Issuu

APRIL\MAY 2025

DEVELOPMENT CONTRIBUTIONS Building costs in Auckland may be set to skyrocket

TRIBUNAL ON TRIAL Is it time for the Tenancy Tribunal to undergo a radical reset?

$12.50 INCL GST

FINAL COUNTDOWN

Healthy homes compliance deadline looms

ADDED VALUE

A property investor who understands the power of valuation

INVESTOR KEYNOTE

TUESDAY 8 APRIL

PARNELL, AUCKLAND

THE AUCKLAND PROPERTY INVESTORS ASSOCIATION CORDIALLY INVITES YOU TO

FORESIGHT is20/20 MY MISTAKES, YOUR ADVANTAGE A CANDID INVESTMENT RETROSPECTIVE WITH MAREE TASSELL

CONTENTS April/May 2025 UP FRONT

4 6 8 12 15 16 18 22

FROM THE EDITOR MEET SOME OF OUR CONTRIBUTORS

NEWS MARKET UPDATE YOUR RATES INVESTOR DATA EXPERT ADVICE POLITICAL UPDATE

FEATURES

PROFILE Eve Prouse understands the power of valuation for investment properties.

28 TENANCY TRIALS

Calls for an overhaul to the Tenancy Tribunal gathers pace.

34 DEVELOPMENT CONTRIBUTIONS Auckland developers 40

are set to get a massive increase in what they pay council in Auckland.

R EGIONAL REVIEW Investing in West Auckland.

Contents

46 RENOVATION

46 DIY PROJECT Alice and Caleb Pearson tackle living spaces. 50 RENOVATION The healthy homes deadline is looming – are you prepared?

REGULAR FEATURES

I NSIDER’S GUIDE Nick Gentle on the potentials of property right now.

58 PROPERTY COUNCIL Leonie Freeman discusses rent-to-build. 60 STRATEGIC PLANNING Simon O’Connor’s Watercare update. 62 YOUR VALUER Valuation can help investors

add value to their properties.

64 YOUR ACCOUNTANT Tax implications of non-physical land changes. 66 YOUR LAWYER Build-to-rent sector’s legislative changes. 68 COMMERCIAL PROPERTY 70 PROPERTY 101 Who is best to manage your property? 72 YOUR PROPERTY MANAGER Tenancy Tribunal should be the last option for investors.

74 SARINA’S VIEW Dealing with family violence. 76 YOUR REVIEW Kathy Faulkner meets an 78 80 82

investor who started small and is now financially free.

NZPIF SPOTLIGHT NZPIF AROUND THE REGIONS RENTAL AND SALES STATISTICS FINAL WORD David Faulkner on the return to fixed-term rentals.

The search for your next investment starts here

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From The Editor

The Tenancy Tribunal is under the spotlight in this autumnal issue of New Zealand Property Investor.

anaging tenancies can be a joy – and a challenge. There are very few property managers, or self-managing landlords, who haven’t experienced both the ups and downs of tenancy management – helping families into secure accommodation or chasing up rent that’s months overdue. Tenancy Tribunal is often a last resort for landlords (or tenants) righting the wrongs of tricky tenancies. But while it can be effective, it’s not without its problems. The vast majority of cases brought before the tribunal relate to rent arrears – a problem that should be relatively easy to resolve. But these cases clog up the system and result in significant delays. As Matt Ball from New Zealand Property Investor Federation (NZPIF) explains, this is an issue both tenants and landlords should have an interest in, because the tribunal is being clogged up with what essentially are minor cases. “Many rent arrears cases do not require the nuanced adjudication that other tenancy disputes might,” he says. NZPIF have put forward a proposal around reforms they believe will help to streamline the processes at Tenancy Tribunal. This includes creating a separate division for rent arrears cases, whereby landlords would submit applications with supporting evidence of arrears, which would be reviewed on the papers, rather than requiring a courtroom hearing. The process could operate online, allowing adjudicators to work remotely, reducing costs, and accelerating decisions. This proposal has been put to all political parties and the issue has been pushed from the justice minister, to the courts minister, to the housing minister. Ball says that housing minister Chris Bishop is receptive, which is a positive sign. We had an amazing response to our story around water constraints and stormwater contributions last month. Matthew Gilligan has been a huge advocate for developers who are wrestling with such issues and he’s written the second lead story this month. The story relates to proposed huge price increases to the development contributions Auckland developers pay council . Some of the proposed increases measure in the hundreds of thousands – while council says this will not affect the price of new housing, Gilligan (and many others) has a different opinion. It’s an unsettling story; we are watching developments closely. Our profile this month, Eve Prouse, is a young valuer who is passionate about property. She has her own small portfolio and works with investors and home owners to understand the unrealised potential of their properties. She story is fascinating and there are many moments of synchronicity in which fate seemed to guide her way. We hope you enjoy reading the second New Zealand Property Investor magazine under our ownership – it’s been a wonderful (if insanely hectic) four months and we are loving all your feedback. See you in two months, Joanna Mathers

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Joanna Mathers E joanna@informedmedia.co.nz M 021 250 7101

WRITER

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Webstar, New Zealand NZ Property Investor has been printed on accredited and fully recyclable paper sourced from sustainably managed and legally harvested forests. NZ Property Investor sources expert advice on a range of specialist topics. We recommend you get your own independent advice before you take any action, and any action you take is strictly at your own risk. Opinions expressed by contributors are not necessarily those of NZ Property investor or Informed Media Ltd. Informed Media is not liable for any loss or damage (included but not limited to indirect or consequential loss) or for personal injury arising from any action taken. © 2025 • Informed Media Limited Issue 255 NZ Property Investor is published by Informed Media Limited. The contents are copyright and may not be reproduced without the consent of the Editor. All rights reserved.

4 NZ PROPERTY INVESTOR

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Contributors

MEET some of our contributors

Mark Withers

Shadi Salehpour

Matt Ball

Debbie Roberts

Sarina Gibbon

Simon O’Connor

Mark Withers and his team specialise in advising on propertyrelated transactions, valuation and restructure services, and tax planning.

Debbie Roberts is a financial adviser with 25-plus years’ property investment experience. She co-founded Property Apprentice in 2010 with her husband Paul to help others achieve financial freedom through property investment.

6 NZ PROPERTY INVESTOR

Shadi is the owner of Let’s Rent, an award-winning property management company in Auckland known for its personalised approach and commitment to excellence. With a passion for fostering strong relationships between landlords and tenants, Shadi has built a reputation for integrity, innovation, and professionalism in the industry.

Sarina is an independent tenancy consultant, industry advocate and established media commentator. Her clients include the Auckland Property Investors Association, Renti and several property management organisations.

Matt Ball is PR and advocacy manager for the New Zealand Property Investors Federation. Matt has decades of experience in PR and politics, is a property investor and has been a renter. These experiences help him represent and advocate for property investors and push for policy changes that benefit the whole industry.

Simon is managing director of Sentinel Planning and has more than 20 years town-planning experience in the public and private sectors. He has significant Auckland-wide and international experience as a principal planner at Auckland Council and its predecessors in the policy and regulatory divisions.

Ed Smithies

Matthew Gilligan

Kris Pedersen

David Faulkner

Leonie Freeman

Rachel Radford

Ed is an experienced property and construction lawyer. He advises clients on all aspects of their property transactions including the negotiation of sale and purchase agreements, leases, development agreements and construction contracts. He also regularly assists overseas investors in managing the overseas investment approval process.

David 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.

Matthew Gilligan is a property investor, developer and tax adviser. He is managing director of chartered accounting firm Gilligan Rowe & Associates, where he heads the specialist property and asset planning divisions.

Leonie Freeman is the chief executive of Property Council New Zealand. She has extensive experience in the property industry, having held top positions in both the public and private sector. From creating the concept of what is now realestate.co.nz, to buying and transforming her own residential property management business, she is a leading light in the industry.

Kris Pedersen of Kris Pedersen Mortgages is a commentator on property and finance. His team sources top finance strategies.

Rachel Radford is the marketing lead for builderscrack.co.nz, New Zealand’s largest home improvement platform that connects homeowners with tradespeople. Her journalism background, combined with the platform’s comprehensive industry data, provides unique perspectives on nationwide property repairs and renovations. nzpropertyinvestor.co.nz 7

Up Front News

Investors back in the market Kelvin Davidson from Core Logic ponders if there will be a higher percentage market share for mortgaged investors in 2025.

he CoreLogic Buyer Classification data has recently been showing a continued upward trend for the percentage share – and raw number – of purchases going to mortgaged multiple property owners (MPOs, including investors). Indeed, after a trough of 21 per cent in Q2 last year, mortgaged investors have now climbed back to almost 24 per cent of the market – still a touch below average, but nevertheless the highest presence since the middle of 2021. What lies behind these patterns? Clearly, the easing in the LVR rules on July 1 last year (35 per cent deposit down to 30 per cent) will have played a role, alongside the shorter bright-line test from the same date. Mortgage interest deductibility has been a factor too, which went back to 80 per cent on April 1 last year and is up at 100 per cent from April this year. But in my view the biggest influence is surely lower mortgage rates themselves (and to some extent higher gross rental yields), which have reduced typical top-ups out of other income on a standard investment property purchase from perhaps $350$400 per week back down closer to $200. That remains a significant amount of money to find, but still a lot less than it used to be. Looking ahead, we anticipate overall property transactions rising from

