1136 30 720 - 850 800 11.1 26.0 1465800 -13.1 19.4 2.8 27.8 5.5
Mairangi Bays
North Shore - Rothesay/Murrays/
House 4 1829 36 820 - 1100 950 15.9 25.0 1647000 -15.1 11.2 3.0 36.4 12.4
Mairangi Bays
North Shore - Takapuna Flat 2 792 0 - 0 0.0 0.0 1005750 -12.1 17.5 0.0 0.0 0.0
North Shore - Takapuna House 2 188 24 573 - 650 600 0.0 14.3 1554550 -15.9 22.3 2.0 18.9 -6.6
North Shore - Takapuna House 3 1181 30 630 - 800 733 -6.4 1.8 1845750 -12.5 29.7 2.1 7.0 -21.5
North Shore - Devonport Flat 2 521 0 - 0 0.0 0.0 1012500 -10.9 22.1 0.0 0.0 0.0
North Shore - Devonport House 3 1562 21 770 - 895 825 8.6 16.2 2009850 -4.7 23.7 2.1 13.9 -6.0
North Shore - North Harbour/Pinehill House 3 908 30 725 - 800 770 2.7 22.2 1247000 -10.3 13.3 3.2 14.4 7.9
North Shore - North Harbour/Pinehill House 4 1332 21 856 - 945 895 5.3 21.8 1473800 -10.3 13.6 3.2 17.4 7.2
North Shore - Greenhithe/Unsworth
House 3 1166 21 650 - 750 680 4.6 17.2 1163750 -14.0 19.0 3.0 21.7 -1.4
Heights

EXPLANATION OF STATISTICAL TERMS

No. of Properties: Total number of residential properties. No. of Bonds: Total number of bonds lodged in last three months. Median Rent: Weekly rent based on the bonds lodged in the latest three months.
Rent Quartile Range: Inter-quartile range of weekly rent based on the bonds lodged in the latest three months. Median Value: The median value of properties in the group based on estimating the current
market value of each property using our E-Valuer at the end of the latest month. Gross Yield: Annualised median rent as a percentage of median property value for specified time period.

NZ PROPERTY INVESTOR 69
RENTAL & SALES STATISTICS SEPTEMBER 2023
trusted data

RENT MEDIAN RENT MEDIAN VALUE YIELD

RENTAL AREA NO. OF
TYPE BEDS PROPERTIES NO. OF
BONDS QUARTILE 1 YR 5 YR 1 YR 5 YR 1 YR 5 YR
RANGE CURRENT CHANGE CHANGE CURRENT CHANGE CHANGE CURRENT CHANGE CHANGE
North Shore - Sunnynook/Westlake Flat 2 647 6 550 - 600 570 5.6 14.0 938950 -9.7 18.3 3.2 16.8 -3.6
North Shore - Sunnynook/Westlake House 2 206 33 535 - 646 600 5.3 15.4 1145850 -14.4 12.6 2.7 23.0 2.4
North Shore - Sunnynook/Westlake House 3 1783 57 685 - 780 740 13.8 22.3 1271500 -13.8 15.2 3.0 32.1 6.2
North Shore - Sunnynook/Westlake House 4 937 24 800 - 950 860 13.2 21.1 1608100 -23.8 22.4 2.8 48.4 -1.1
North Shore - Glendhu/Glenfield Flat 2 580 12 510 - 585 560 10.9 36.6 736350 -13.9 12.4 4.0 28.7 21.5
North Shore - Glendhu/Glenfield House 2 200 21 550 - 595 560 4.7 19.1 901200 -12.9 17.4 3.2 20.1 1.5
North Shore - Glendhu/Glenfield House 3 2212 54 630 - 695 670 6.3 18.6 1004450 -25.7 19.5 3.5 43.1 -0.7
North Shore - Hillcrest/Northcote Flat 2 653 9 520 - 569 538 -2.2 12.1 792950 -13.3 15.8 3.5 12.8 -3.2
North Shore - Hillcrest/Northcote House 2 166 24 560 - 620 585 2.6 17.0 1093050 -13.2 13.2 2.8 18.2 3.4
North Shore - Hillcrest/Northcote House 3 1526 36 650 - 750 700 7.7 19.7 1242800 -12.9 20.0 2.9 23.6 -0.3
North Shore - Hillcrest/Northcote House 4 1130 18 800 - 900 825 0.6 12.2 1469000 -15.4 12.6 2.9 18.9 -0.3
North Shore - Beachhaven/Birkdale House 2 422 24 550 - 610 580 5.5 23.4 935700 -7.8 22.8 3.2 14.3 0.5
North Shore - Beachhaven/Birkdale House 3 3380 57 630 - 700 673 6.8 22.4 991600 -9.9 23.2 3.5 18.5 -0.7
North Shore - Chatswood/
Flat 2 453 0 - 0 0.0 0.0 811700 -5.8 19.1 0.0 0.0 0.0
Birkenhead/Northcote Point
North Shore - Chatswood/
House 2 248 12 588 - 676 610 8.9 22.0 1240850 -17.2 17.2 2.6 31.5 4.1
Birkenhead/Northcote Point
North Shore - Chatswood/
House 3 1877 27 680 - 821 765 14.2 17.7 1419600 -16.5 26.4 2.8 36.7 -6.9
Birkenhead/Northcote Point
North Shore - Chatswood/
House 4 1672 21 800 - 1000 940 9.3 34.9 1622950 -13.7 21.3 3.0 26.6 11.2
Birkenhead/Northcote Point
Waitakere - West Harbour House 3 2070 36 630 - 750 690 5.3 15.0 1083550 -17.7 25.7 3.3 28.0 -8.5
Waitakere - West Harbour House 4 2310 24 805 - 895 840 5.0 12.0 1374500 -14.7 37.7 3.2 23.1 -18.7
Waitakere - Massey/Royal Heights House 3 2958 66 596 - 680 650 8.3 30.0 934550 -11.9 25.6 3.6 22.9 3.5
Waitakere - Massey/Royal Heights House 4 1175 21 684 - 804 750 7.1 29.3 1063400 -11.9 27.8 3.7 21.7 1.2
Waitakere - Te Atatu Peninsula House 3 1187 42 625 - 688 650 1.1 18.2 1064850 -12.1 20.0 3.2 15.1 -1.5
Waitakere - Te Atatu House 3 717 27 620 - 680 630 0.0 21.2 925850 -13.4 15.1 3.5 15.5 5.3
Waitakere - Ranui House 3 1593 21 600 - 650 630 5.9 31.3 799750 -21.9 21.4 4.1 35.6 8.1
Waitakere - Henderson Flat 2 846 9 489 - 503 495 5.8 16.5 672550 -9.5 22.2 3.8 16.9 -4.7
Waitakere - Henderson House 2 621 27 510 - 555 550 10.0 23.6 791650 -13.5 18.6 3.6 27.1 4.2
Waitakere - Henderson House 3 4469 102 596 - 650 630 5.9 23.5 934350 -13.1 24.7 3.5 21.9 -0.9
Waitakere - Henderson House 4 2343 33 715 - 820 760 1.6 17.8 1082200 -13.4 17.3 3.7 17.3 0.5
Waitakere - Glendene House 3 1720 30 600 - 665 630 4.5 26.3 888750 -16.9 16.6 3.7 25.8 8.3
Waitakere - Kelston House 3 1474 39 600 - 650 630 5.9 23.5 921100 -11.0 30.5 3.6 18.9 -5.3
Waitakere - Glen Eden House 3 2452 36 585 - 650 620 3.3 25.3 858750 -12.1 14.0 3.8 17.6 9.9
Waitakere - Titirangi House 2 651 12 490 - 561 500 -2.9 -1.0 925800 -13.5 23.0 2.8 12.2 -19.5
Waitakere - Titirangi House 3 3955 33 630 - 700 675 3.8 20.5 1105950 -7.1 28.2 3.2 11.8 -5.9
Waitakere - New Lynn Flat 2 974 12 491 - 585 500 4.2 16.3 656100 -10.8 15.5 4.0 16.8 0.7
Waitakere - New Lynn House 2 424 48 485 - 593 530 1.0 17.8 890850 -15.3 13.6 3.1 19.1 3.7
Waitakere - New Lynn House 3 1741 60 605 - 670 650 8.3 22.6 991300 -8.8 22.8 3.4 18.7 -0.1
Waitakere - Western Beaches/Rural House 2 569 12 515 - 613 570 -1.7 28.1 1008300 -4.5 31.0 2.9 2.9 -2.2
Waitakere - Western Beaches/Rural House 3 1753 21 630 - 700 680 9.7 33.3 1058950 -9.7 15.9 3.3 21.5 15.0
Auckland - Central East Apt 1 4883 201 350 - 460 400 14.3 -2.4 334050 -10.3 -18.7 6.2 27.4 20.0
Auckland - Central East Apt 2 2998 114 519 - 680 555 15.6 2.8 599850 -11.4 -13.6 4.8 30.5 18.9
Auckland - Parnell Apt 1 256 24 484 - 584 525 0.0 6.1 570500 -12.7 8.2 4.8 14.5 -2.0
Auckland - Parnell Apt 2 376 21 650 - 800 710 5.2 0.7 1059300 -17.6 7.1 3.5 27.6 -6.0
Auckland - Parnell House 3 615 9 825 - 1250 950 -4.0 11.8 2502400 -10.4 9.7 2.0 7.1 1.9
Auckland - Herne Bay/St Marys Apt 2 223 15 701 - 1011 768 14.1 14.3 0 0.0 0.0 0.0 0.0 0.0
Auckland - Ponsonby/Freemans Bay Apt 1 204 15 491 - 656 540 1.3 -3.6 646900 0.0 0.0 4.3 0.0 0.0
Auckland - Ponsonby/Freemans Bay Flat 2 371 0 - 0 0.0 0.0 1035000 -10.6 14.2 0.0 0.0 0.0
Auckland - Ponsonby/Freemans Bay House 3 1269 33 898 - 1123 995 7.0 11.8 2465250 -11.3 32.9 2.1 20.7 -15.9
Auckland - Pt Chevalier House 3 1335 21 693 - 893 795 4.6 14.9 1872000 -11.7 19.6 2.2 18.4 -3.9
Auckland - Grey Lynn/Arch Hill Apt 1 364 24 515 - 600 550 -1.8 12.2 565400 -8.8 5.1 5.1 7.7 6.8
Auckland - Grey Lynn/Arch Hill Apt 2 485 12 750 - 900 875 16.7 38.9 947550 -2.3 5.4 4.8 19.4 31.7
Auckland - Grey Lynn/Arch Hill House 4 508 6 925 - 1475 1250 -10.7 45.0 2611800 -16.6 39.7 2.5 7.1 3.8
Auckland - Westmere/Surrey
House 3 1124 21 855 - 1000 900 -5.3 13.6 2302900 -15.9 35.2 2.0 12.6 -16.0
Crescent
Auckland - Mt Eden Flat 1 719 27 390 - 448 423 0.7 11.3 533550 -13.8 7.7 4.1 16.8 3.3
Auckland - Mt Eden Flat 2 800 15 523 - 596 558 9.4 16.3 816350 -10.2 9.5 3.6 21.8 6.1
Auckland - Mt Eden House 3 950 15 791 - 938 871 8.9 21.0 2215450 -11.0 29.2 2.0 22.3 -6.4
Auckland - Waterview/Avondale
Flat 2 339 6 435 - 525 450 -9.1 0.0 739000 -7.6 18.2 3.2 -1.6 -15.4
Heights
Auckland - Waterview/Avondale
House 3 977 24 650 - 750 698 0.4 22.5 1193000 -5.2 28.2 3.0 5.9 -4.5
Heights
Auckland - Avondale House 3 1715 39 650 - 758 708 11.0 26.4 1027200 -11.7 24.6 3.6 25.7 1.5
Auckland - Blockhouse Bay/
House 3 1669 39 650 - 750 680 4.6 17.2 1162550 -12.1 23.6 3.0 19.1 -5.2
New Windsor
Auckland - Mt Albert/Owairaka Flat 2 787 24 523 - 578 540 8.0 16.9 729450 -10.9 9.8 3.8 21.1 6.4
Auckland - Mt Albert/Owairaka House 3 1463 30 675 - 821 730 5.3 21.7 1733500 -3.1 44.6 2.2 8.7 -15.9

