Why Invest in Dunedin Property?
Strong Market Performance & High Demand
Dunedin’s property market has maintained steady growth over the years, driven by reliable tenant demand. As the 6th largest city in New Zealand and the 2nd largest in the South Island, Dunedin benefits from both a thriving student population and a stable residential market. Around 30% of Dunedin’s housing stock consists of rental properties, ensuring there is consistent demand for well-maintained homes.
With over 700 properties on the market as of October 2024, now is a great time to enter or expand your investment portfolio. Dunedin continues to be one of the most affordable major cities in New Zealand, making it attractive to both new and seasoned investors.
Competitive Rental Yields
Dunedin offers solid rental returns, with most investors currently looking to acheive 6-7% when investing in residential properties, while properties aimed at the student market tend to gross yield 8% or higher, although this often comes with slightly higher maintenance costs. These favorable yields, combined with lower property prices compared to other major cities, make Dunedin an appealing choice for investors.
Ideal Rental Properties and Key Areas
In our opinion the most sought-after rentals in Dunedin are three-bedroom homes with modern heating, off-street parking, and ideally garaging or double glazing. These features help attract quality tenants and reduce vacancy periods.
In terms of rent, properties in the $500 to $600 per week range are in high demand. Family-friendly suburbs and areas on the hills—with access to good schools and public transport—tend to be especially popular among renters, along with locations close to the beach.
Dunedin: A Top Performer
A recent Opes Partners report ranked Otago as having the second-highest median gross yield in New Zealand. When compared with other large cities across the country, Dunedin is performing well, with recent data showing an uptick in investor interest—particularly from out-of-town buyers in the latter part of 2024.
Ready to Invest? Contact Us Today
Navigating the property market can be complex, but you don’t have to do it alone. Whether you’re starting your investment journey or expanding your portfolio, Bex Harris at Propertyscouts Dunedin is here to help. With local expertise and a wealth of industry knowledge, we can find the right investment property to match your financial goals.
Call Bex Harris on 027 258 0885 for independent investment advice and let us help you make the most of Dunedin’s property market.
All information provided is either based on information gathered, or opinion. This inforamtion is not considered legal advice and parties should source information from appropriate parties.