8 NZ PROPERTY INVESTOR

QUARTERLY NZ PER CENT SHARE OF PROPERTY PURCHASES

(Q1 2025 ONLY JANUARY SO FAR)

roughly 82,000 in 2024 to 92,000 this year, as the lagged effects of lower mortgage rates show through more clearly, and potentially as the economy slowly starts to turn around as well. In this environment, mortgaged investors are likely to buy more properties in 2025 than they did in 2024, and there’s a pretty good chance their percentage share will rise a bit further too. Of course, given that market share must always equal 100 per cent, this implies another group(s) will see a decline – and after a record couple of years, it wouldn’t be completely surprising if this ‘faller’ was first home

buyers (FHBs). But to head off the scare-stories before they start, even if FHBs’ share does drop a little in 2025, they are still likely to buy more properties in a busier overall market. That said, investors will continue to face some challenges too, such as lower net migration and flatter rents, as well as difficulty in finding good tenants. The debt to income ratio (DTI) rules are lingering in the background too. DTIs won’t be a “hard stop”, due to the 20 per cent allowance to lend outside the caps and also the newbuild exemption. But they’ll at least be something to consider. ■

he government has announced it is making five key changes to its funding and financing toolkit. The new and improved infrastructure funding will include the following. 1. Replacing development contributions with a development levy system, which enables councils and other infrastructure providers to charge developers a proportionate amount of the total cost of capital expenditure necessary to service growth over the long term. Separate levies will be maintained for each infrastructure service, with levy zones expected to cover a predefined urban area. Levies will be calculated based on overall growth costs and expected levels of growth. 2. Establishing regulatory oversight of development levies to ensure charges are fair and appropriate by restricting local authority discretion about various matters, such as setting the methodology used to allocate project costs. 3. Increasing the flexibility of targeted rates by allowing councils to set targeted rates that apply only to new developments and enabling targeted rates and levies to be used together where projects benefit existing residents and provide for growth. 4. Improving the effectiveness of the Infrastructure Funding and Financing (IFF) Act, particularly for developer-led projects. This work is being led by parliamentary undersecretary Simon Court. 5. Broadening existing tools to support value capture and cost recovery by enabling the IFF Act to be used for major transport projects (such as those led by NZTA). “These are big changes, but they will be worth it,” housing minister Chris Bishop and local government minister Simon Watts say. “Shifting to development levies will give developers more certainty around costs and give councils more flexibility to recover the actual costs of growth. The changes will increase transparency and reduce administrative complexity for councils. “Most importantly, they mean that councils can properly cover the costs of housing growth,” Watts says. Detailed design work around the new system is underway in advance of legislation being introduced to

Development contributions reset A new levy system aims to get more homes built to address the country’s housing crisis, Sally Lindsay writes. parliament in the second half of 2025, enacted in mid-2026 and to begin in 2027.

Developers need certainty

Meanwhile the Property Council New Zealand believes it is a move that will pave the way for more commercial viability and the construction of muchneeded homes across the country. “With housing affordability becoming an increasingly pressing issue, this reform could go a long way in ensuring that development is not unnecessarily hindered,” Leonie Freeman, Property Council chief executive says. She says development contribution fees have a significant impact on growth, both positively and negatively. “Development contribution fees have the power to either drive or hinder growth. Recently, some councils have raised these fees by an astonishing 289 per cent, pushing the total cost to approximately $100,000 per home, ultimately adding to the final purchase price for buyers. These increases are unsustainable and limit the ability to address the growing housing shortage.” For years, the Property Council has advocated for a more consistent and transparent approach to these fees. “For too long, development

contribution fees have lacked consistency, been used to fund infrastructure unrelated to the development area, and remained entirely at the discretion of councils. This has led to unpredictable and, at times, unjustifiable costs for developers and, ultimately, homebuyers,” Freeman says. The new system promises to focus on ensuring development contributions are spent directly on infrastructure tied to the specific development areas. “We’re encouraged that the new system aims to ensure development contributions are dedicated to infrastructure spending related to the area being developed. In the past, we’ve seen fees collected in Drury used to fund projects like the Devonport Library – an approach that simply doesn’t add up. “Our members need certainty to develop. They need a system that guarantees consistent pricing and application across the country, where levies collected from a development are reinvested into the same area. A system that is transparent and well-regulated. “ The Property Council will continue to monitor the rollout of the new system, advocating for measures that prioritise long-term benefits for communities and the housing market. ■

nzpropertyinvestor.co.nz 9

housing model offering professionally managed, long-term rental options, has been on slow but steady growth since the asset was formally recognised in 2023. Research from the Property Council indicates developers could deliver 25,000 BTR homes in the next decade. Property Council and partners Bayleys, Colliers, Savills, CBRE, and JLL track BTR sector growth across the country, with 1,841 completed units, 736 under construction, and 2,961 in the pipeline across 56 developments as at December 31 last year. However, to scale effectively, developers needed access to investment that matches the long-term nature of these assets. Freeman says attracting muchneeded overseas investment will ensure BTR projects can be financed at scale. “It will unlock opportunities to deliver more secure, high-quality rental options for New Zealanders. “With supportive policy settings, our research shows that developers could deliver 25,000 build to rent homes within the next decade. That’s a significant contribution to increasing housing supply and providing renters with greater choice and stability,” Freeman says. While the passage of the Bill is a positive step, the Property Council believes further refinements could enhance the sector’s growth. Freeman is urging the government to consider introducing depreciation for BTR fitouts, clarifying GST rules around service levels and amenities, and ensuring the Residential Tenancies Act is appropriately applied to BTR tenancies. ■

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he Overseas Investment (Build to Rent and Similar Rental Developments) Amendment Bill has been described as a “game changer” for housing. It introduces a “large rental development test” to attract muchneeded overseas capital.

For years, the sector has struggled to gain momentum because of barriers to international capital and regulatory uncertainty. The decision changes that and signals New Zealand is open for build to rent (BTR) investment, Leonie Freeman, Property Council New Zealand chief executive says. BTR, a purpose-built rental

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UpUp Front Front News News

New strategies in a changing market The way people buy and sell property is evolving, with younger generations increasingly open to new approaches, including digital platforms, co-ownership, and apartment living.

espite the rise of online tools, most Kiwis still see the value of working with real estate professionals, a new LJ Hooker study reveals. The findings reveal key shifts in how buyers navigate the property market, balancing affordability challenges with innovative solutions. Key insights from the research include: • less than a quarter of older Kiwis consider selling their home without a real estate agent, though nearly half (44 per cent) of Gen Z would • face-to-face meetings remain the preferred way to communicate with agents, despite advances in technology • co-ownership is gaining traction, with 33 per cent of New Zealanders open to buying a property with a friend or sibling – and 45 per cent of Gen Z. • 31 per cent of homebuyers have parents open to providing them financial assistance, reflecting the

challenges of saving for a deposit in the current market. As standalone homes become less attainable in major cities, younger generations are rethinking their path to homeownership. Forty five per cent of Gen Z and 40 per cent of Gen Y would consider co-owning a home with a friend or sibling, compared to just 22 per cent of Baby Boomers. Forty per cent of New Zealanders are open to apartment living, with younger buyers leading this trend (48 per cent of Gen Z vs 37 per cent of Gen X). “Kiwis still see property ownership as a key path to financial security, but affordability challenges mean that more people are open to alternative options like co-ownership or apartment living,” Campbell Dunoon, LJ Hooker head of network NZ, says. He advises those considering co-ownership to take a structured approach: “If you’re buying with a friend or family member, ensure you

have a formal agreement in place outlining each party’s responsibilities and an exit strategy in case circumstances change.”

Parents continue key role

Despite the rise of KiwiSaver, many young buyers rely on financial support from family to secure a home deposit. Thirty one per cent of homebuyers have parents open to providing them financial assistance. Parental support is even more common among younger generations, as affordability challenges persist. Eighty nine per cent of parents are open to helping their children enter the property market. “Parents who have built wealth through homeownership understand its long-term benefits,” Dunoon says. “Many are eager to support their children in achieving the same goal, even though the path to home ownership has changed over the years.” ■

nzpropertyinvestor.co.nz 11

Market Update

What’s happening in the market Sally Lindsay explores the drivers influencing property in Aotearoa. Listings at a high while prices decline

Investors again making their mark on the mortgage market First-home buyers who piled into the housing market at the end of last year and bought so they didn’t have to compete with the coming surge of investors, were on the right track. The latest Reserve Bank mortgage data shows that in January investors took out their biggest share of new mortgages in nearly four years. Of the $5.1 billion taken out in new mortgages, 22.5 per cent went to investors in January. A year ago, their share stood at just 17.8 per cent. Annual growth in new mortgages taken out by them was up 90 per cent to $1.153 billion, compared to the $607 million borrowed in January last year. In comparison, first-home buyers’ share of new mortgages at 20.2 per cent, a drop from 24.1 per cent in January last year. Borrowers took out a total of $5.1 billion in mortgages during January, up by 50.3 per cent when compared to the same month last year. The amount borrowed then was $3.413 billion. Mortgage arrears reached an eight-year high last month, with 23,700 home loans past due, a 6 per cent year-on-year increase, Centrix data shows. The same trend is also obvious from RBNZ figures, which show non-performing housing loans increased by $165 million, or 7.6 per cent, the biggest monthly rise since June 2020. The central bank’s loans by asset quality figures reveal total non-performing loans were at $2.328 billion at the end of January and have increased by $650 billion, or 38.8 per cent year-on-year. ■

12 NZ PROPERTY INVESTOR

The total number of properties for sale were at a 10-year high in February on realestate.co.nz The website received 11,363 new residential listings during the month, although that was down by 3.6 per cent nationally compared to February last year. The biggest declines in new listings regionally were in the northern regions of Northland, down 23.4 per cent, Auckland, down 9 per cent and Bay of Plenty, down 12 per cent. Listings rose in several regions. They were up a whopping 79.4 per cent in Gisborne, up 24.1 per cent in Southland and up 9.9 per cent in Canterbury. The national average asking price rose slightly to $884,995 in February, from $881,571 in January, but remained down by 4.6 per cent compared to February last year. Buyers still had plenty to choose from with the total stock of residential properties for sale on realestate.co.nz remaining at a 10-year high of 35,712, which was up 13.6 per cent compared to February last year. Auckland’s biggest real estate agency, Barfoot & Thompson is carrying a huge amount of stock. It had 5,997 residential properties available for sale at the end of February, the most it has had in any month of the year since 2011, putting stock levels at a 14-year high. The agency sold 685 properties in February, down from 700 in January, but up from 633 in February last year. The median selling price also took a dip, down to $930,000 from $950,000 in January, and well down from $970,000 in February last year. It is $310,000 below its November 2021 peak. However, Barfoot & Thompson’s average selling price increased to $1,107,006 in February compared to $1,053,446 in January. ■