70 NZ PROPERTY INVESTOR
RENTAL & SALES STATISTICS SEPTEMBER 2023
trusted data

RENT MEDIAN RENT MEDIAN VALUE YIELD

RENTAL AREA NO. OF
TYPE BEDS PROPERTIES NO. OF
BONDS QUARTILE 1 YR 5 YR 1 YR 5 YR 1 YR 5 YR
RANGE CURRENT CHANGE CHANGE CURRENT CHANGE CHANGE CURRENT CHANGE CHANGE
Auckland - Mt Roskill/Wesley House 3 828 18 600 - 673 650 0.0 18.2 1105350 -11.1 19.3 3.1 12.5 -1.0
Auckland - St Lukes/Sandringham Flat 2 871 18 503 - 578 540 11.8 15.6 709400 -11.2 10.9 4.0 25.8 4.3
Auckland - St Lukes/Sandringham House 3 1263 36 698 - 898 790 13.7 21.5 1647750 -14.6 25.2 2.5 33.1 -2.9
Auckland - Epsom Flat 2 712 9 553 - 595 575 4.5 15.0 970550 -12.5 5.7 3.1 19.5 8.8
Auckland - Three Kings House 3 574 15 683 - 791 730 5.0 10.6 1282150 -14.0 16.7 3.0 22.1 -5.2
Auckland - Royal Oak/One Tree Hill House 2 310 21 591 - 660 635 9.5 14.4 1549550 -11.6 32.6 2.1 23.8 -13.7
Auckland - Royal Oak/One Tree Hill House 3 1453 39 721 - 820 755 4.1 16.2 1723350 -12.9 12.8 2.3 19.6 3.0
Auckland - Royal Oak/One Tree Hill House 4 1207 21 850 - 1190 950 2.7 17.0 2313850 -8.5 25.1 2.1 12.3 -6.5
Auckland - Onehunga/Oranga/
Flat 2 1742
7 27 500 - 558 540 1.9 12.0 758550 -12.3 15.6 3.7 16.1 -3.1
Te Papapa
Auckland - Onehunga/Oranga/
House 2 895 39 550 - 643 620 9.7 20.4 1160350 -13.6 22.8 2.8 27.1 -2.0
Te Papapa
Auckland - Onehunga/Oranga/
House 3 2356 51 655 - 775 700 4.5 16.3 1394650 -7.6 31.7 2.6 13.0 -11.7
Te Papapa
Auckland - Remuera Flat 2 445 6 569 - 623 598 15.0 15.0 1011650 -6.8 8.2 3.1 23.3 6.3
Auckland - Remuera House 3 1736 27 815 - 1013 878 4.5 3.3 2337650 -7.9 11.3 2.0 13.5 -7.2
Auckland - Remuera House 4 2013 30 1080 - 1470 1200 7.1 34.1 3472950 -9.0 16.5 1.8 17.8 15.1
Auckland - Remuera South/
House 3 1311 36 750 - 890 800 0.9 14.3 1574300 -10.0 16.8 2.6 12.1 -2.1
Meadowbank South
Auckland - Penrose/Mt Wellington
Flat 2 466 9 460 - 550 490 1.0 16.7 691700 -6.4 21.3 3.7 7.9 -3.8
South
Auckland - Penrose/Mt Wellington
House 3 1308 45 650 - 724 680 4.6 23.6 1139450 -11.3 32.4 3.1 17.9 -6.6
South
Auckland - Mission Bay/Orakei House 3 1153 21 790 - 1075 980 21.0 30.7 1980350 -8.9 15.6 2.6 32.8 13.0
Auckland - St Helliers/Glendowie House 3 1842 15 700 - 850 800 0.6 3.2 1931450 -10.4 17.8 2.2 12.3 -12.3
Auckland - St Helliers/Glendowie House 4 1664 15 853 - 1200 1000 0.5 0.0 2410200 -15.7 12.5 2.2 19.3 -11.1
Auckland - Ellerslie Flat 2 621 6 500 - 599 548 8.5 21.8 753900 -10.4 14.0 3.8 21.1 6.8
Auckland - Ellerslie House 3 1263 30 720 - 850 760 10.1 16.9 1360650 -11.2 21.6 2.9 24.0 -3.8
Auckland - Glen Innes/Pt England/
House 3 1274 42 625 - 750 690 -1.4 21.1 1232850 -8.0 28.7 2.9 7.1 -5.9
Wai O Taiki
Auckland - Mt Wellington North Flat 2 609 6 495 - 545 530 2.9 20.5 697950 -10.7 17.1 3.9 15.2 2.9
Auckland - Otahuhu Flat 2 503 18 443 - 500 480 6.7 18.5 516100 -7.6 16.6 4.8 15.5 1.7
Auckland - Otahuhu House 3 1046 21 593 - 673 650 6.6 27.5 919300 -12.0 41.1 3.7 21.1 -9.7
Auckland - Waiheke Island House 2 1678 21 510 - 680 610 8.0 32.6 1437850 -5.2 31.3 2.2 13.8 1.0
Auckland - Waiheke Island House 3 1973 12 685 - 818 750 3.4 25.0 1686250 -13.1 9.6 2.3 19.0 14.0
Auckland - Central West Apt 1 4682 210 400 - 503 453 19.2 13.3 389800 -12.1 -9.3 6.0 35.6 24.9
Auckland - Central West Apt 2 3945 201 479 - 640 550 19.6 7.8 536550 -13.1 -13.1 5.3 37.6 24.1
Auckland - Central West Apt 3 543 15 608 - 868 700 23.9 -6.7 941950 -15.5 -4.2 3.9 46.6 -2.6
Auckland - Lynfield House 3 1451 30 650 - 730 680 4.6 15.3 1145600 -11.2 19.8 3.1 17.8 -3.8
Auckland - Newton/Grafton Apt 1 895 42 400 - 550 450 7.1 3.0 374800 -12.0 -13.0 6.2 21.7 18.4
Auckland - Newton/Grafton Apt 2 1040 42 553 - 699 625 13.6 8.7 522400 -15.3 -2.7 6.2 34.2 11.7
Auckland - Eden Terrace Apt 2 590 15 573 - 670 615 7.3 7.5 707950 -6.7 12.7 4.5 15.0 -4.6
Auckland - Hillsborough House 3 1505 30 663 - 760 700 7.7 21.7 1098650 -11.3 16.7 3.3 21.4 4.3
Auckland - Meadowbank House 3 753 6 813 - 956 875 5.4 26.8 1733750 -9.8 17.4 2.6 16.9 8.0
Auckland - St Johns Flat 2 346 9 473 - 543 520 -3.7 22.4 823150 -19.3 11.6 3.3 19.3 9.7
Auckland - Mt Wellington Flat 2 345 6 510 - 550 530 6.0 21.8 715950 -7.5 21.0 3.8 14.6 0.7
Manukau - Mangere Bridge/Airport House 3 1667 24 650 - 750 700 2.9 24.6 1076250 -19.3 27.1 3.4 27.6 -2.0
Manukau - Mangere House 3 2316 24 624 - 705 650 8.3 26.2 888450 -13.2 26.6 3.8 24.8 -0.3
Manukau - Mangere House 4 654 18 695 - 778 735 2.1 16.7 941650 -14.7 36.1 4.1 19.7 -14.3
Manukau - Otara House 3 2215 30 590 - 655 630 5.0 26.0 764800 -12.1 34.0 4.3 19.4 -5.9
Manukau - Papatoetoe North Flat 2 623 6 531 - 565 543 4.4 23.4 625650 -10.8 18.1 4.5 17.1 4.5
Manukau - Papatoetoe North House 3 911 27 650 - 700 680 7.9 25.9 898350 -8.9 26.6 3.9 18.5 -0.5
Manukau - Manukau Central House 3 1256 24 650 - 700 680 4.6 21.4 820450 -9.8 20.3 4.3 16.0 1.0
Manukau - Botony Downs House 3 2367 42 670 - 750 725 6.6 20.8 1205850 -12.0 22.5 3.1 21.2 -1.4
Manukau - Botony Downs House 4 2397 24 796 - 899 845 5.6 23.4 1476550 -9.5 15.8 3.0 16.7 6.5
Manukau - Dannemora House 3 1181 24 680 - 755 700 0.0 11.1 1279600 -8.8 30.1 2.8 9.7 -14.6
Manukau - Dannemora House 4 2805 39 800 - 850 850 6.3 20.2 1394550 -7.0 19.4 3.2 14.3 0.7

