The New Zealand Investment Property market is not as strong as it's Australian neighbour. The main reasons for this are the lack of significant population growth in most regions needed to create strong on-going demand and the lack of a scarcity of land in many regions.
Many Investors therefore have turned their focus to rental yields rather than Capital Growth out of necessity. However, as the majority of our clients are seeking good consistent Capital Growth over a number of years in order to create a significant Asset Base for their retirement, we have examined the market from a growth perspective and have decided the main market that we feel confident in for the medium term is the Auckland market.
Some of the other more "trendy" options such as some of our favourite North & South Island holiday spots have recorded significant results at times in the past, but don't have the key fundamentals in place to offer confidence in long-term sustained growth.
The Auckland Region is the stand-out option in New Zealand for the medium term Investor, being one of the very few places to be experiencing significant on-going population growth combined with a scarcity of well-located land. It also has a high percentage of the population renting, which, along with the need to reside as close as possible to the major City Centres, creates a strong rental demand.
Right now however, after the significant rises Auckland and other parts of NZ have experienced, it is perhaps a time to seek out more unique 'Niche Markets' where good growth rather than a possible correction is still highly likely