New building work in the doldrums The value of all consented building work has been steadily declining, Stats NZ data shows. In the 12 months to the end of January this year $26.662 billion of building work was consented, down 6.7 per cent from $28.577 billion in the January 2024 year. Over the past two years that value has dropped by $5.577 billion from $32.2 billion in the year to January 2023. In January this year alone, the total value of all consented building work, both residential and non-residential, was $1.772 billion, down 12.1 per cent compared to January last year. 33,812 new dwellings were consented in the 12 months to January 2025. That’s down from 36,453 in the 12 months to January 2024, and from 49,480 in the 12 months to January 2023. Westpac chief economist Satish Ranchhod says while it’s been a tough time for the building industry, conditions in the sector are now changing. “It looks like we are now close to a floor in the building cycle with consents having stabilised over the past year. In addition, with sharp falls in interest rates, we expect a lift in the housing market over the coming months, and that will encourage new housing development over time.” ■

Rents up, but long-term tenants hard to find The national median weekly rent increased by $10 a week in January, but the supply of rentals is also up significantly, the latest Trade Me Rental Price Index shows. This could indicate future downward pressure on prices as more properties are available and renters have more choice, Gavin Lloyd, Trade Me property customer director says. The number of rental listings was up 13 per cent nationally compared with December, and 40 per cent year-on-year. The majority of new listings are concentrated in Auckland at 11,107, up 13 per cent month-on-month, Wellington at 4,030, up 22 per cent month-on-month), and Canterbury at 2,591, up 5 per cent month-on-month. “With so many rental options available, securing a long-term tenant is more challenging than in recent times,” Lloyd says. “Attractive, well-presented and maintained rental properties will always be popular, and landlords with properties that have been vacant for a while might need to consider making their property more competitive, either by adding improvements or reducing the price.” Taranaki had the largest month-on-month increase in price, with a 6 per cent rise to $620 per week. Wellington followed with a 3.8 per cent increase to $675 per week, now surpassing Auckland’s median weekly rent of $670. Canterbury showed a 2.7 per cent month-on-month increase reaching $580. The biggest drop in weekly median rent this month was in Otago. ■

House prices could be about to turn a corner House values nationally had their first meaningful increase in more than a year, although it was modest by past standards, CoreLogic says. The property analytics company put the February median value of houses at $807,164, up 0.28 per cent compared to January, but down 3.82 per cent compared to February last year. All main centres had an increase in their median value in February except for Tauranga, where it dropped by 0.18 per cent for the month. Most regions recorded increases in median values in February apart from Bay of Plenty, down 0.12 per cent, Manawatu/Whanganui, down 0.28 per cent and West Coast, down 1.25 per cent. CoreLogic chief property economist Kelvin Davidson says it was always likely property value falls last year would come to an end at some stage early this year, given the extent of interest rates cuts since July/August last year. He says high stock levels could keep a cap on rising values. ■

Market Update

Staggering increase in building costs A new QV CostBuilder study shows building costs have increased at an average rate of 44 per cent over the past four years. The study looked at the comparative cost of building a standardised 150m2 home across six main urban centres – Auckland, Wellington, Christchurch, Dunedin, Hamilton and Palmerston North. It showed construction costs have increased by the largest percentage in Dunedin 47.1 per cent since 2020, followed by Palmerston North at 46 per cent. In Auckland, construction costs increased by the smallest margin at 39.4 per cent. Christchurch at 40.5 per cent wasn’t far behind, with Hamilton at 44.8 per cent sitting just above average. In real dollar terms, Wellington had the largest average increase in the cost to build a home; its average build cost increased by $900 per square metre in five years. As a percentage, the cost of building a home in the capital increased by an average of 45.9 per cent since 2020. The rate of building cost inflation has slowed markedly in recent years. Last year was a different story – costs increased at a rate of between 0.7 per cent and 2.2 per cent across the six main urban areas. The smallest percentage increases were in Auckland and Hamilton at 0.7 per cent each. Palmerston North at 2.2 per cent had the biggest increase last year. The standard home was based on three or four bedrooms, with one or two bathrooms. ■

Housing confidence momentum dwindling People are still mostly optimistic about the housing market outlook, although there has been some loss of momentum across the quarter to the end of January, ASB’s latest Housing Confidence Survey shows. For the sixth consecutive quarter, people remain optimistic about house prices. A net 33 per cent of respondents expect house prices to increase, although that’s down from 44 per cent over the same period a year earlier. That decline in optimism appears to have mostly happened late in the last quarter, with price optimists dropping from a net 37 per cent in December last year to a net 28 per cent in January this year. More surprising was a drop in the number of survey respondents expecting interest rates to decline, with a net 51 per cent expecting further declines compared to a net 57 per cent in the previous survey for the three months to October 2024. However, the latest survey was undertaken before February’s Reserve Bank cut to the official cash rate to 3.75 per cent and its outlook for the year. ■

14 NZ PROPERTY INVESTOR

Your Rates

All about timing If investors get their mortgage terms right, there’s the possibility they could capitalise on future rate cuts, writes Kris Pedersen.

n the back of the February 19 50 basis point cut to the official cash rate (OCR) there has been the very welcome sight of interest rates starting with a four again. There’s been a rapid change to where we were in the middle of 2024, when interest rates were sitting in the high 6 per cent or early 7 per cent range and Reserve Bank governor Adrian Orr alluded that there was a chance of further increases. The Reserve Bank has now signalled that the pace of cuts is likely to slow, we are more likely to see future cuts being 25 basis points, rather than the 50 we have had over the last three reviews. Over the last year or so, we have been in favour of the six-month rate, as it made sense to ride the rates down. There is now starting to be a large difference in the rates offered between the six- and 12-month terms, and out to the 24-month period, which is where some banks are pricing competitively at 4.99 per cent. How I have been deciding which option to take is by doing a basic break-even calculation, as follows. Loan amount $1 million Rates offered 6-month rate: 5.69 per cent 12-month rate: 5.15 per cent 24-month rate: 4.99 per cent The process is calculating the interest costs, which are $51,500 for the 12-month term and $28,450 for the 6-month term. By taking the six-

month cost away from the 12-month cost, we come to $23,050. If we double this figure, we can see that to end up in a better position by rolling two six-month terms, the sixmonth interest rate would need to be 4.61 per cent or lower in six months’ time – otherwise it is not worthwhile rolling two six-month terms over the 12-month option. While I expect we will see at least another 50 basis point drop to the OCR, I don’t see the six-month rate being anywhere near 4.6 per cent.

MORTGAGE LENDER ANZ

6 FLOATING MTH 6.89

If the same calculation is conducted, where the one and two-year options are compared the 12-month rate, it would need to be at around 4.83 per cent or better in 12 months. I think this could be a possibility. I also think there is a strong chance that the low point in interest rates may be in the next 12-18 months. Fixing for 12 months now creates the opportunity of fixing for the longer term when we reach this low point. But if you fix for 24 months, there is a real chance of missing the low point of this cycle. ■

1 YEAR

18 MTH

2 YEARS

3 YEARS

4 YEARS

5 YEARS

6.49

5.89

5.79

5.59

5.89

5.99

ANZ Special

5.89

5.29

5.19

4.99

5.29

ASB Bank

6.89

5.89

5.25

5.19

4.99

5.35

5.79

BNZ - Classic

6.49

5.99

5.89

5.69

5.59

BNZ - Mortgage One

7.04

ASB Better Homes Top Up

BNZ - TotalMoney

7.04

Kiwibank

6.75

6.69

6.09

6.39

6.59

6.69

6.8

Kiwibank - Offset

6.75

Kiwibank Special

6.75

5.79

5.19

5.59

5.79

5.89

6.8

SBS Bank

6.99

6.69

6.29

6.09

6.19

6.39

TSB Bank

7.69

6.69

5.99

6.29

5.79

6.19

6.59

6.69

TSB Special

6.89

5.89

5.19

5.49

4.99

5.39

5.79

5.89

6.99

Unity

6.89

5.89

5.29

5.19

4.99

Westpac

6.99

6.59

6.09

5.89

5.99

Westpac Choices Everyday

7.09

Westpac Offset

6.99

Westpac Special

5.99

5.49

5.29

5.39

6.99

5.97

5.44

5.39

5.29

5.49

5.79

5.89

6.8

Median

The interest rates specified in this table were accurate on 14 March 2025. Interest rates are subject to change without notice. Different fees and charges apply to each loan depending on the motgage lender. Seek expert advice to determine the mortgage lender that is right for you and your circumstances. A Disclosure Statement is available on request and free of charge. Data provided by tmmonline.nz

nzpropertyinvestor.co.nz 15

Investor Data

MILES HOLDEN/TOURISM NEW ZEALAND

LEFT There is more interest from buyers in commercial property. RIGHT Investor-targeted properties for sale in Otago increased by 47 per cent in January.

Investor listings increase

January data from realestate.co.nz reveals an increase in sellers targeting investors, with Canterbury and Otago real hot spots.

ellers are increasingly targeting property investors according to listings data from realestate.co.nz. The number of properties aimed at investors increased from 2,972 in January 2024 to 3,382 nationally, a gain of over 13 per cent. Vanessa Williams from realestate. co.nz explains that listings were up across the board year-on-year, and the investor-targeted listings are a natural flow-on effect. This also reflects the wider trend of investors re-entering the market as government changes come into play. “The government has made changes that are favourable for investors: the reintroduction of interest deductibility, reduction in the bright-line test, and changes to

the Tenancy Act that give control back to landlords.”

Deep dive

Drilling down deeper into the data offers some useful insights. The Otago market had an increase in listings targeted at investors of 47 per cent; the Canterbury market had a 37 per cent increase in listings. Building consents for Otago are also up by 24.9 per cent in January 2025, but Canterbury consents were down by -2.1 per cent. Interestingly, multi-unit dwelling consents in Otago (such units are often targeted at investors) had experienced a year-on-year increase of 17.8 per cent in January 2022 and 24.8 in January 2023. Canterbury saw the same trend –

realestate.co.nz has been helping people buy, sell, or rent property since 1996. Established before Google, realestate.co.nz is New Zealand’s longest-standing property website and the official website of the real-estate industry.