TAX AND PROPERTY INVESTMENT SIMPLIFIED

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Investments. Great Advice and Affordable Service.
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NZ PROPERTY INVESTOR 71
RENTAL & SALES STATISTICS SEPTEMBER 2023
trusted data

RENT MEDIAN RENT MEDIAN VALUE YIELD

RENTAL AREA NO. OF
TYPE BEDS PROPERTIES NO. OF
BONDS QUARTILE 1 YR 5 YR 1 YR 5 YR 1 YR 5 YR
RANGE CURRENT CHANGE CHANGE CURRENT CHANGE CHANGE CURRENT CHANGE CHANGE
Manukau - Howick House 2 195 21 560 - 595 570 3.6 16.3 1129600 -11.0 24.6 2.6 16.5 -6.6
Manukau - Howick House 3 1685 30 650 - 698 665 1.5 19.8 1194550 -16.2 13.9 2.9 21.2 5.2
Manukau - Howick House 4 1641 18 796 - 850 825 5.1 21.3 1503000 -17.9 15.8 2.9 28.0 4.8
Manukau - Half Moon Bay/Farm Cove House 3 1447 36 630 - 700 650 0.3 16.1 1295950 -12.0 21.6 2.6 14.0 -4.5
Manukau - Highland Park House 3 1905 48 650 - 680 660 1.5 15.8 1315100 -14.7 35.5 2.6 19.0 -14.5
Manukau - Highland Park House 4 1017 15 720 - 830 800 3.9 27.0 1473800 -13.3 15.0 2.8 19.9 10.4
Manukau - Pakuranga Flat 2 557 6 540 - 615 540 8.0 24.1 767050 -12.6 16.5 3.7 23.5 6.6
Manukau - Pakuranga House 3 1625 42 650 - 731 678 4.3 22.2 1252500 -9.6 25.6 2.8 15.4 -2.8
Manukau - Manukau and Manurewa
House 3 2362 30 673 - 738 693 2.7 19.5 985050 -10.6 19.8 3.7 14.9 -0.3
Heights
Manukau - Manukau and Manurewa
House 4 1924 24 750 - 840 800 2.6 22.1 1136500 -11.3 20.6 3.7 15.7 1.3
Heights
Manukau - Wattle Downs/Conifer
House 3 1505 27 623 - 698 650 0.8 22.6 971600 -15.9 33.2 3.5 19.8 -7.9
Grove
Manukau - Manurewa North Flat 2 840 18 480 - 570 525 8.7 19.3 586650 -14.7 20.6 4.7 27.4 -1.1
Manukau - Manurewa North House 2 845 33 498 - 545 520 0.0 18.2 675500 -12.9 25.5 4.0 14.9 -5.8
Manukau - Manurewa North House 3 4233 138 600 - 680 650 4.8 30.0 775200 -13.1 20.0 4.4 20.7 8.3
Manukau - Manurewa North House 4 919 42 690 - 795 750 7.1 29.3 942850 -13.1 22.1 4.1 23.3 5.9
Manukau - Mangere East House 3 1153 21 640 - 680 650 6.6 25.0 822100 -17.3 25.9 4.1 28.8 -0.7
Manukau - Papatoetoe South Flat 2 1322 15 500 - 600 540 8.0 24.1 619700 -14.9 10.5 4.5 26.9 12.4
Manukau - Papatoetoe South House 3 985 30 630 - 725 690 6.2 27.8 879850 -6.2 17.3 4.1 13.2 9.0
Manukau - Papatoetoe West House 3 1039 30 640 - 700 650 0.8 20.4 852250 -8.8 25.6 4.0 10.5 -4.2
Manukau - Weymouth House 3 1414 18 600 - 700 650 0.0 28.7 783100 -12.7 27.6 4.3 14.6 0.9
Manukau - Maraetai/Clevedon House 3 1117 18 613 - 780 700 4.5 21.7 1192250 -8.8 16.6 3.1 14.5 4.4
Manukau - Maraetai/Clevedon House 4 2408 27 820 - 950 850 1.2 21.4 1436150 -9.3 22.6 3.1 11.6 -0.9
Papakura - Takanini/Ardmore House 3 1639 39 625 - 680 670 3.1 26.4 882200 -9.6 25.9 3.9 14.0 0.4
Papakura - Takanini/Ardmore House 4 1328 30 730 - 820 755 3.4 24.8 1029200 -11.6 18.2 3.8 17.0 5.6
Papakura - Papakura/Drury/Karaka Flat 2 763 12 479 - 523 485 4.3 24.4 619700 -15.7 25.2 4.1 23.7 -0.7
Papakura - Papakura/Drury/Karaka House 2 868 39 499 - 540 520 4.0 20.9 686350 -12.9 30.0 3.9 19.4 -7.0
Papakura - Papakura/Drury/Karaka House 3 4536 99 600 - 693 650 3.2 32.7 821900 -13.1 35.0 4.1 18.7 -1.7
Papakura - Papakura/Drury/Karaka House 4 2335 60 695 - 800 755 4.9 25.8 1071850 -15.3 29.9 3.7 23.8 -3.1
Franklin - Pukekohe/Tuakau House 2 569 18 480 - 550 520 8.3 23.8 692600 -10.5 36.5 3.9 21.0 -9.3
Franklin - Pukekohe/Tuakau House 3 4322 72 550 - 630 600 3.4 30.4 846950 -5.6 32.5 3.7 9.6 -1.5
Franklin - Pukekohe/Tuakau House 4 2754 48 663 - 720 700 7.7 27.3 986600 -14.5 30.9 3.7 25.9 -2.7
Franklin - Waiuku House 3 1642 18 550 - 598 580 0.0 20.8 792750 -9.2 35.3 3.8 10.1 -10.7
Franklin - Rural Franklin House 3 1888 39 576 - 680 630 5.0 37.0 841450 -10.8 25.5 3.9 17.7 9.1
Franklin - Rural Franklin House 4 1630 27 606 - 828 698 -6.9 23.1 1038850 -12.4 28.2 3.5 6.2 -4.0

WAIKATO / BAY OF PLENTY

Thames/Coromandel - Entire District House 2 3953 30 423 - 500 475 9.2 43.9 956350 -11.4 61.2 2.6 23.2 -10.7
Thames/Coromandel - Entire District House 3 9448 63 500 - 600 550 5.8 46.7 1072850 -13.8 46.3 2.7 22.7 0.2
Hauraki - Entire District House 3 3310 42 405 - 550 500 9.9 42.9 641700 -5.8 77.4 4.1 16.6 -19.5
Waikato - Huntly House 3 1528 27 450 - 545 500 4.2 42.9 501150 -3.6 48.5 5.2 8.1 -3.8
Waikato - Rural Waikato District House 2 933 33 450 - 500 480 1.1 37.1 716750 -4.1 64.2 3.5 5.4 -16.5
Waikato - Rural Waikato District House 3 2979 75 500 - 630 550 2.2 41.0 750600 -10.4 55.4 3.8 14.0 -9.2
Waikato - Rural Waikato District House 4 1053 21 625 - 728 650 1.6 36.3 905500 -10.1 45.0 3.7 13.0 -6.0
Matamata/Piako - Entire District Flat 2 518 0 - 0 0.0 0.0 507750 -7.3 45.1 0.0 0.0 0.0
Matamata/Piako - Entire District House 2 778 27 400 - 480 450 12.5 46.6 599050 -1.6 74.1 3.9 14.3 -15.8
Matamata/Piako - Entire District House 3 4774 60 480 - 550 520 10.6 40.5 673550 -3.4 54.1 4.0 14.5 -8.8
Matamata/Piako - Entire District House 4 1867 18 450 - 610 550 4.8 37.5 834250 -7.4 40.6 3.4 13.2 -2.2
Hamilton - Te Kowhai/St Andrews/
House 2 725 45 500 - 550 540 5.3 42.1 685650 -6.3 48.2 4.1 12.4 -4.1
Queenwood
Hamilton - Te Kowhai/St Andrews/
House 3 4775 102 555 - 620 580 1.8 30.3 820850 -4.5 49.4 3.7 6.5 -12.7
Queenwood
Hamilton - Te Kowhai/St Andrews/
House 4 3326 36 680 - 750 700 6.9 32.1 1076450 -6.5 40.8 3.4 14.3 -6.2
Queenwood
Hamilton - Flagstaff/Rototuna House 3 1741 51 600 - 650 640 3.2 30.6 915350 -7.8 39.7 3.6 11.9 -6.5
Hamilton - Flagstaff/Rototuna House 4 4051 63 680 - 750 730 5.8 32.7 1049800 -10.7 36.7 3.6 18.5 -2.9
Hamilton - Fairfield/Fairview Downs House 2 764 33 473 - 540 510 6.3 41.7 584100 -7.0 50.3 4.5 14.2 -5.7
Hamilton - Fairfield/Fairview Downs House 3 3033 54 540 - 600 570 5.6 35.7 724100 -4.5 64.2 4.1 10.5 -17.4

Ray White Hamilton

Online Rentals Ltd MREINZ

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72 NZ PROPERTY INVESTOR
RENTAL & SALES STATISTICS SEPTEMBER 2023
trusted data

