Propertyscouts Dunedin

Auckland investors like better returns in South - 11th Sep 2015

Auckland investors like better returns in South We've been talking about it for a while and it looks like it's starting to happen - Auckland investors are pushing up house prices in Dunedin.

House sales around Otago and the Central Otago/Lakes regions have spiked in August, up respectively 52% and 17% on a year ago, possibly thanks to outside investor interest.

Anecdotally, Auckland investors are said to be taking a keener interest in Dunedin properties, cashing up on the high prices and buying Dunedin houses, for their higher rental yield.

The number of Dunedin homes sold in August rose 53%, from 125 a year ago to 192, with the median price up 7% to $300,000, while across Otago house sales rose 52% to 257 and prices gained 7.7% to $272,500, Real Estate Institute of New Zealand data released yesterday revealed.

The separate Central Otago/Lakes region booked similar gains, with properties sold up by 17.4% to 108 and the median price gaining 8.7%, to $426,500.

However, Queenstown data was relatively flat, with house sales up from 39 last year to 40, while median prices rose from $550,000 to $553,250.

REINZ chief executive Colleen Milne said activity across New Zealand continued to be very strong through August, with winter no deterrent to sales being concluded.

''The presence of Auckland buyers in other regions is also becoming more noticeable, with a surge in Auckland investors buying in Dunedin and continued strong demand for properties in the Waikato and Bay of Plenty from Auckland buyers,'' she said in a statement.

There is no specific REINZ data kept on investor sales and purchases.

One southern industry source heard said Aucklanders were selling one investment property in order to but ''two or three'' in regions elsewhere, while another understood Auckland rental yields were about 4%, while in Dunedin they ranged from 6%-8%.

Around the country, the volume of house sales is up 41% on a year ago while the national median price gained 10.7%, or $45,000, to hit $465,000.

There has been a 130% rise in the number of homes sold above $1million during the past year - up from 368 to 848.

Simon Hartley - Otago Daily Times

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