16 NZ PROPERTY INVESTOR

in January 2022, there was a 52 per cent year-on-year increase in building consents for multi-unit dwellings, with a 45 per cent increase for the same period in 2023. It is possible that the increase in investor-targeted advertising may relate to a glut of multi-unit dwellings coming on the market after the post-Covid unit boom. Williams believes that 2025 will be a relatively good year for investors, with lower interest rates and more favourable legislative conditions. However, she says that it’s unlikely yields will be climbing much this year. “Rental rates are remaining steady and declining in some areas so we don’t think yields will jump much this year. For investors wanting capital gains, prices are also remaining steady and we don’t see this changing until the large volume of stock starts to reduce.”

Commercial overview

Commercial property listings have been low so far this year, compared to the last few years. Williams explains that commercial has also experienced a slower pick up compared to the residential market, but realestate.co.nz is seeing buyer and lease interest pick up. “Similarly to residential […] we are seeing buyer and leasee interest pick up with more people searching for commercial listings on our site yearon-year. In February there were 12 per cent more property seekers in the commercial-for-sale category compared with the same time last year.” She continues that the commercial market is driven by business confidence, which we saw increase at the end of last year and into 2025: “However, we haven’t seen an increase in business loans just yet. “This tells us that while the confidence is back in the market it’s not currently translating into action.” ■ * Investment properties have been selfidentified through the use of specified key words within the property listing.

nzpropertyinvestor.co.nz 17

When the worst happens

Q A

I am a landlord and I am curious about what happens to a tenancy and bond if a tenant dies during the tenancy?

Our experts address your property queries 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 joanna@informedmedia.co.nz to have your questions answered.

MEET our expert panel Matthew Gilligan Gilligan Rowe + Associates, gra.co.nz

Mark Withers Withers Tsang, pkfwt.co.nz

Kris Pedersen Kris Pedersen Mortgages, krispedersen mortgages.co.nz

Shane Campbell Wynn Williams Lawyers, wynnwilliams.co.nz

18 NZ PROPERTY INVESTOR

Ryan Weir Property Scouts, propertyscouts.nz

Sarina Gibbon Independent tenancy consultant, sarina@tenancy advisory.co.nz

What happens in this situation depends on the type of tenancy you have – a sole-tenant tenancy or a multi-tenant tenancy. If a tenant in a sole-tenant passes away, the tenancy terminates on the earliest of: • 21 days after the tenant’s personal representative or next of kin gives written notice of death to the landlord • 21 days after the landlord gives the tenant’s personal representative or next of kin written notice to vacate • a mutually agreed date between the landlord and the tenant’s personal representative or next of kin that is recorded in writing • a date as determined by the Tenancy Tribunal following the landlord’s application to terminate.

The tenant’s estate (the executor or a court-appointed administrator) will step in to apply for bond refund following specific requirements as set out by Tenancy Services, including death certificate, proof of authority, signed bond refund form and signature ID. The Residential Tenancies Act is silent on what should happen when one tenant in a multi-tenant tenancy passes away. The deceased tenant’s estate will follow the same bond refund process as in a sole tenancy by filling in a change of tenant form. Since the remaining tenants are jointly and severally liable, the tenancy continues unchanged from the landlord’s perspective. However, it is still good practice and indeed an act of kindness for the landlord to facilitate a tenancy variation to remove the deceased tenant’s name. While this does not materially affect the landlord’s rights, it is a good starting point that would help the remaining tenants reset their private rights and obligations against each other, such as how rent contributions will be handled. At an already difficult time, providing this certainty is a simple way for landlords to support their tenants. ■ Sarina Gibbon

Expert Advice

Bedroom size

I have a rental property built in the 1950s with a small room measuring 1.6m wide and 5.8m2 in area. I feel the property is a threebedroom home, inclusive of this room, and would like to rent it as such. However, I’ve heard the room might not meet the legal standards for a bedroom, so I may have no choice but to advertise it as a two-bedroom property, which could adversely affect my return. Are there any exemptions for older properties that might allow this?

The Housing Improvement Regulations 1947 require bedrooms to meet a minimum width of 1.8m and an area of at least 6m2. Unfortunately, your room does not meet these requirements, as its width of 1.6m and area are both below the minimum standard. An amendment in 1975 broadened the definition of “existing houses” to include properties built before April 23, 1975, such as yours. This allows rooms measuring between 4.5m2 and 6m2 to be used as bedrooms for children under 10. However, the width requirement of 1.8m remains non-negotiable regardless of the home’s age. Although you view the property as a three-bedroom home, advertising it as such may expose

you to disputes if tenants challenge the compliance of this room. This could mean marketing it as a twobedroom home. One way to mitigate this is by promoting the property as a twobedroom home with an office – this could be a strong selling point,

specially in the post-Covid era where many tenants appreciate having a home office. Alternatively, you could check with your local council for any records confirming the room’s use as a bedroom. ■ Ryan Weir

Best strategy for mortgage

What is the best mortgage strategy for one owneroccupied and one investment property? Our goal is to pay off the OO in a few years. We have a combined income of $220,000. The OO has a $100,000 mortgage and the IP has a $450,000 mortgage. We have no significant savings. As our money is tied up in the stock market we can’t do an offset account. Should we split the OO in six-month fixed terms and throw money on it every renewal? Are there any other strategies?

Based on what you have stated, I will presume that the $100,000 mortgage on your personal residence isn’t interest deductible. If this is the case, then it makes sense to concentrate on paying this off first. Look to fix the investment mortgage and ideally, I would have this on interest only and concentrate your additional repayments towards the $100,000. You may want to consider breaking this mortgage into different tranches and have part of this as a revolving credit facility where you put your incomes into this, pay as many

bills as possible on a credit card and look to utilising an interest free period and then pay off the card before any interest is changed. You can also look to store any surplus funds in this. If you do this correctly you can save considerable amount of interest costs. Note for the remaining amount you would fix this. ■ Kris Pedersen

nzpropertyinvestor.co.nz 19

Expert Advice

Tax fishhooks for new property

We bought our current home in 2018. We will be buying another home soon and renting out our current home. From my reading of the IRD website, I understand that from April 1 this year we will be able to claim 100 per cent of the interest on the mortgage on that home as an expense. Am I correct? Are there any fishhooks?

Yes, that is correct, the coalition government has phased back in the tax deductibility of interest on borrowings for residential investment property. Fishhooks, yes … only the interest on the debt that related to the original purchase of the property is deductible against the rent. Given you purchased the home in 2018 you will likely have equity in it. Any money borrowed to buy the new home, even if the old one provides security for the borrowing, is non-deductible. You may like to consider restructuring the ownership of the old home with the possibility of moving equity into the new house and creating an arrangement where more debt is associated with the restructure entity acquiring the old home for rental. Equity levels and the amount of new debt you need for the new house will determine if this is worthwhile. Note that restructuring can trigger bright-line issues, so seek advice on your specifics. Note also, we still have residential loss ring-fencing rules that prevent rental losses being offset against income other than other residential rental income. ■ Mark Withers

Tax implications of moving to Australia

I am shortly moving to Melbourne. I will be selling my owner-occupied house and buying two rentals in New Zealand. Are there any tax implication for doing this? What is the best way to manage this situation?

The first point to note here is that you will need tax advice on the Australian tax implications of holding New Zealand rentals. If you are moving to Melbourne permanently, you are highly likely to become a tax resident of Australia. This means it is possible that you will have to declare rent from the New Zealand properties in your Australian tax returns. The properties may also

20 NZ PROPERTY INVESTOR

be dragged into the Australian capital gains tax net. However, that is not a given because Australia does have a concession for new migrants who enter the country on “temporary” visas, which can apply to Kiwis entering Australia on their New Zealand passports and being issued with a special category visa. This is why you need to get Australian tax advice. From a New Zealand point of view, the rental income will be taxable here. In fact, whether you are tax resident of New Zealand or not, the tax consequences of holding a rental property here are almost exactly the same. The rental income is taxable, and you can claim deductions for costs

incurred in deriving the rental income, such as interest on any loan, rates, insurance, property management fees and repairs and maintenance. One point of difference is that if you lose tax residency in New Zealand, your interest deductions can be limited if your loans total more than 60 per cent of market value of the assets. These are known as the “thin capitalisation” rules. What you will probably gather from the above is that there is more complexity when you are straddling two tax jurisdictions. You need to make sure you get good advice on both sides of the Tasman to guide you here. ■ Matthew Gilligan

Buyer’s rights

I am settling a new build in two days’ time and tenants are moving in immediately after. When the building inspector went back for a final check, he found the new kitset shower had a small leak. We advised the seller’s lawyer it needed to be fixed, even though it had been signed off by the council. The recommendation from the inspector was to remove the shower and reinstall it properly. The construction manager stated he was a master builder repairer and knew what he was doing. He said it was not uncommon for new showers to leak sometimes. He said the repair process was putting sealant around the shower with patching applied around it to complete waterproofing. I am concerned this leak popped up on the second and final inspection. What are my rights if the shower is still leaking six months down the track?

Your rights are mainly set out in the Building Act 2004 and in the agreement for sale and purchase (ASP) that you entered into for the purchase. There are implied warranties set out in section 362I of the Building Act where you enter into a contract for the construction of a residential building or a contract to buy a residential house from an “on-seller” (which is essentially a developer who arranges for the house to be built with the purpose of selling it). While we do not know your exact contracting arrangement it is likely that the Building Act warranties would apply to your situation. If this is the case, there would be warranties implied into the ASP that the vendor will have carried out (or have arranged for the work to be carried out) in a proper and competent manner and with reasonable skill and care, in accordance with the plans and relevant consent, and in compliance with the building code. If the shower begins to leak six months after settlement, then

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that may be because of a breach of one or more of the warranties above. Where those warranties have been breached, you are able to give the vendor a chance to rectify the issue and, if they refuse to do so, arrange to fix it yourself and recover the costs from the vendor. What the appropriate fix to any defect is depends on the circumstances of each case. Sometimes a repair will be possible and other times a full replacement of the defective works might be required. You may also be able to claim other consequential damages such as the loss of any rent during the period of the repair. If the vendor does not agree to carry out the works or pay for the cost of doing so, then you can file a claim in the Disputes Tribunal to seek to recover the costs. The Disputes Tribunal has a limit of $30,000 it can award (if it is above that, a claim in the District Court would be required). ■ Shane Campbell

Contact your local Propertyscouts office for a free rental appraisal & go in the draw for 1 years free property management!