RENT MEDIAN RENT MEDIAN VALUE YIELD

RENTAL AREA NO. OF
TYPE BEDS PROPERTIES NO. OF
BONDS QUARTILE 1 YR 5 YR 1 YR 5 YR 1 YR 5 YR
RANGE CURRENT CHANGE CHANGE CURRENT CHANGE CHANGE CURRENT CHANGE CHANGE
Hamilton - Fairfield/Fairview Downs House 4 717 21 608 - 665 640 7.0 37.0 790200 -8.7 46.8 4.2 17.3 -6.7
Hamilton - Hamilton East/University Flat 2 787 18 373 - 473 440 14.3 46.7 518950 -7.2 39.0 4.4 23.2 5.5
Hamilton - Hamilton East/University House 2 658 75 445 - 520 480 6.7 26.3 718150 -0.5 57.6 3.5 7.2 -19.9
Hamilton - Hamilton East/University House 3 2006 72 540 - 600 570 3.6 30.4 787700 -7.7 41.8 3.8 12.3 -8.0
Hamilton - Hamilton East/University House 4 908 39 570 - 700 650 8.3 30.0 906000 -9.5 42.7 3.7 19.7 -8.9
Hamilton - Hillcrest/Silverdale/
House 3 1607 48 550 - 633 590 9.3 31.1 762650 -12.1 40.3 4.0 24.3 -6.6
Tamahere
Hamilton - Dinsdale North/Nawton House 3 3329 57 534 - 595 560 1.8 33.3 709300 -6.0 50.0 4.1 8.3 -11.1
Hamilton - Dinsdale South/Frankton House 3 1602 48 540 - 590 570 7.5 35.7 666750 -6.7 48.2 4.4 15.2 -8.4
Hamilton - Hamilton Central/Maeroa/
Flat 2 472 18 360 - 435 400 3.1 37.9 0 0.0 0.0 0.0 0.0 0.0
Frankton Junction
Hamilton - Hamilton Central/Maeroa/
House 3 1011 54 530 - 595 570 1.8 26.7 779050 -2.9 52.0 3.8 4.9 -16.7
Frankton Junction
Hamilton - Hamilton Central/Maeroa/
House 4 300 12 620 - 670 650 9.2 25.0 0 0.0 0.0 0.0 0.0 0.0
Frankton Junction
Hamilton - Deanwell/Melville/Fitzroy Flat 2 520 6 405 - 470 460 4.5 35.3 471300 -10.8 34.5 5.1 17.3 0.6
Hamilton - Deanwell/Melville/Fitzroy House 2 608 42 453 - 529 495 4.2 30.3 651650 -10.9 49.8 3.9 17.0 -13.0
Hamilton - Deanwell/Melville/Fitzroy House 3 3466 102 540 - 600 580 7.4 38.1 682900 -10.3 43.5 4.4 19.7 -3.8
Hamilton - Deanwell/Melville/Fitzroy House 4 990 15 605 - 684 650 12.1 42.2 803900 -8.8 43.5 4.2 22.9 -0.9
Waipa - Cambridge/Leamington House 2 627 24 481 - 565 520 9.5 36.8 709900 -13.5 42.9 3.8 26.5 -4.2
Waipa - Cambridge/Leamington House 3 2717 51 573 - 665 630 9.6 40.0 830400 -9.5 41.6 3.9 21.1 -1.1
Waipa - Cambridge/Leamington House 4 1338 12 673 - 753 710 4.4 39.2 1085350 -7.8 41.1 3.4 13.3 -1.3
Waipa - Te Awamutu House 3 2511 33 550 - 600 575 8.5 44.8 666500 -7.5 46.4 4.5 17.3 -1.1
Waipa - Rural Waipa House 3 1598 39 530 - 620 570 8.6 42.5 821350 -7.0 53.5 3.6 16.7 -7.1
Waipa - Rural Waipa House 4 1971 36 689 - 800 735 8.1 38.7 1163450 -6.7 54.6 3.3 15.8 -10.3
Otorohanga/Waitomo - Both Districts House 3 2042 24 375 - 455 400 0.0 53.8 440900 -1.9 67.9 4.7 1.9 -8.4
South Waikato - Entire District House 3 4492 57 460 - 500 485 7.8 79.6 421700 -13.5 91.6 6.0 24.6 -6.2
South Waikato - Entire District House 4 904 18 461 - 548 510 4.1 50.0 521550 -11.3 78.2 5.1 17.3 -15.8
Taupo - Taupo Central/Tauhara House 2 583 21 390 - 496 430 -4.4 43.3 609150 -4.3 67.9 3.7 -0.1 -14.7
Taupo - Taupo Central/Tauhara House 3 1553 24 520 - 585 550 10.0 44.7 659700 -8.8 59.5 4.3 20.6 -9.3
Taupo - Taupo West/Taupo South House 3 3497 42 565 - 650 600 9.1 46.3 849800 -11.5 49.7 3.7 23.3 -2.2
Taupo - Taupo West/Taupo South House 4 1897 6 710 - 750 730 0.0 49.0 1075450 -8.1 52.3 3.5 0.0 -2.2
Taupo - Rural Taupo House 3 3276 36 430 - 530 460 2.2 84.0 719750 -3.7 88.2 3.3 6.2 -2.3
Western Bay of Plenty - Kaimai/
House 2 668 18 500 - 560 550 6.8 58.5 0 0.0 0.0 0.0 0.0 0.0
Te Puke
Western Bay of Plenty - Kaimai/
House 3 2921 51 580 - 730 680 8.8 67.9 815700 -8.6 53.0 4.3 19.0 9.7
Te Puke
Western Bay of Plenty - Waihi Beach/
House 3 3633 33 550 - 650 580 5.5 34.9 978900 -6.0 58.6 3.1 12.2 -14.9
Omokoroa
Western Bay of Plenty - Waihi Beach/
House 4 1943 15 643 - 798 695 -0.7 31.1 1264800 -8.6 61.9 2.9 8.6 -19.0
Omokoroa
Tauranga - Mt Maunganui Apt 2 617 24 573 - 650 595 1.7 29.3 0 0.0 0.0 0.0 0.0 0.0
Tauranga - Mt Maunganui Flat 2 763 9 550 - 596 563 12.6 46.2 887750 -9.9 49.8 3.3 25.0 -2.4
Tauranga - Mt Maunganui House 2 721 42 575 - 660 615 7.3 46.4 1153750 -8.9 46.5 2.8 17.8 -0.0
Tauranga - Mt Maunganui House 3 4102 102 650 - 750 680 4.6 36.0 1203400 -12.1 43.4 2.9 19.0 -5.2
Tauranga - Mt Maunganui House 4 1394 21 795 - 975 850 9.0 54.5 1972500 -8.0 58.9 2.2 18.4 -2.7
Tauranga - Papamoa Beach House 2 741 27 550 - 600 578 6.1 44.5 780650 -11.3 50.7 3.9 19.6 -4.1
Tauranga - Papamoa Beach House 3 5505 114 670 - 730 695 6.9 39.0 967750 -8.6 50.9 3.7 17.0 -7.9
Tauranga - Papamoa Beach House 4 3458 39 750 - 850 790 6.8 43.6 1262750 -3.4 56.7 3.3 10.5 -8.4
Tauranga - Pyes Pa/Hairini/
House 3 4553 54 600 - 690 650 3.2 36.8 875450 -4.3 51.1 3.9 7.8 -9.4
Welcome Bay
Tauranga - Pyes Pa/Hairini/
House 4 2900 21 725 - 800 750 7.1 36.4 1080400 -2.5 48.3 3.6 9.8 -8.0
Welcome Bay
Tauranga - Tauranga Central/Greerton Flat 2 990 9 485 - 565 555 11.0 48.0 602200 -9.3 47.8 4.8 22.4 0.1
Tauranga - Tauranga Central/Greerton House 2 1420 51 530 - 600 570 9.6 46.2 665000 -14.8 43.3 4.5 28.7 2.0
Tauranga - Tauranga Central/Greerton House 3 4281 75 600 - 675 650 6.6 49.4 751450 -7.3 45.8 4.5 14.9 2.5
Tauranga - Tauranga Central/Greerton House 4 1182 18 628 - 850 690 0.7 35.3 1001250 -7.4 49.1 3.6 8.8 -9.3
Tauranga - Bethlehem/Otumoetai Flat 2 738 6 500 - 535 510 2.0 34.2 723350 -3.9 52.2 3.7 6.1 -11.8
Tauranga - Bethlehem/Otumoetai House 2 875 27 520 - 581 550 4.8 37.5 757700 -6.7 44.1 3.8 12.3 -4.6
Tauranga - Bethlehem/Otumoetai House 3 5047 78 630 - 700 670 8.1 38.1 924700 -15.2 41.8 3.8 27.4 -2.6
Tauranga - Bethlehem/Otumoetai House 4 3045 15 755 - 875 820 9.3 46.4 1222600 -4.9 23.7 3.5 14.9 18.4
Rotorua - Holdens Bay/Owhata/
House 3 2014 33 530 - 600 560 2.8 41.8 635900 -5.7 58.1 4.6 9.0 -10.3
Ngapuna
Rotorua - Kuirau/Hillcrest/Glenholme Flat 2 461 21 409 - 470 430 8.9 48.3 0 0.0 0.0 0.0 0.0 0.0
Rotorua - Kuirau/Hillcrest/Glenholme House 2 786 30 433 - 485 460 5.7 41.5 498150 -11.5 47.6 4.8 19.5 -4.1
Rotorua - Kuirau/Hillcrest/Glenholme House 3 1951 33 540 - 600 580 5.8 41.5 605300 -11.9 50.5 5.0 20.2 -6.0
Rotorua - Pukehangi South/
House 3 2110 21 565 - 635 600 3.4 48.1 660450 -11.5 48.3 4.7 16.8 -0.1
Springfield

NZ PROPERTY INVESTOR 73
RENTAL & SALES STATISTICS SEPTEMBER 2023
trusted data

RENT MEDIAN RENT MEDIAN VALUE YIELD

RENTAL AREA NO. OF
TYPE BEDS PROPERTIES NO. OF
BONDS QUARTILE 1 YR 5 YR 1 YR 5 YR 1 YR 5 YR
RANGE CURRENT CHANGE CHANGE CURRENT CHANGE CHANGE CURRENT CHANGE CHANGE
Rotorua - Ngongotaha/Pleasant
House 2 999 21 445 - 505 465 2.2 55.0 438500 -14.9 66.6 5.5 20.1 -6.9
Heights/Koutu
Rotorua - Ngongotaha/Pleasant
House 3 4611 78 558 - 600 580 5.5 58.0 501400 -11.0 62.4 6.0 18.5 -2.7
Heights/Koutu
Rotorua - Ngongotaha/Pleasant
House 4 972 9 621 - 699 633 2.9 47.2 716250 -8.0 48.1 4.6 11.9 -0.6
Heights/Koutu
Whakatane - Whakatane Flat 2 482 6 360 - 403 370 0.0 23.3 503200 -7.2 59.3 3.8 0.0 -22.6
Whakatane - Whakatane House 2 786 24 428 - 500 450 11.1 36.4 644650 -8.6 54.6 3.6 21.6 -11.8
Whakatane - Whakatane House 3 3932 48 528 - 620 560 1.8 43.6 783100 -8.2 60.1 3.7 10.9 -10.3
Whakatane - Whakatane House 4 1441 12 600 - 750 680 13.3 51.1 0 0.0 0.0 0.0 0.0 0.0
Kawerau - Entire District House 3 1882 30 400 - 480 450 11.7 66.7 398700 -12.2 61.3 5.9 27.2 3.4
Opotiki - Entire District House 3 1285 12 413 - 455 435 8.8 45.0 571200 3.0 95.4 4.0 5.6 -25.8

