Quarter 4 2018
As 2018 draws to a close, we can reflect on a year that had months of strong head winds, fantastic tail winds and swirling gusts battering both sides of your investment portfolio. But overall, the market is in healthy condition and there are strong prospects looking into 2019.
The confidence levels in Dunedin are brilliant. Developers are developing, businesses are investing and the promise of the hallowed new hospital is underpinning positive perceptions. We have had many investors looking at Dunedin for the first time as they move away from the giddy prices of Auckland and Queenstown and see Dunedin as the next
This is backed up in the statistics. REINZ’s median price for all of Dunedin housing in November was $435,500, up 14.3% on a year ago, while the New Zealand (excluding Auckland) median was $575,000 up 7.8%. Dunedin is on the charge.
The investment sector is slightly more subdued, by not in a negative way. Investment property is typically more stable than the suburban counterparts that have their fluctuating years. Broadly speaking, the past year has seen rents increase substantially when compared to prior years and yields at sale have been squeezed down, meaning good increases in property value. The forecast of additional students and workers in the coming years is promising of this continuing pressure on rents.