Political Update

Working with all sides It’s important for NZPIF to work with everyone in the political spectrum in order to have a seat at the table when change inevitably comes, as Matt Ball explains.

y the time you read this, we’ll be in a new tax year. An exciting tax year, the first one in in a while in which you will once again be able to claim all your mortgage interest as a business expense. Thank god that’s over. Or is it? Just like in the movies, you think the bad guy or gal has been dealt to, but no, by some miracle they’re still alive and they come back at you. Welcome to April 7, when those of us who copped a tax bill last year have to cough up the loot. That hurts,

22 NZ PROPERTY INVESTOR

especially if – like me – you made a loss last financial year. Who in their right mind thinks that’s ok! Our former – and future – government. Labour hasn’t abandoned this policy yet. When we met with Labour’s shadow housing minister Kieran McAnulty in February, he was very clear in his view that the policy had encouraged more new builds. That’s debatable, but what’s not is that Labour’s very clear policy goal is to address the housing shortage in New Zealand. McAnulty considered that a policy like the removal of interest deducibility, if it results in more new homes, was very much a live option. If you add in Labour’s only likely coalition partners the Greens and Te Pāti Māori, who have even stronger views on the matter, you can see the way the wind is blowing. I don’t want to alarm you further, but, heck, why not. Polls are not looking good at the moment for the current government. Several recent polls have put the centre-left ahead

and in a position to govern after the next election. In 2026. Barely 18 months away. National/ACT/NZ First could still pull one out of the bag, but if they don’t, they’ll be a one term wonder. Before you reach for the phone to call your favourite real estate agent and sell everything, wait. All is not doom and gloom. For a start, interest rates are already lower and may drop a little further. While rents are down in some areas, property prices are also down, there’s plenty of stock on the market and there are bargains to be had. If you can pick something up for a good price, maybe add some value and come out with a cashflow positive investment, you can still be onto a winner. The election is 18 months away. There’s time for the coalition to turn things around, but there’s also time for us to talk to Labour in particular, but also the Greens and Te Pāti Māori and try to persuade them to adopt fairer policies. To his credit, Kieran McAnulty will welcome ideas from NZPIF and our members for ways to make housebuilding easier and increase housing supply that don’t include punishing people – like you – that just want to provide a decent rental and make some money from doing that. One of the things we need to remember in all our dealings with parliament is that governments change. We can’t afford to hang our hats on one party, and for two reasons. First, if it looks like we’re in league with one side, the other side will ignore us. Second, governments always change. We need to stop the wild pendulum swings which currently result from changing governments and get to a point where both sides – broadly – agree. This is not a pipe dream. Already, there is far more agreement and cooperation in parliament than there is disagreement. You don’t see this because arguments play better in the media. Labour and National already share a lot in common when it comes to the changes needed to increase the housing supply. We just need to work with them to get more agreement on matters concerning residential rentals. That’s my job in a nutshell. ■

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Profile Eve Prouse

ADDING VALUE

Eve Prouse is passionate about property investment and the power valuation has in unlocking a home’s potential. writes Joanna Mathers. Photography by Stephanie Creagh.

n an industry dominated by men, Eve Prouse stands out. The 36-year-old from South Auckland spent six years training to be a property valuer and has many unique insights around the industry. She also understands that property ownership is an investment in the future – having sold her first family home, she and her husband purchased a property with three free-standing homes, two of which she rents out.

Getting started

Prouse grew up in Manurewa, South Auckland. Her parents weren’t investors, and while she had an aunty who was briefly a real estate agent, she didn’t have role models in the

industry as she was growing up. She studied marketing and management after leaving school and found work in the industry. But she didn’t love it. “I was working in a marketing assistant role at a global firm, alongside dietitians and nurses. I loved the people I worked with, but I wasn’t working in the capacity I wanted.” She was also concerned about her living situation. He parents split up when she was in her early 20s, and she was living with her father. “I was worried about my future living situation; I had two family dogs I inherited from my parents’ divorce, and I was struggling to find a decent rental because I had dogs.” she shares.

Profile Eve Prouse Eve Prouse understands how to unlock the hidden value in properties via the valuation process.

“I had this fear that I would be stuck living with my dad forever; it really gave me motivation to save and buy a house.” By 2013, at age 25, she had enough money to buy a house with her partner, who she would go on to marry. Located in Papakura (“conveniently close to my dad,” she shares) the brick-and-tile, four-bedroom, twobathroom, double-garage home was secured for just $372,500 – a price that still irks her.

26 NZ PROPERTY INVESTOR

“I didn’t know much about property back then, but the real estate agent hustled me into paying that extra $2,500. Looking back, it annoys me how naïve and gullible I was in that situation. I know now that I should’ve got a valuation.”

Change of focus

Prouse was still working in marketing at this point, but she was keen for a change of career. A woman she worked with had sent her teenage

children to a career advisor, and it got her thinking about her own future. “I hired the same careers advisor, and she was great. I’d realised that property was my passion, so she worked out the industries that were suitable. I wasn’t interested in some of the jobs – construction or the like. But property valuer sounded interesting to me.” In life, there are often moments of synchronicity – uncanny coincidences that can alter your course. Around the time Prouse attended her session with the career advisor one such moment occurred. “I was chatting with the receptionist at the firm I was working for and told her I was interested in becoming a valuer. She told me her dad was one and invited me for dinner with him. “So, I went to meet her dad [Tony] in his home in Mt Eden: I asked lots of questions and he was really helpful.” Prouse has kept the piece of paper with the questions she wrote from that first dinner. It’s a treasured object for her. “It’s a memory keepsake; both Tony and his daughter have passed away,” she shares. “But they were such an important part of my life and career.” This meeting fuelled her desire to become a valuer. Qualification is a long process – three years of full-time studying, followed by three years of supervised full-time practical work experience, and a gruelling three-hour registration examination. But she had to work at the same time, so found a job in the property industry, at commercial property firm CBRE. Studying at night and working fulltime during the day, the experience was intense. But she believed that once she graduated from her course, she would be able to work at the head office of CBRE as a valuer. Sadly, she was made redundant after a restructure. Fortunately, she found a job as an assistant valuer in Takapuna on Auckland’s North Shore. But living in Papakura and commuting to Takapuna every day was arduous. She decided she wanted out and contacted a local valuer to see if

they had a position going. It was another moment of synchronicity. “One of the valuer’s who owned the business and became my main mentor ended up being the cousin of the valuer I had met through my friend and co-worker, Tony. I got the job; and Tony called me on my first day at the office to congratulate me.”

Out on her own

Prouse is now a registered valuer with her own company. She specialises in commercial and residential valuation in South Auckland. Her investment journey has seen her sell her original home and move into a site in Papakura that has three freestanding properties – the home where she and her family (husband and nearly 3-year-old son) live; boasting a total of eight bedrooms, four bathrooms, a study, three living areas, a single integral garage and double carport. Having bought her first home for $372,500 she sold it for $670,000 in 2018, using the equity to purchase the three-home site for $980,000. She has always educated herself around property and read many books on the subject. It made her aware of the importance of property as a tool for the creation of intergenerational wealth – three standalone homes on one site was an excellent opportunity. She has not done much to the

‘There is so much that people can discover through the valuation process’ properties, they are “clean and tidy”, additions have been made to meet the healthy homes standards, and the smallest standalone property had a single garage conversion into two rooms. They also popped up a fence around the properties to make them safe, and the rentals are pet friendly, which is great for attracting long-term renters. These long-term buy-and-hold properties have an impressive gross yield of 9.7 per cent, if calculated using the purchase price.

Valuable insights

As a valuer, Prouse understands how important it is to manage the expectations of her clients when it comes to the value of their homes. She says that many people believe that she can make a quick decision about the value of a home the moment she sees it: “they don’t realise that going through the home is the easy part”. The process of valuing residential property can take up to six working days – but depending on the urgency and complexity. It’s a highly complex process and

many factors need to be considered when making a valuation. By specialising in South Auckland, a place where she has always lived, she is able to offer her clients extremely accurate assessment of the homes she values. And she believes it is very important for investors to have their homes valued, even if they don’t think they need to. “My reports can help investors understand how to increase the value of their properties. I can flag any issues that might put off buyers – factors like bathroom and kitchen design, or homes that are not fully secure can reduce the value of the property.” She says that the role is “intense, exciting, high-pressure, fastpaced, dynamic, detail-oriented, communicative, quantitative, and qualitative”. And she is passionate about sharing her knowledge with others. “There is so much that people can discover through the valuation process – it offers investors far more than what they may expect. There is so much information contained in the documents that can be used to unlock unrealised value.” ■

nzpropertyinvestor.co.nz 27

TRIBUNAL TROUBLES Calls for a separate tribunal division to deal with rent arrears are growing, as Sally Lindsay explains.

28 NZ PROPERTY INVESTOR

Tenancy Tribunal

ent arrears are an increasing problem for landlords as the cost-of-living crunch and unemployment has put many renters on the financial breadline. Rent arrears cases are clogging up the Tenancy Tribunal and there are calls for a separate division to handle these. Of the 6,093 landlord applications to the Tenancy Tribunal in the fourth quarter of last year, 62.25 per cent were rent arrears, with 46.80 per cent of all applications in Auckland. This works out to about 6 per cent of all tenancies going into arrears and about 2 per cent of landlords every quarter taking rent arrears cases to the tribunal. It’s not known how many landlords don’t go to the tribunal and come to an arrangement with tenants over arrears and forgo missed rent payments, or how many tenants are getting into arrears at multiple properties. While not a huge number in terms of the number of rental properties throughout the country, it can add up to a big financial burden on landlords.

‘Last year 29,309 tribunal applications were made. This was up from 25,362 in 2023 and 20,373 in 2022 – the majority for rent arrears’ It takes on average eight weeks to have an application processed by the tribunal. In Auckland it’s even longer to get a hearing.