HAWKE’S BAY / GISBORNE

Gisborne - Gisborne Flat 2 499 9 440 - 550 500 8.7 100.0 470050 -8.0 100.7 5.5 18.2 -0.4
Gisborne - Gisborne House 2 1247 24 463 - 565 525 5.0 75.0 519100 -8.1 114.2 5.3 14.3 -18.3
Gisborne - Gisborne House 3 5801 51 538 - 675 600 0.0 71.4 579800 -5.8 97.3 5.4 6.1 -13.1
Gisborne - Gisborne House 4 1744 15 685 - 788 725 5.1 93.3 775400 -10.6 76.7 4.9 17.6 9.4
Wairoa - Entire District House 3 1581 9 320 - 435 400 0.0 66.7 0 0.0 0.0 0.0 0.0 0.0
Hastings - Havelock North Flat 2 339 0 - 0 0.0 0.0 647300 -9.5 63.7 0.0 0.0 0.0
Hastings - Havelock North House 3 2367 24 630 - 740 675 5.8 40.6 974900 -11.0 62.3 3.6 18.8 -13.3
Hastings - Flaxmere House 3 2117 15 510 - 530 520 4.0 48.6 482150 -13.9 89.3 5.6 20.7 -21.5
Hastings - Hastings/Clive Flat 2 1657 21 413 - 476 445 -1.1 50.8 474600 -14.1 54.9 4.9 15.2 -2.6
Hastings - Hastings/Clive House 2 1158 33 450 - 529 493 1.6 51.7 603800 -14.3 57.1 4.2 18.6 -3.5
Hastings - Hastings/Clive House 3 6513 78 570 - 650 600 3.4 50.0 711550 -4.6 65.1 4.4 8.4 -9.1
Hastings - Hastings/Clive House 4 1914 12 675 - 763 735 22.5 67.0 909650 -5.1 59.0 4.2 29.1 5.0
Napier - Napier Flat 2 1069 24 413 - 495 460 2.2 53.3 0 0.0 0.0 0.0 0.0 0.0
Napier - Napier House 2 1519 45 458 - 591 540 12.5 54.3 617350 -9.5 78.0 4.5 24.3 -13.3
Napier - Napier House 3 7766 66 580 - 656 623 3.8 56.9 705450 -6.9 40.3 4.6 11.6 11.8
Napier - Napier House 4 2300 18 620 - 788 680 -1.4 41.7 982250 -13.3 49.3 3.6 13.7 -5.1
Napier - Taradale/Awatoto House 2 702 24 490 - 595 540 1.3 54.3 629300 -13.7 37.2 4.5 17.4 12.4
Napier - Taradale/Awatoto House 3 4021 36 610 - 700 650 6.6 41.3 741700 -15.7 35.3 4.6 26.5 4.5
Central Hawkes Bay - Entire District House 3 2185 24 475 - 563 540 20.0 80.0 553500 -11.6 69.6 5.1 35.8 6.1

TARANAKI
New Plymouth - New Plymouth
Flat 2 476 9 450 - 470 455 13.8 65.5 459250 -7.1 62.2 5.2 22.5 2.0
Central/Moturoa
New Plymouth - New Plymouth
House 2 473 21 428 - 553 476 17.5 44.2 567850 1.3 56.4 4.4 16.1 -7.8
Central/Moturoa
New Plymouth - New Plymouth
House 3 2490 45 579 - 653 600 11.1 57.9 611200 -4.9 51.0 5.1 16.9 4.5
Central/Moturoa
New Plymouth - Outer New Plymouth Flat 2 1319 12 390 - 470 420 6.9 44.8 490150 -0.6 59.4 4.5 7.5 -9.1
New Plymouth - Outer New Plymouth House 2 1169 51 450 - 550 500 11.1 55.3 634700 -6.7 44.1 4.1 19.0 7.8
New Plymouth - Outer New Plymouth House 3 7698 108 580 - 670 620 11.7 56.2 717650 -2.5 43.9 4.5 14.6 8.6
New Plymouth - Outer New Plymouth House 4 4158 36 691 - 800 745 14.6 65.6 947450 -2.5 58.3 4.1 17.5 4.6
New Plymouth - Waitara/Inglewood House 3 2278 24 460 - 573 520 6.1 62.5 506000 -6.6 58.9 5.3 13.7 2.3
New Plymouth - Rural New Plymouth House 3 677 12 398 - 685 550 22.2 64.2 662400 -9.2 62.1 4.3 34.6 1.3
Stratford - Entire District House 3 1444 27 478 - 550 518 17.7 72.7 457550 -8.4 79.9 5.9 28.5 -4.0
South Taranaki - Hawera House 3 2384 33 480 - 560 500 8.7 78.6 449450 -5.1 83.0 5.8 14.5 -2.4
South Taranaki - Rural South Taranaki House 3 2168 24 303 - 468 402 5.8 78.7 381450 1.6 133.2 5.5 4.1 -23.4
Ruapehu - Entire District House 3 2677 30 330 - 430 400 8.1 73.9 389950 -4.1 109.5 5.3 12.8 -17.0
Ruapehu - Entire District House 4 593 6 430 - 450 440 10.0 76.0 499500 -3.5 80.8 4.6 14.0 -2.7

MANAWATU / WHANGANUI
Whanganui - Entire District Flat 2 855 9 384 - 410 395 3.9 88.1 0 0.0 0.0 0.0 0.0 0.0
Whanganui - Entire District House 2 2263 45 380 - 450 420 5.0 61.5 427900 -15.1 116.1 5.1 23.7 -25.2
Whanganui - Entire District House 3 8707 123 470 - 550 500 6.4 66.7 481000 -8.0 95.3 5.4 15.6 -14.7
Whanganui - Entire District House 4 2704 27 543 - 630 585 6.4 53.9 665600 -5.3 80.0 4.6 12.3 -14.5
Rangitikei - Entire District House 3 2491 24 470 - 550 520 13.0 108.0 0 0.0 0.0 0.0 0.0 0.0

STRUCTURED
PROPERTY RENTAL SAFE TENANT
RENT
MANAGEMENT APPRAISAL SELECTION
COLLECTION
Call us on 07 349 3429 or email info@rotoruarentals.co.nz

74 NZ PROPERTY INVESTOR
RENTAL & SALES STATISTICS SEPTEMBER 2023
trusted data

RENT MEDIAN RENT MEDIAN VALUE YIELD

RENTAL AREA NO. OF
TYPE BEDS PROPERTIES NO. OF
BONDS QUARTILE 1 YR 5 YR 1 YR 5 YR 1 YR 5 YR
RANGE CURRENT CHANGE CHANGE CURRENT CHANGE CHANGE CURRENT CHANGE CHANGE
Manawatu - Entire District House 3 4378 54 530 - 600 570 7.5 62.9 553750 -11.2 62.0 5.4 21.1 0.6
Manawatu - Entire District House 4 1965 21 573 - 715 620 5.1 63.2 745800 -8.6 69.6 4.3 15.0 -3.8
Palmerston North - Highbury/
House 3 1553 15 528 - 580 550 2.8 61.8 510850 -13.4 64.2 5.6 18.7 -1.5
Westbrook
Palmerston North - Takaro/Cloverlea/
House 3 2667 36 580 - 620 585 8.3 53.9 558500 -16.0 55.9 5.4 29.0 -1.2
Milson
Palmerston North - Hospital/
Flat 2 308 12 383 - 473 400 12.7 60.0 0 0.0 0.0 0.0 0.0 0.0
Papaeoia
Palmerston North - Kelvin Grove/
House 3 2107 36 538 - 600 570 15.2 60.6 578550 -11.9 56.6 5.1 30.7 2.6
Roslyn
Palmerston North - Awapuni South/
House 3 1238 21 569 - 650 610 17.3 69.4 603200 -10.9 46.3 5.3 31.7 15.8
Westend
Palmerston North - Terrace End/
House 3 1477 33 555 - 620 590 7.3 51.3 636600 -10.8 56.5 4.8 20.2 -3.3
Hokowhitu East
Palmerston North - Hokowhitu West
Flat 2 223 6 400 - 450 450 0.0 95.7 458950 -13.8 60.7 5.1 0.0 21.8
and Lagoon
Tararua - Entire District
T House 3 2720 30 400 - 463 440 10.0 76.0 397050 -13.8 104.3 5.8 27.6 -13.9
Horowhenua - Entire District Flat 2 856 12 395 - 420 420 10.5 68.0 379950 -21.4 62.4 5.7 40.6 3.4
Horowhenua - Entire District House 2 2039 51 410 - 450 420 -1.2 52.7 492000 -19.6 73.3 4.4 22.8 -11.9
Horowhenua - Entire District House 3 6475 84 500 - 560 530 2.3 65.6 549900 -11.6 58.6 5.0 15.7 4.5
Horowhenua - Entire District House 4 1976 18 575 - 625 600 -3.2 60.0 706900 -17.4 53.3 4.4 17.1 4.4