The numbers

Last year 29,309 tribunal applications were made. This was up from 25,362 in 2023 and 20,373 in 2022 – the majority for rent arrears. In the first two months of last year, landlords were dealing with around $1.3 million of unpaid rent arrears, based on tribunal data. Most of the arrears’ orders were for amounts between $2,000-3,000, with some reaching up to $10,000. The loss to the industry each year is well over $100 million – and that is just

for cases that go through the tribunal. It can be difficult for landlords to collect large sums of money due to the ineffectiveness of civil enforcement in New Zealand. If the arrears sum is moderate many landlords don’t bother to enforce their rights through the tribunal because the potential payoff is peanuts in comparison with the cost and time involved in participating in the tribunal process. It takes just over eight weeks to hear a residential property case nationally, except in Auckland, where it is longer. The eight weeks was the average time from when an application was submitted to its first tribunal hearing date.

Tenancy Tribunal

Tribunal dispute resolution national manger Katie Gordon told the NZ Herald recently the Ministry of Business, Innovation and Employment, the Ministry of Justice and the tribunal were continuously working to make operations as efficient as possible without compromising the quality of the service provided to participants. Examples of recent changes included greater use of remote hearings and improvements to scheduling to cut the time it takes for people to find out when their mediation or hearing is. Tribunal wait times improved as a result of these and other factors.

Sounding the alarm

Despite this, the New Zealand Property Investors Federation (NZPIF) is sounding the alarm and pushing for a separate division of the tribunal to handle simple arrears cases only. It put this to all political parties before the last election and since then the issue has been pushed from the Justice Minister to Courts Minister and now Housing Minister. “We are confused and having a bit of trouble identifying who should make these changes,” Matt Ball, NZPIF PR and advocacy manager says.

30 NZ PROPERTY INVESTOR

“We obviously talk to Housing Minister Chris Bishop, and he is receptive to open discussion, so we will raise it with him directly, but it would be nice to involve all the agencies.” Ball says it is an issue both tenants and landlords have an interest in because the tribunal is being clogged up with what essentially are minor cases and more serious cases are taking much longer than necessary to be heard. “Many rent arrears cases do not require the nuanced adjudication that other tenancy disputes might.” Ball says NZPIF’s argument is that it’s a very straightforward matter – either a tenant has or hasn’t paid the rent. There is little room for dispute, and it is not a complex legal disagreement. “If you haven’t paid rent for three weeks, then that can have a severe consequence for the landlord who must keep paying the mortgage and other outgoings on the property. The process of recouping the arrears can take a significant amount of time that can add to the money lost.” Under current regulations, landlords cannot bring a case for tenancy termination until rent is at least 21 days in arrears.

System too slow

The existing system can be too slow for landlords dealing with accumulating unpaid rent, often leaving them with significant financial burdens while waiting for a resolution. David Faulkner, Property Brokers property management general manager, says there are many stories of landlords struggling to evict tenants, which impacts their ability to re-let the property and causes cashflow issues, NZPIF vice-president Peter Lewis says this means, on average, a tenant could live rent-free for up to 55 days – or nearly two months – before a resolution is reached. “For landlords, even with a maximum bond claim, unpaid rent then exceeds the bond amount, leaving them struggling to pay their own unavoidable costs.” He say mediation, intended as an initial step for dispute resolution, often fails when tenants refuse to participate. In such cases, the matter proceeds to the tribunal, adding at least two weeks to the process – sometimes longer. Part of the problem was when the former Labour Government changed section 56 of the Residential Tenancies Act (RTA) to state adjudicators may issue termination orders if a 14-day

notice to remedy rent arrears is not complied with. Lewis says previously, section 55 allowed for mandatory termination orders when arrears exceeded 21 days. “However, amendments to the RTA in 2021 introduced conditional orders, creating a less definitive process that often requires hearings, further burdening the system.” Another problem is when tenants come to an arrangement to pay their rent arrears and stop paying. Landlords then have to go through the whole tribunal process again. It really drags out the whole system. “We want to see a return to more unequivocal language.” “The inefficiencies in the tribunal system have persisted for years, causing frustration for all parties involved,” Lewis says. Property Brokers, which has a zero tolerance policy to rent arrears, lets tenants know if the rent falls behind by a week, it will apply to the tribunal to resolve the matter. While they are waiting to get a tribunal hearing, the arrears continue accumulating, Faulkner says. “This helps nobody. The landlord is out of pocket, and the tenant could find themselves evicted with a bad credit rating.”

‘Many rent arrears cases do not require the nuanced adjudication that other tenancy disputes might’ MATT BALL

He says when the tribunal handles rent arrears cases, it wastes time for the landlord and adjudicator. “Typically, tenants do not attend these hearings, making the process one of merely putting a formal seal on an order.” A more efficient solution would be to handle rent arrears cases remotely outside the tribunal, he says. “After the tenant is 21 days in arrears, the landlord could submit an application with all necessary evidence, such as rent statements, arrears notices, a copy of the tenancy agreement, and the tenant’s contact address for service. Under section 55 of the RTA, if the tribunal is satisfied the tenant is at least 21 days in arrears, it must make an order terminating the tenancy.” Faulkner says a remote adjudicator could verify the submitted information

and issue orders for termination and possession without a formal hearing. Tenants will still retain the right to contest the decision within five working days if they can demonstrate a substantial wrong or miscarriage of justice, as stipulated under section 105 of the Act. “This process will limit the risk to the landlord to approximately five weeks of rent arrears,” he says. “Dealing with rent arrears cases remotely will reduce the tribunal’s workload by about 120 cases a week; adjudicators will be able to provide faster resolutions for complex cases with a lighter caseload; there will be consistency and transparency by using standardised procedures for rent arrears cases; and economic efficiency by avoiding unnecessary hearings for both landlords and tenants.”

nzpropertyinvestor.co.nz 31

Tenancy Tribunal

‘Typically, tenants do not attend these hearings, making the process one of merely putting a formal seal on an order’ DAVID FAULKNER

Potential gains

PROPOSED TRIBUNAL REFORMS The New Zealand Property Investors Federation has laid out reforms it would like to see to the Tenancy Tribunal system for rent arrears cases. • Create a separate division for rent arrears cases Landlords would submit applications with supporting evidence of arrears, which would be reviewed on the papers rather than requiring a courtroom hearing. This process could operate online, allowing adjudicators to work remotely, reducing costs, and accelerating decisions. • Implement a fast-track system for urgent cases Urgent applications, such as cases involving tenants who have stopped paying rent but refuse to vacate, should be prioritised. A fast-track system would ensure these cases are heard within five days of submission, minimising financial losses for landlords and resolving urgent disputes promptly. The fast-track initiative would be feasible if routine rent arrears cases were handled administratively, freeing up court time. • Strengthen enforcement mechanisms Successful claims by landlords often result in hollow victories due to weak enforcement. To address this, the NZPIF recommends granting landlords access to tenant information held by government agencies, enabling better tracking and accountability for unpaid rent or damages. • Introduce penalties for unlawful tenant actions It is common for tenants to stop paying rent after giving notice to end a tenancy, leaving bonds insufficient to cover arrears, damages, or other costs. Making this practice an unlawful act would deter such behaviour. Additionally, exemplary damages for tenant breaches should be increased to act as a meaningful deterrent, with higher penalties for repeat offenders.

32 NZ PROPERTY INVESTOR

Faulkner says implementing this reform requires careful planning but the potential gains in efficiency and justice make it worthwhile. Tenancy Services already offers a fast-track resolution option for resolving rent arrears cases quicker, allowing for expedited hearings and faster outcomes. Under the system, the landlord and tenant have to reach an agreement to repay the debt. This agreement must consist of the actual debt amount up to the day before the next payment is due; details of how the debt will be repaid; the date the payments will begin; and the consequences agreed to if any payments are missed. The landlord must tell the tenant they will be filing a tribunal application for fast-track resolution; get a current phone number from the tenant, and check the tenant is available to take a mediator’s phone call to confirm the resolution agreement. Ball says he has never heard of a landlord using the resolution. “It really is like asking turkeys to vote for Christmas. A landlord has probably got more chance of getting a tenant to pay any arrears by talking to them directly than having them agree to a mediator’s phone call.” He says if a landlord is having to go through this process, then clearly the tenant is not paying back the rent arrears. “The landlord would be better just asking the tenant how they can pay the arrears.” ■

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PROPOSED AUCKLAND DEVELOPMENT CONTRIBUTIONS Matthew Gilligan from GRA on why he believes proposed Auckland development contributions are based on flawed analysis and could crash affordable housing supply.

Infrastructure

evelopment contributions (DCs) are proposed to increase in Auckland to frankly non-viable levels from a development perspective, especially for affordable or middle-end houses. The graphic below shows before and after the proposed costs. Auckland Council asserts that development fees have no impact on house prices, claiming that high development contributions do not influence housing costs because developers do not pass these fees

on to buyers; instead, the market determines prices. This is nonsense, supported by “word salads” dished up by the council’s favoured economic advisers. Of their nine economic reports cited, six did not agree with this assertion. Auckland Council only quoted the three that did in their study of the issue. Further, in 2013 Auckland Council received advice from the Department of Internal Affairs that clearly said development contributions do affect houses prices.

Notwithstanding this, Auckland Council are cherry-picking economic advice and analysis to justify increased taxation on home builders, and are driving policies that will contribute to the next housing crisis – one that is unfolding in slow motion at the hands of Auckland Council. The inevitable decline in housing supply (from making development non-viable through high development contribution costs), will not only exacerbate affordability issues but will also lead to a significant drop in the revenue the council aims to collect.

Auckland Council development contribution increases + Watercare

Total per new house +GST

$26,000

$124k

$26,000

$55k

$26,000

$78k

$26,000

$145k

$26,000

10 years costs

20 years costs

+GST

+GST +GST

+GST

76k

+GST

30 years costs!

nzpropertyinvestor.co.nz 35

Infrastructure

In short, crashed consenting due to non-viability will lead to less construction, fewer ratings, and fewer connection fees. Auckland Council policy advisers are commercially naïve and showing poor judgement.

Infrastructure proposals

A new layer of uncertainty is emerging. The Minister of Housing and Infrastructure, Christopher Bishop, has announced new funding and infrastructure proposals, designed to accelerate infrastructure investment. We applaud his intentions here. No detail yet, but from listening to speeches, it appears Bishop intends to make it easier for councils across New Zealand to levy areas benefitting from new infrastructure. This could mean targeted ratepayer levies in affected areas, to socialise the cost across existing homes as well as new connections. I think extending the cost wider over all users of infrastructure makes

36 NZ PROPERTY INVESTOR

‘The claim that DC charges do not impact housing costs ignores fundamental economic principles’ sense, and is in alignment with the requirement of the Local Government Act, S197AB, which says infrastructure should be spread across the users and capacity life of the asset. However, if they continue to gouge developers with high proposed development contributions and make targeted rating levies, this will just be acid on the wounds of developers and ratepayers and a double dip. We are keeping an eye on this. Moreover, the planning budgets are flawed and over costed. We don’t think central government are aware at time of writing, but we are bringing it to their attention.

SANZ review

Many home builders and people working in the home building supply chain are infuriated by Auckland Council’s costs. I, along with Kirsty Merriman and a number of professionals, have been working on behalf of home builders and homeowners to investigate Auckland Council and Watercare’s planning and charging. This group is called Subdivision Advocacy NZ Ltd (SANZ). We have requested information (some under the Official Information Act), including their financial models, which were not otherwise available until we asked that they be released.

In order to create new homes, developers have to pay development contributions (DC) to coucil. The cost of DCs in Auckland are set to increase significantly this year.

The review has revealed some quite extraordinary things. So extraordinary, we decided to peer review our findings. In short, we think Auckland Council’s financial models are flawed, and their development contribution budgeting process will need to start again. We procured a peer review of our findings. This review, which we will release shortly, says we are right, and the initial results are astounding, showing significant errors which impact the development contribution figures materially. Auckland Council’s economic analysis is self-serving, cherry picked, and also flawed. Heads should roll for this. Auckland Council are failing in their duties to Auckland ratepayers, undermining Auckland’s growth by crashing financial viability of housing developments through obscene development levies. They are failing in their duty to central government by producing misleading financial information.

It’s incredible that an organisation as big as Auckland Council would produce forecasts and reports with such huge gaffs in the information. More to come on this, but it is a showstopper for Auckland Council, and they will need to rework their levies.

Implications for Auckland

High development charges create a ripple effect that suppresses housing supply, exacerbates shortages, and drives prices higher. A decline in housing construction also results in reduced ongoing revenue for Auckland Council from both development contributions and rates. The claim that DC charges do not impact housing costs ignores fundamental economic principles. In the long run, however, rising house prices ensure that Auckland Council ultimately receives its revenue. This issue directly affects Auckland residents. It appears that the Bishop intends to facilitate additional costs through ratings, based on what we believe to be deeply flawed and negligent forecasts. This needs review. If Auckland Council continues to

demonstrate poor budgeting practices and excessive infrastructure spending, should they still be entrusted with its management? A minor example, spending $600,000 to install and later remove a simple traffic crossing, as reported by the New Zealand Herald, appears both imprudent and irresponsible. Similarly, allocating $172,000 solely for traffic management for a crossing in Grey Lynn, described by mayor Wayne Brown as “a disgrace”, highlights further inefficiencies. On average, Auckland Council spends over $466,000 plus GST to install two poles and a patch of compacted bitumen, topped with painted lines. That’s absurd. Rather than asking, “Where do we raise the money from?” the real question should be, “Why does Auckland Council spend ten times what the private sector does for similar projects?” Their procurement processes are evidently failing, alongside their financial forecasting. SANZ is preparing to release its report critiquing the flawed development contributions budgets and Auckland Council’s highly selective economic advice. The report will be available on our website, sanz.nz, and distributed directly to the financial contributors who made the peer review possible. We are also taking it to central government.

nzpropertyinvestor.co.nz 37

TATAKI AUCKLAND UNLIMITED

Infrastructure

There are concerns that affordable housing will be severely affected by high council development contributions.

WILL AUCKLAND COUNCIL GET THEIR HIGH DCs? My view is over the long term, yes. We need to break this down, though, into the three housing markets: • High end: not affected by DC increases • Middle end: moderately affected, but development may still be viable • Affordable housing: severely affected, consenting will crash, and values will fall. This is the area we are most concerned about. Over time, the reduced supply leads to a significant shortfall in new housing developments as projects become financially non-viable. As years pass, the sustained demand coupled with reduced supply leads to a housing shortage, driving prices upward. Eventually, supply resumes, but by then, housing has become significantly more expensive due to prolonged scarcity. A further unintended consequence is the loss of skilled supply chain labour. With limited local opportunities, many workers (engineers, surveyors, planners) will seek employment elsewhere. Once they reskill and establish themselves in a higher-wage market, they are unlikely to return, resulting in a permanent loss of human capital and weakening New Zealand’s ability to meet housing demand. In the short term, council revenues may also decline. With fewer development applications due to financial non-viability, fewer new connections will be made and there will be fewer new ratings for council (property rates are a big source of council funding). Ultimately this will reduce the funds available for infrastructure investment. If developers cannot justify projects due to excessive DCs, the anticipated revenue from these fees will not materialise.

38 NZ PROPERTY INVESTOR

Why do high DCs affect the price of houses?

The relationship between DCs and housing prices is fundamentally tied to economic principles of viability, supply, and demand. 1. A significant increase in DCs, such as the ones proposed, directly impacts project feasibility by eroding developers’ profit margins. As a result, supply diminishes. Developers halt construction and “land bank” their assets, waiting for more favourable conditions. 2. In short, supply crashes, and demand continues to build. Values get pushed up as a result, and it’s not until house prices increase that construction becomes viable, and so the end purchaser pays the higher DCs through resulting house price inflation. Higher DCs therefore get passed along and push up house prices, and this is noted in other reports provided to Auckland Council; they know this. 3. So on one hand Auckland Council say DCs don’t affect house prices, and on the other their own reports say stalled supply will be inflationary, but this will allow for DCs to be paid. 4. If DCs are ramped up, the value of the land that has become nonviable to be developed crashes from a development perspective.

If it costs more to develop a plot of land than you get in revenue, the land has less value or even a negative value. I was told by a member of Auckland Council that this is part of their strategy – the land values will fall and then (he says) developers will sell, and there will be a “reset” on new devalued land. If this is their strategy, this is disgusting. They are attacking landowner’s property values through indirect taxation. We have raised this with our legal counsel. Secondly, in regard to the reset, we say it’s unlikely to occur to any great extent. Auckland Council lack commercial experience saying this. Only distressed developers will sell. LVR settings and bank prudential controls tend to make Auckland brownfield developers financially robust. My bet, very few will sell or be forced to sell. They will just rent the existing houses out. Bear in mind I am a chartered accountant specialising in property, a home builder myself, and my accounting practice has over 7,500 entities that we act for. I know property and home builders inside out. They won’t dump and devalue with high DCs as Auckland Council think. Instead, developers will tend to rent and hold the development sites as homes, and wait. It’s called land banking. So in reply to Auckland Council member’s comments that there will

be a reset in values from high DCs, we say these are brownfields (infill) subdivisions that Auckland Council are trying to levy super high fees on. The land value falls to the lower of a) the value of the land with the house on it as it stands pre-development, or b) the value as a development. We think the Council planners may be ignoring the alternate use of the asset as an existing home in their assumption set. Because the asset has another use, there is no land value crash and “reset”.

SANZ LEGAL CHALLENGE We are raising funds to cover a legal review by a King’s Counsel of our concerns about the Auckland Council. Preliminary advice is that Auckland Council are in clear breach of many of their duties under the Local Government Act, but we await the formal written advice. Secondly, the economic review of council’s “word salad” advisers is scathing. And their failure to review the financial models in tandem with the economic advice is damning. The SANZ initiative is not for profit. Please consider donating to sanz.nz to support the costs of legal and financial reviews. No one involved with SANZ, including the writer or Kirsty Merriman, receives any payment – we are volunteering our time. All donations directly fund legal and peer reviews of financial and economic reports. You can donate here: https://givealittle.co.nz/cause/legalchallenge-fund-acting-now-to-protect

Maximise & protect your investments with a registered valuation South Auckland Specialist Commercial - Industrial - Residential @eveprousepropertyvaluations www.eveprouse.co.nz

With DCs proposed, financial viability is vanquished. This results in the value as a family home trumping the land as development value, and the house gets used a home again, not developed into multiple units. In short, the value will be buoyed by the alternate use as a home, and there will be no reset in value, so supply crashes. Auckland Council are in effect cancelling the zoning through non-viability with these high DCs. It’s not smart. ■

INVEST OUT WEST

MILES HOLDEN/TOURISM NEW ZEALAND

West Auckland investors may be finding it hard to get tenants for their new builds due to oversupply of stock, but there are other options for those looking to invest, as Sally Lindsay explains.

Regional Review West Auckland

est Auckland covers a large geographical area, from the city outskirts to the coast. It includes popular suburbs Avondale, Glen Eden, New Lynn and Titirangi, then extends over the Waitakere Ranges to the Tasman Sea, along the shores of Whatipu, Karekare, Piha, Bethells and Muriwai, before arcing back towards the city via Kumeu, Westgate, Massey, Henderson and Te Atatū. The region is known for its rugged beauty and eclectic charm. Nature reserves, wild surf beaches, hiking and mountain bike trails, orchards and vineyards dot the countryside. Culture thrives here too, with hidden gems around every corner from quaint cafés nestled in the bush to colourful art galleries and vibrant community markets that

showcase local crafts and produce. The popular Waitakere Ranges are the backdrop for most of the west’s suburbs. The ranges have 27,700ha of pristine native bush, scenic waterfalls and more than 250 kilometres of walking tracks, yet they are only a 40-minute drive from the city centre. There is an appreciation for the environment in the west, with a lot of the locals passionate about conservation, and many being engaged in initiatives like native bush restoration, coastal clean-ups and species protection. Beyond the ranges, and alongside the tranquil Manukau Harbour bays of French Bay, Little Huia and Cornwallis is the famous Piha Beach, where tourists and locals flock each summer to enjoy its strong surf, black sand and rugged scenery.