WELLINGTON
Kapiti Coast - Waikanae/Otaki House 2 1493 36 460 - 535 500 2.0 33.3 653850 -19.8 45.7 4.0 27.2 -8.5
Kapiti Coast - Waikanae/Otaki House 3 4427 48 538 - 650 625 -2.3 50.6 828500 -12.1 56.9 3.9 11.1 -4.0
Kapiti Coast - Paraparaumu/Raumati House 2 1392 36 495 - 580 540 5.3 40.3 721800 -14.7 41.7 3.9 23.3 -1.0
Kapiti Coast - Paraparaumu/Raumati House 3 5162 48 600 - 676 628 1.3 39.6 796700 -17.5 37.7 4.1 22.8 1.3
Kapiti Coast - Paraparaumu/Raumati House 4 2643 30 724 - 808 778 11.5 43.5 965900 -12.7 37.3 4.2 27.6 4.6
Porirua - Paremata/Mana/Pukerua
House 3 1399 12 655 - 750 700 1.0 29.6 916400 -5.5 40.5 4.0 6.9 -7.8
Bay
Porirua - Papakowhai/Whitby/
House 3 2316 21 660 - 750 700 -3.4 28.4 818900 -19.1 27.6 4.4 19.3 0.7
Pauatahanui
Porirua - Papakowhai/Whitby/
House 4 2749 24 750 - 883 830 3.8 27.7 1012600 -12.3 33.0 4.3 18.4 -4.0
Pauatahanui
Porirua - Titahi Bay/Onepoto/Elsdon House 3 1991 24 600 - 680 650 0.0 44.4 662050 -17.5 38.7 5.1 21.3 4.1
Porirua - Porirua East/Waitangirua House 3 2414 24 545 - 610 580 0.0 50.6 570400 -17.4 55.9 5.3 21.1 -3.4
Upper Hutt - Trentham North/
Flat 2 630 12 450 - 500 490 2.1 44.1 483550 -15.8 58.4 5.3 21.2 -9.0
W
Wallaceville
Upper Hutt - Heretaunga/
House 3 1626 21 635 - 715 668 -3.9 34.9 823900 -17.1 40.8 4.2 15.9 -4.2
Silverstream
Upper Hutt - Trentham West/
Flat 2 677 12 473 - 538 508 1.6 58.8 478600 -19.1 46.7 5.5 25.6 8.2
Eldersley/Clouston Park
Upper Hutt - Trentham West/
House 3 2579 27 665 - 720 680 -0.7 41.1 707850 -14.6 41.4 5.0 16.2 -0.2
Eldersley/Clouston Park
Upper Hutt - Totara
T Park/Maoribank/
House 3 2169 12 620 - 680 650 3.2 41.3 696000 -11.8 45.8 4.9 17.0 -3.1
Te Marua
Lower Hutt - Stokes Valley House 3 1923 15 635 - 685 660 4.8 50.0 607050 -17.3 41.3 5.7 26.7 6.1
Lower Hutt - Western Hills/Haywards House 3 2399 27 600 - 710 665 -5.0 33.0 839950 -16.3 40.5 4.1 13.5 -5.4
Lower Hutt - Wainuiomata House 3 3985 36 600 - 650 620 0.3 59.0 591300 -14.3 42.9 5.5 17.1 11.2
Lower Hutt - Taita/Naenae House 3 2250 27 620 - 680 650 4.8 44.4 648350 -14.9 42.0 5.2 23.2 1.7
Lower Hutt - Epuni/Avalon House 2 490 21 560 - 598 570 -3.4 26.7 720950 -14.3 31.0 4.1 12.7 -3.3
Wellington - Johnsonville/Newlands
W Flat 2 1073 12 499 - 533 523 6.7 27.6 606350 -17.6 32.3 4.5 29.6 -3.6
Wellington - Johnsonville/Newlands
W House 2 470 48 521 - 600 550 0.0 22.2 781550 -9.9 37.6 3.7 11.0 -11.2
Wellington - Johnsonville/Newlands
W House 3 4867 111 654 - 746 700 1.4 30.8 835100 -14.0 30.5 4.4 18.0 0.3
Wellington - Johnsonville/Newlands
W House 4 2928 27 725 - 850 780 -8.2 23.8 1001400 -14.0 23.6 4.1 6.7 0.2
Wellington - Tawa/Grenada North
W House 3 1881 24 625 - 710 670 -1.2 39.6 789600 -15.8 35.8 4.4 17.4 2.8
Wellington - Tawa/Grenada North
W House 4 1523 15 733 - 835 785 12.5 22.7 878400 -18.5 23.4 4.6 38.0 -0.6
Wellington - Ngaio/Kaiwharawhara/
W
Flat 2 380 0 - 0 0.0 0.0 602800 -19.4 30.9 0.0 0.0 0.0
Wilton
Wellington - Ngaio/Kaiwharawhara/
W
House 3 1581 27 745 - 820
7 780 4.0 27.9 974900 -16.6 15.4 4.2 24.6 10.8
Wilton
Wellington - Wadestown/Thorndon
W Apt 1 388 54 420 - 518 460 17.9 39.4 378600 -6.8 21.6 6.3 26.6 14.6
Wellington - Wadestown/Thorndon
W Apt 2 313 27 650 - 810 700 0.0 20.7 639250 -9.4 18.1 5.7 10.3 2.2
Wellington - Wadestown/Thorndon
W House 3 588 12 694 - 950 868 2.1 22.1 1151550 -14.3 22.7 3.9 19.1 -0.5

Property Management & Body Corporate

oxygen.co.nz

NZ PROPERTY INVESTOR 75
RENTAL & SALES STATISTICS SEPTEMBER 2023
trusted data

RENT MEDIAN RENT MEDIAN VALUE YIELD

RENTAL AREA NO. OF
TYPE BEDS PROPERTIES NO. OF
BONDS QUARTILE 1 YR 5 YR 1 YR 5 YR 1 YR 5 YR
RANGE CURRENT CHANGE CHANGE CURRENT CHANGE CHANGE CURRENT CHANGE CHANGE
Wellington - Lambton Apt 1 873 42 375 - 535 470 5.6 19.0 286100 -13.5 11.4 8.5 22.1 6.8
Wellington - Lambton Apt 2 850 30 595 - 755 640 4.4 16.4 531000 -15.0 17.3 6.3 22.8 -0.8
Wellington - Te Aro Apt 1 1212 150 400 - 550 470 -2.1 19.0 411200 -13.9 12.3 5.9 13.7 6.0
Wellington - Te Aro Apt 2 1936 84 589 - 743 655 5.1 23.6 638850 -14.7 12.8 5.3 23.3 9.6
Wellington - Mt Victoria/Roseneath Apt 2 395 18 580 - 695 640 1.1 16.4 0 0.0 0.0 0.0 0.0 0.0
Wellington - Mt Victoria/Roseneath House 3 411 15 814 - 1000 850 -13.7 17.2 1435600 -21.9 13.4 3.1 10.4 3.4
Wellington - Hataitai Flat 2 228 9 508 - 571 540 -2.7 28.6 647600 -12.9 34.4 4.3 11.7 -4.3
Wellington - Vogeltown/
Flat 2 380 12 530 - 595 550 1.3 22.2 571950 -16.8 25.1 5.0 21.8 -2.3
Berhampore/Newtown
Wellington - Vogeltown/
House 2 464 27 550 - 645 580 -7.2 16.0 854100 -19.4 12.4 3.5 15.2 3.2
Berhampore/Newtown
Wellington - Vogeltown/
House 3 1198 33 748 - 850 785 0.0 26.6 951600 -22.7 18.7 4.3 29.4 6.6
Berhampore/Newtown
Wellington - Island Bay/Melrose House 3 1510 24 700 - 798 750 0.0 21.0 1064150 -16.9 20.0 3.7 20.3 0.8
Wellington - Miramar/Strathmore House 2 440 15 605 - 694 650 8.3 30.0 876500 -17.2 28.6 3.9 30.9 1.1
Wellington - Miramar/Strathmore House 3 2043 33 715 - 800 760 1.3 22.6 1000600 -17.4 33.0 3.9 22.7 -7.8
Masterton - Entire District House 2 1113 33 420 - 500 460 12.2 64.3 481050 -16.6 54.5 5.0 34.6 6.3
Masterton - Entire District House 3 4725 69 503 - 554 533 2.5 56.8 518000 -21.8 53.1 5.4 31.0 2.4
Carterton/South Wairarapa -
House 2 850 21 444 - 531 468 -3.5 56.0 592550 -15.6 60.9 4.1 14.4 -3.0
Both Districts
Carterton/South Wairarapa
House 3 3598 54 500 - 596 565 2.7 61.4 727850 -8.2 72.0 4.0 11.9 -6.1
- Both Districts

NELSON / TASMAN
Tasman - Richmond/Wakefield/
House 3 3786 72 570 - 628 597 2.9 32.7 750900 -13.5 25.5 4.1 19.0 5.7
Brightwater/Mapua
Tasman - Richmond/Wakefield/
House 4 2134 33 650 - 695 670 3.1 35.4 1032900 -0.7 31.5 3.4 3.8 2.9
Brightwater/Mapua
Tasman - Motueka/Rural Tasman House 2 1094 15 373 - 465 400 -2.4 21.2 644050 -7.7 44.1 3.2 5.7 -15.9
Tasman - Motueka/Rural Tasman House 3 3889 39 458 - 550 533 6.6 40.3 699500 -7.9 38.3 4.0 15.7 1.4
Nelson - Stoke/Nayland/Tahunanui Flat 2 714 12 440 - 478 460 13.6 31.4 454650 -10.4 31.9 5.3 26.8 -0.3
Nelson - Stoke/Nayland/Tahunanui House 2 1035 33 480 - 525 495 3.1 37.5 624700 -8.8 39.4 4.1 13.0 -1.3
Nelson - Stoke/Nayland/Tahunanui House 3 3962 45 530 - 600 570 3.6 32.6 729050 -7.1 37.7 4.1 11.5 -3.8
Nelson - Port Hills/Tahuna Hills House 3 1316 21 550 - 600 560 1.8 28.7 780850 -14.1 23.5 3.7 18.5 4.3
Nelson - Nelson Central/Nelson North Flat 2 607 12 424 - 465 455 12.3 33.8 485350 -13.5 40.2 4.9 29.9 -4.6
Nelson - Nelson Central/Nelson North House 2 1094 48 450 - 545 495 7.6 30.3 652700 -7.7 32.6 3.9 16.6 -1.8
Nelson - Nelson Central/Nelson North House 3 3430 57 530 - 640 580 1.8 30.3 756800 -10.5 36.2 4.0 13.7 -4.3
Nelson - Nelson Central/Nelson North House 4 1403 9 650 - 700 685 -0.7 31.7 1045050 -3.3 33.3 3.4 2.7 -1.2
Marlborough - Sounds/Rural
House 3 2712 18 491 - 578 510 5.2 41.7 703750 -10.4 45.0 3.8 17.3 -2.3
Marlborough
Marlborough - Blenheim Central Flat 2 855 12 398 - 440 400 -2.4 65.3 434200 -10.4 48.3 4.8 8.9 11.5
Marlborough - Blenheim Central House 2 657 33 430 - 490 450 4.7 50.0 520100 -6.2 46.2 4.5 11.6 2.6
Marlborough - Blenheim Central House 3 3187 36 535 - 600 570 11.8 46.2 589350 -4.0 45.7 5.0 16.5 0.3
Marlborough - Blenheim Outer/
House 3 2729 45 500 - 614 570 14.0 42.5 670200 -5.8 39.4 4.4 21.1 2.2
Renwick
Kaikoura/Hurunui - Both Districts House 3 2700 27 400 - 550 480 26.3 43.3 616300 2.4 53.6 4.0 23.3 -6.7
Buller - Entire District House 3 2109 18 378 - 440 395 5.9 64.6 328250 0.3 82.9 6.3 5.6 -10.0
Grey - Entire District House 3 2592 12 353 - 435 395 3.9 41.1 355750 -0.0 65.8 5.8 4.0 -14.9

WEST COAST
Westland - Entire District House 3 1394 6 455 - 560 550 54.9 77.4 419400 2.8 67.8 6.8 50.7 5.8

CANTERBURY
Waimakariri - Rangiora/Kaiapoi Flat 2 794 6 355 - 416 373 -1.8 5.1 455900 -2.9 44.0 4.3 1.1 -27.0
Waimakariri - Rangiora/Kaiapoi House 3 4313 21 500 - 550 513 6.9 31.5 628900 -3.1 52.1 4.2 10.3 -13.5
Waimakariri - Rural Waimakariri House 3 3776 45 520 - 600 550 3.8 34.1 705000 -1.0 58.2 4.1 4.8 -15.2
Christchurch - Redcliffs/Sumner House 3 2210 27 598 - 775 650 0.0 51.2 990900 -7.2 25.2 3.4 7.7 20.7
Christchurch - Woolston/Opawa Flat 2 915 0 - 0 0.0 0.0 416650 -9.9 48.2 0.0 0.0 0.0
Christchurch - Woolston/Opawa House 2 780 33 440 - 500 485 10.2 47.0 504900 -9.2 55.4 5.0 21.4 -5.4
Christchurch - Woolston/Opawa House 3 2983 36 480 - 566 545 9.0 39.7 577900 -3.1 50.3 4.9 12.5 -7.0
Christchurch - Woolston/Opawa House 4 897 0 - 0 0.0 0.0 779450 -1.9 45.5 0.0 0.0 0.0

76 NZ PROPERTY INVESTOR
RENTAL & SALES STATISTICS SEPTEMBER 2023
trusted data

RENT MEDIAN RENT MEDIAN VALUE YIELD

RENTAL AREA NO. OF
TYPE BEDS PROPERTIES NO. OF
BONDS QUARTILE 1 YR 5 YR 1 YR 5 YR 1 YR 5 YR
RANGE CURRENT CHANGE CHANGE CURRENT CHANGE CHANGE CURRENT CHANGE CHANGE
Christchurch - Aranui/Bromley/
House 3 3361 24 468 - 565 510 14.6 36.0 505450 -0.3 55.1 5.2 14.9 -12.3
Bexley
Christchurch - North Beach/New
House 2 1045 18 413 - 484 455 8.3 37.9 510500 -7.1 53.9 4.6 16.6 -10.4
Brighton/Southshore
Christchurch - North Beach/New
House 3 2935 27 500 - 604 550 11.1 39.2 575450 -7.0 49.6 5.0 19.5 -6.9
Brighton/Southshore
Christchurch - North Beach/New
House 4 727 9 630 - 750 680 13.3 56.3 761700 3.6 57.8 4.6 9.4 -0.9
Brighton/Southshore
Christchurch - Styx/Parklands House 3 2260 24 520 - 590 550 5.8 41.0 647950 -1.7 47.1 4.4 7.6 -4.1
Christchurch - Styx/Parklands House 4 1770 15 650 - 745 700 7.7 41.4 885250 1.2 42.4 4.1 6.4 -0.7
Christchurch - Marshland/Redwood House 3 2672 24 528 - 584 555 6.7 32.1 649200 -10.3 38.3 4.4 19.0 -4.5
Christchurch - Marshland/Redwood House 4 2353 15 640 - 750 670 19.6 34.8 864800 -5.1 38.5 4.0 26.1 -2.7
Christchurch - Linwood/Phillipstown Flat 2 1393 30 355 - 420 400 14.3 33.8 397900 -0.2 40.2 5.2 14.5 -4.6
Christchurch - Linwood/Phillipstown House 2 369 81 420 - 500 465 14.8 32.9 491750 -3.1 60.6 4.9 18.4 -17.3
Christchurch - Linwood/Phillipstown House 3 1210 33 500 - 560 523 11.3 31.7 528650 -0.5 53.2 5.1 11.8 -14.0
Christchurch - Sydenham/Waltham Flat 2 1062 15 375 - 470 400 14.3 25.0 440950 -5.6 56.1 4.7 21.0 -19.9
Christchurch - Sydenham/Waltham House 2 331 54 450 - 520 490 11.4 36.1 545250 -4.3 48.3 4.7 16.3 -8.2
Christchurch - Sydenham/Waltham House 3 745 45 500 - 595 550 3.8 37.8 607750 -3.0 42.4 4.7 6.9 -3.2
Christchurch - St Martins/
House 3 1563 18 580 - 670 600 13.2 33.3 804000 -11.8 42.5 3.9 28.3 -6.4
Beckenham/Huntsbury
Christchurch - Westmorland/
House 3 1651 18 560 - 650 610 7.0 45.2 1049150 13.4 70.3 3.0 -5.6 -14.7
Cashmere/Barrington
Christchurch - Westmorland/
House 4 1717 12 619 - 963 925 30.3 77.9 1169800 -1.3 37.5 4.1 32.0 29.4
Cashmere/Barrington
Christchurch - Spreydon/Somerfield House 3 2514 42 530 - 600 555 4.7 37.0 656850 -7.5 43.6 4.4 13.3 -4.6
Christchurch - Spreydon/Somerfield House 4 517 12 570 - 690 675 27.4 43.6 836450 0.9 53.4 4.2 26.2 -6.4
Christchurch - Hillmorton/Hoon Hay House 3 2370 27 528 - 600 580 7.4 46.1 619650 -6.0 44.2 4.9 14.3 1.3
Christchurch - Richmond/Shirley House 3 2103 30 505 - 588 550 15.8 39.2 600150 -5.5 46.9 4.8 22.5 -5.2
Christchurch - Merivale/St Albans
Flat 2 928 9 383 - 448 430 0.5 28.4 568100 -10.4 26.4 3.9 12.1 1.5
West
Christchurch - St Albans North/
House 3 1483 18 550 - 668 605 10.0 34.4 829050 -2.6 69.2 3.8 13.0 -20.5
Mairehau
Christchurch - Fendalton/Strowan/
House 3 1506 18 570 - 670 610 2.5 29.8 1234700 0.7 43.0 2.6 1.8 -9.2
Bryndwr
Christchurch - Fendalton/Strowan/
House 4 1906 18 790 - 995 890 11.3 79.1 1587500 -8.5 52.5 2.9 21.6 17.4
Bryndwr
Christchurch - Riccarton Flat 2 1185 12 400 - 495 450 9.8 28.6 492100 -3.2 45.5 4.8 13.4 -11.6
Christchurch - Riccarton House 2 287 39 436 - 500 470 9.3 30.6 631350 -4.7 42.8 3.9 14.7 -8.5
Christchurch - Riccarton House 3 884 45 520 - 636 568 9.2 42.0 764000 -4.1 37.1 3.9 13.9 3.6
Christchurch - Sockburn/Upper
House 3 1237 9 505 - 600 570 14.0 38.3 634300 -8.1 37.0 4.7 24.1 1.0
Riccarton
Christchurch - Halswell/Wigram House 3 4574 81 570 - 650 620 10.7 31.9 737700 -2.7 41.1 4.4 13.8 -6.5
Christchurch - Halswell/Wigram House 4 4279 48 650 - 750 700 7.7 26.1 880450 -9.9 25.9 4.1 19.6 0.2
Christchurch - Hornby/Islington/
House 3 3382 27 505 - 574 550 10.0 35.1 579400 -6.9 37.5 4.9 18.2 -1.8
Hei Hei
Christchurch - Ilam/Westburn House 3 817 9 570 - 590 580 16.0 31.8 738700 -10.5 30.8 4.1 29.6 0.8
Christchurch - Avonhead/Yaldhurst House 3 2451 33 580 - 619 600 11.1 42.2 701200 -6.1 39.3 4.4 18.3 2.1
Christchurch - Avonhead/Yaldhurst House 4 1674 12 640 - 725 680 7.1 37.4 836700 -11.4 33.6 4.2 20.9 2.8
Christchurch - Burnside/Harewood House 3 1930 30 525 - 620 580 6.4 38.1 700300 -6.3 43.4 4.3 13.6 -3.7
Christchurch - Burnside/Harewood House 4 1116 9 600 - 713 653 10.7 30.6 908300 -8.6 35.7 3.7 21.0 -3.8
Christchurch - Bishopdale/Papanui House 2 541 27 450 - 530 495 5.3 30.3 666000 -10.1 56.0 3.9 17.2 -16.5
Christchurch - Bishopdale/Papanui House 3 2670 42 520 - 623 563 2.4 31.9 701950 -6.6 36.0 4.2 9.6 -3.0
Christchurch - Sawyers Arms/
House 3 4455 57 550 - 595 575 9.5 38.6 656250 -5.8 45.3 4.6 16.2 -4.7
Northcote/Belfast
Christchurch - Sawyers Arms/
House 4 2369 18 596 - 758 660 3.9 21.1 908850 -6.1 34.6 3.8 10.7 -10.1
Northcote/Belfast
Banks Peninsula/Selwyn
House 2 1854 33 393 - 495 440 4.8 25.7 635800 1.7 59.3 3.6 3.0 -21.1
- Both Districts
Banks Peninsula/Selwyn
House 3 8228 69 450 - 583 550 6.8 27.9 714000 -7.3 32.4 4.0 15.2 -3.4
- Both Districts
Banks Peninsula/Selwyn
House 4 8468 63 600 - 693 638 4.6 32.9 883150 -6.4 40.9 3.8 11.8 -5.6
- Both Districts
Ashburton - Entire District Flat 2 773 6 345 - 380 360 9.1 28.6 372250 0.5 51.3 5.0 8.5 -15.0

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NZ PROPERTY INVESTOR 77
RENTAL & SALES STATISTICS SEPTEMBER 2023
trusted data

RENT MEDIAN RENT MEDIAN VALUE YIELD

RENTAL AREA NO. OF
TYPE BEDS PROPERTIES NO. OF
BONDS QUARTILE 1 YR 5 YR 1 YR 5 YR 1 YR 5 YR
RANGE CURRENT CHANGE CHANGE CURRENT CHANGE CHANGE CURRENT CHANGE CHANGE
Ashburton - Entire District House 2 839 27 363 - 425 390 8.3 30.0 430850 2.9 56.2 4.7 5.3 -16.8
Ashburton - Entire District House 3 5069 81 426 - 500 458 9.0 30.9 510150 1.3 47.3 4.7 7.6 -11.2
Ashburton - Entire District House 4 1884 18 468 - 600 550 12.2 44.7 684600 0.1 37.7 4.2 12.1 5.1
Timaru - Timaru Township Flat 2 1113 12 300 - 350 350 0.0 40.0 378650 0.1 35.5 4.8 -0.1 3.3
Timaru - Timaru Township House 2 1369 30 376 - 439 400 5.3 33.3 426550 -4.8 38.5 4.9 10.6 -3.7
Timaru - Timaru Township House 3 5612 69 423 - 489 450 4.7 32.4 521350 1.2 39.0 4.5 3.4 -4.8
Timaru - Rural Timaru/Temuka/
House 3 2518 12 445 - 500 490 19.5 48.5 484100 -2.1 49.0 5.3 22.0 -0.3
Geraldine
MacKenzie/Waimate - Both Districts House 3 2350 39 400 - 465 450 18.4 73.1 553100 6.5 44.9 4.2 11.2 19.5
Waitaki - Entire District
W House 2 1341 18 340 - 395 360 -6.5 30.0 400650 -9.8 61.6 4.7 3.7 -19.6
Waitaki - Entire District
W House 3 4462 36 400 - 450 420 5.0 40.0 476450 -1.6 63.6 4.6 6.7 -14.4

OTAGO
Central Otago - Entire District House 2 1004 24 450 - 499 480 6.7 50.0 663100 9.3 71.4 3.8 -2.4 -12.5
Central Otago - Entire District House 3 4399 57 513 - 628 568 11.4 38.5 777400 3.5 48.6 3.8 7.6 -6.8
Queenstown Lakes - Wanaka House 3 2811 72 650 - 800 720 10.8 23.1 1474900 3.0 64.8 2.5 7.5 -25.3
Queenstown Lakes - Wanaka House 4 2152 45 800 - 1000 905 13.1 33.1 1884000 -2.1 63.5 2.5 15.6 -18.6
Queenstown Lakes - Queenstown/
House 3 3035 75 750 - 900 850 16.8 13.3 1883550 2.2 47.5 2.3 14.3 -23.2
Frankton/Arrowtown
Queenstown Lakes - Queenstown/
House 4 2386 36 863 - 1178 983 15.6 15.6 2259050 9.9 52.4 2.3 5.2 -24.1
Frankton/Arrowtown
Dunedin - Musselburgh/Vauxhall/
House 3 2736 27 553 - 628 580 5.5 52.6 627600 -9.0 45.5 4.8 15.9 4.9
Peninsula
Dunedin - Kew/St Clair/St Kilda East House 3 1988 24 475 - 631 525 2.9 31.3 603800 -1.5 62.9 4.5 4.5 -19.4
Dunedin - North East Valley/Pine Hill House 3 1190 9 450 - 525 500 2.0 38.9 501900 -7.5 54.4 5.2 10.3 -10.0
Dunedin - Glenleith/Roslyn/
House 3 2627 39 520 - 590 550 0.0 27.9 620650 -7.9 46.0 4.6 8.5 -12.4
Belleknowles
Dunedin - Kenmure/Mornington House 3 1996 27 520 - 580 555 -2.6 42.3 541100 -8.8 54.1 5.3 6.8 -7.7
Dunedin - Sunnyvale/Abbotsford/
House 3 2645 18 510 - 600 570 9.0 58.3 572700 -9.9 49.9 5.2 21.0 5.6
Burnside
Dunedin - Mosgiel House 3 2751 24 535 - 620 570 7.5 46.2 671600 -8.9 49.1 4.4 18.0 -2.0

SOUTHLAND
Clutha/Southland - Both Districts House 2 2071 27 273 - 376 350 9.4 40.0 391200 -5.9 61.4 4.7 16.3 -13.3
Clutha/Southland
/ - Both Districts House 3 7364 66 388 - 460 440 18.9 61.8 476150 -1.0 96.3 4.8 20.1 -17.6
Clutha/Southland
/ - Both Districts House 4 2140 15 325 - 458 393 -1.8 31.0 596500 -2.2 68.8 3.4 0.5 -22.4
Gore - Entire District House 3 2535 27 400 - 500 455 23.0 75.0 385250 2.1 84.5 6.1 20.4 -5.1
Invercargill - Central Invercargill/Bluff Flat 2 658 15 300 - 395 320 0.0 48.8 308450 -11.2 70.6 5.4 12.6 -12.7
Invercargill - Central Invercargill/Bluff House 3 2645 33 405 - 499 450 0.0 69.8 396400 -6.3 55.9 5.9 6.7 8.9
Invercargill - Suburbs Flat 2 1116 12 345 - 383 350 1.4 40.0 365100 -5.8 66.8 5.0 7.7 -16.0
Invercargill - Suburbs House 2 1004 36 360 - 420 400 8.1 50.9 421600 -5.4 64.3 4.9 14.3 -8.1
Invercargill - Suburbs House 3 9193 126 440 - 490 470 6.8 64.9 455400 -6.6 68.9 5.4 14.3 -2.3
Invercargill - Suburbs House 4 2468 15 485 - 575 518 3.6 61.9 609150 -6.3 56.3 4.4 10.5 3.6

WHO IS CORELOGIC? CoreLogic is a leading property information, analytics and services provider in the United States,
Australia and New Zealand. Bringing together leading property intelligence and geospatial companies, PropertyIQ and Terralink
International, CoreLogic NZ helps clients identify and manage growth opportunities, improve performance and mitigate risk.
CoreLogic NZ provides clients with innovative, technology-based services as well as access to rich data and analytics.

The data is for the month ending June 30, 2023

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78 NZ PROPERTY INVESTOR
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NZ PROPERTY INVESTOR 79
FINAL WORD

DEFINING MARKET
RENT: HOW MUCH
IS TOO MUCH?
Landlords can find themselves in a
difficult position, leading to significant rent
increases, but there is help and guidance
out there, writes David Faulkner.

et again, housing will be tenant looking after their investment. This tenant advocate group demands that rent

Y a significant topic in the

forthcoming election. As the
current cost of living is at the
forefront of most people’s minds, there is
no doubt most of the electorate will be
seems logical until the investor realises
that the rent they receive will fall well
short of the pending cost increase as they
come off low-interest rates.
increases are limited to the consumers
price index (CPI) so tenants are not
exposed to such significant increases.
This is like many commercial leases that
have rent review clauses based on CPI.
financially worse off. BIG SHORTFALLS However, the capitalist in me feels
From an investor’s point of view, We have seen landlords increase rents the market would correct itself if we had
many will be coming off low-interest by more than 20 per cent to minimise enough housing stock. Unfortunately, we
rates and will see their mortgage the shortfall they will experience. This do not.
payments increase significantly. Add the can be unfair to tenants. You could argue
removal of interest deductibility into the that the tenants have had it good for a VALUATION MODEL
mix and landlords will find their expenses long time, paying under-market rent At Property Brokers we have worked
have skyrocketed, and now there is and that an increase in excess of 20 per closely with Valocity Global and MRI
limited tax relief to alleviate the pain. cent highlights how much they have Palace, who have helped us create a live
This is not good news for renters. saved previously. real-time Rental Automated Valuation
Numerous landlords find themselves in However, I would argue tenants will Model. This tracks rent payments for over
precarious situations, leading to significant have a budget and plan their expenses 100,000 properties and, based on this live
rent increases for many tenants. around this. They will not be expecting data, provides a real-time analysis of what
It has been well-documented that such a big increase, which will add is happening with rents.
house prices have come back from their significant emotional and financial stress. The issue with Tenancy Services data is
peak. REINZ reported in June that the It isn’t fair for the stated reasons, but that it is only based on bonds lodged and
median house price is down -8.2 per cent what about the legality of such increases? needs to track changes in rent. Valocity
from June 2022. House prices may have Section 25 of the Residential Tenancies Global has overcome this issue. Therefore,
come back, but what’s happened with Act defines what market rent is. Property Brokers’ landlords can instantly
rents? Trade Me Rental Price Index has This section states that landlords see how their property performs
reported rents have risen 8.8 per cent cannot increase rents substantially above compared to the market. It provides the
in June 2023 compared with last year. market rent. Therefore, there is no limit most accurate assessment of market rent
House prices have come back, but rents to what a landlord can ask a tenant to in New Zealand.
continue to rise. pay if it is not considerably above what My advice to landlords is annual small
A common mistake we see investors the market will accept. The next question increases in line with CPI, so tenants have
make is failing to understand and keep is, what is a substantial amount? Is it 5 certainty about what they will be paying.
abreast of what is happening with rents. per cent or 10 per cent over market rent? Or give us your property to manage, and
Many investors are reluctant to increase In such cases, I sympathise with we will ensure we keep you up to date
their rents if they have found a good organisations like Renters United. The with any changes in the market. Q

David Faulkner is the General Manager of Property Management for Property Brokers and is recognised as
one of the leading experts in the New Zealand Property Management industry. He has been involved in the
industry developing robust policies and procedures, training, and consultation services for many years.

80 NZ PROPERTY INVESTOR
 Property Management
Guarantees
Property tenanted,

1 or we'll pay
If we have not signed up a tenant for your
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3 or we’ll pay
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If you are not happy and we cannot resolve the
problem, we’ll pay your management fee.*

We stand by our service guarantee, with no rent arrears,

guaranteed tenancy, and great service every time, or we’ll pay.
If you would like to maximise the return on your investment,
spend more time doing the things you love and less time worrying
about tenant issues, visit pb.co.nz/pm Property Management

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