Rental market dogged by unsold new builds

Rental stock in West Auckland is at one of the highest levels ever seen. It’s been exacerbated by the number of newly developed properties dumped onto the rental market, says Graham

42 NZ PROPERTY INVESTOR

McIntyre, West Auckland Property Management owner. He has been in the real-estate business for 20 years and says there is a significant supply of mainly two and three-bedroom new properties in he rental pool because developers can’t get the return they need from selling their stock. “It’s been happening for the past 12 months, but we had anticipated it,” McIntyre says. Properties earmarked for removal by developers, so new developments

NEW LYNN BUSINESS ASSOCIATION

JANICE CHEN /ISTOCK LIFESIZEIMAGES /ISTOCK

Further north is Lake Wainamu for a peaceful and scenic day out, and for keen walkers an hour-and-a-half excursion brings them to Muriwai Regional Park and Woodhill Forest, a haven for mountain bikers, horse riders and dog walkers and set against a windswept and rugged coastline. Muriwai is one of the few mainland gannet breeding colonies in, New Zealand. About 1200 gannet pairs nest there from August to March every year. West Auckland is also home to New Zealand’s diverse and prosperous film industry, with production facilities wowing audiences across the globe with expert production, art, VFX, and animation specialists. Henderson alone features multiple studios including Auckland Film Studios and South Pacific Pictures. Henderson is being reimagined as a flourishing urban eco-centre with sustainability woven into every aspect of life. The west is also home to Auckland’s oldest wine region. It also boasts a diverse range of property, including some of the city’s most affordable housing, right through to modern builds, coastal retreats and expansive lifestyle blocks. CoreLogic’s latest data on the top 10 suburbs in the west found house prices have dropped from 1 per cent through to 4.7 per cent from March 1 last year to March 1 this year. The biggest drop was at Te Atatu Peninsula where prices fell from $1,082,100 to $1,031,450 during the March year, followed by West Harbour prices, which fell 4.6 per cent from $1,266,200 to $1,208,250 and Glendene where values fell 4.4 per cent from $926,950 to $885,900. In Titirangi, one of the higher priced suburbs, prices slipped 3.1 per cent from $1,166,800 to $1,130,500.

could be started, have also been put into the rental pool until the housing market improves. He says West Auckland, in some ways, has been the centre of new development as Auckland Council planning rules changed. “The significant increase in rental stock has pulled rents back by 10 per cent from last year. Rents can vary from $550-750 a week. Typically two-to three-bedroom houses were in the $650-800 range but rents have slipped significantly.”

TATAKI AUCKLAND UNLIMITED TATAKI AUCKLAND UNLIMITED

TATAKI AUCKLAND UNLIMITED

NATALIACATALINA/ISTOCK

CLOCKWISE FROM TOP LEFT Gannet colony, Muriwai; Lake Wainamu, Te Henga; actor rehearsing in the green room at Woah! Studios located in Henderson; film crew recording a scene at Woodhill Forest; EcoDay community festival in New Lynn; apartments in New Lynn; walking in the Waitakere Ranges.

McIntyre’s company recently had a brand new house at Ranui that would have rented from $770 a week a year ago, but the market rate is now about $610-620 a week. He is finding developers are hedging the market. They look at rents on Trade Me and then undercut to get cashflow and try to achieve a reasonable tenancy arrangement. As each developer rachets down rents, by default, that starts to spiral the market down and it is now in free fall.

Price correction

McIntyre says whether there will be a correction is unanswerable because development has not stopped and there are estimates of a 40-50 per cent oversupply of rentals on the market. “Potentially, developers with unsold stock in the rental pool might be able to get it onto the sales market in the next 12 months and that will help alleviate the rentals oversupply.” Some of the new properties don’t have garages, off-street parking or any lawn or backyard. Under Auckland

Council’s relaxed planning rules, developers have far more leeway to build these types of properties, but they are difficult for McIntyre’s company to rent and other agencies to sell. “We could see it coming a mile away because of the pushback from the market was significant right from the get go. People want garaging, they want off-street parking and to be in a position where they have the flexibility of good services within the home to satisfy ease of living.”

nzpropertyinvestor.co.nz 43

Regional Review West Auckland Median price & sales

Annual change in West Auckland’s median price and sales volumes over five years: YEAR ENDING

MEDIAN PRICE

% CHANGE

SALES

% CHANGES

1/02/2025

876,750

-2.6%

3,608

6.3%

1/02/2024

900,000

-8.2%

3,393

3.1%

1/02/2023

980,000

-8.5%

3,290

-35.4%

1/02/2022

1,071,500

20.4%

5,094

6.0%

1/02/2021

890,000

4,804

Source: REINZ

Price band sales

Annual change in West Auckland’s sales volumes across price bands over three years: % OF SALES PRICE BAND

YEAR ENDING FEB 2022

YEAR ENDING FEB 2023

YEAR ENDING FEB 2024

YEAR ENDING FEB 2025

6% 12%

Less than $600k $600k-$699,000

10%

$700k-$799k

11%

16%

$800k-$899k

13%

17%

20%

$900k and over

69%

63%

51%

47%

Source: REINZ

Suburban growth

West Auckland’s top 10 suburbs for capital growth in the year ending Ferbruary 1, 2025: SUBURB NAME

MEDIAN VALUE 1/2/2024

MEDIAN VALUE 1/2/2025

ANNUAL % CHANGE

Massey

$912,250

$912,550

0.00%

Glen Eden

$860,900

$852,650

-1.00% -1.50%

Henderson

$935,000

$921,050

Titirangi

$1,166,800

$1,130,500

-3.10%

Waitakere

$988,450

$956,350

-3.20%

New Lynn

$884,600

$855,300

-3.30%

Ranui

$863,850

$829,450

-4.00%

Glendene

$926,950

$885,900

-4.40%

West Harbour

$1,266,200

$1,208,250

-4.60%

Te Atatu Peninsula

$1,082,100

$1,031,450

-4.70%

Source: CoreLogic

McIntyre says developers are vested in working with the council rather than the market. They have listened to the wrong people because the council was never going to build, and never going to buy, property. Council planners are only going to stipulate what their preference is and unfortunately that is what has been pushed forward. Some will end up as slums, McIntyre

44 NZ PROPERTY INVESTOR

believes. “Our pick is if you have a property and have to go to the lowest common denominator of renter or social housing in order to support that property, the outcome is never going to be great.” West Auckland renters want safe areas to live in above anything else. Typically that includes Hobsonville Point and Hobsonville, which have

a high percentage of new homes. Parts of Massey are regarded as not being so attractive because of the crime statistics. Other areas, such as Glen Eden and Avondale that have good transport infrastructure are also attractive to renters.

Values creep up slowly

Demand for buying homes in West Auckland started off well at the beginning of the year but tailed off by March, Todd Murray, business owner of Harcourts Northwest Realty says. “Demand matched supply well, but in the middle of February it became a bit slower in getting deals done. “However, buyers are far more engaged than they were 12 months ago. It was probably a case of difficulty in getting finance then.” Because there is far more choice for buyers they are taking longer to put their signature on a deal. “It would be weeks longer rather than months in getting a deal closed,” Murray says. In January the agency was getting offers on properties within the first 10 days of them hitting the market and auctions were being brought forward. Despite the market faltering, Murray says there is a willingness from sellers to meet price expectations. “It is actually not a bad time to be buying or selling. Most vendors have adjusted their ideas on values in the past 36 months.” With interest rates falling, he believes many buyers are now thinking it is time to pull the trigger and get into the market, particularly as there are more houses available. “Obviously buyers are going to take their time and compare every property with others.” There has also been a slow drift of investors back into the market, which Murray says hasn’t been seen for some time. “Compared to last year there are a lot more investors around and concentrating on cashflows and yields.” He says some are holding off, waiting to see if the Reserve Bank drops the OCR much further. “It’s at their peril, though. There is a lot of speculation the two-year fixed mortgage rate will settle in to the four to five per cent range, but buyers don’t want to leave it too long as some banks are already offering a two-year term just below five per cent and many economists don’t see it moving much more.”

TODD EYRE/TATAKI AUCKLAND UNLIMITED

Piha is a world-famous beach that attracts thousands of visitors each year.

Investor activity

While there are more buyers around, Murray says the market is not flooded with them. “If the OCR keeps coming down that buyer pool could become large which puts first-home buyers and investors in direct competition, which happened during the pandemic.” He says while the legislation around property investment derailed many investors’ plans to buy or increase their portfolios and first-home buyers gained the upper hand, those rules have now been walked back and the competition between them could heat up again. He points out though, that many investors will still have to top up their mortgages unless they bought incredibly well. Long-term investment gains aren’t really there yet. Many investors looking to buy are

‘Compared to last year there are a lot more investors around and concentrating on cashflows and yields’ TODD MURRAY

still contemplating new builds, where yields can be calculated a bit better and there is lower maintenance. “There are a few developers willing to take reasonable prices for their stock to move it on. For selling price points, Murray says the busiest market is in the $900,000 to $1.2 million range in Waitākere City. “The area has a lot of first-home buyers in the under $1 million range. West Auckland is still one of the most affordable areas in which to buy in Auckland.” If the housing market is not disrupted by local or international events this year, Murray predicts there

will be a small amount of growth of between of 1-to-5 per cent in house values over the next 12-15 months. He says there is buyer positivity and buoyancy now the cost of money is starting to come down. ■

INVESTING IN WEST AUCKLAND

For more information about investing in West Auckland, visit apia.org.nz

nzpropertyinvestor.co.nz 45

DIY Project Alice and Caleb Pearson

CREATING CONNECTIONS

Living spaces are the heart of the home, and it’s important to get them right. Alice and Caleb Pearson, of Pearson + Projects, explore the options. 46 NZ PROPERTY INVESTOR

Living spaces are the gathering places of the home. Neutral colours and seamless connection to other rooms pair to create the perfect place for relaxation and connection.

ith the cold weather drawing in, it’s important to make the most of your living spaces. A well-designed living space is a place where friends and family will be drawn to – a space to relax, chat, play and create memories. Open plan living is ideal – areas that connect lounge, dining, kitchen and dining spaces. It has a dual purpose – providing a functional space that is also highly functional. Before starting on any living room renovation project, it’s important to consider what you already have. What’s in your living spaces, how do they work? Where are the doors and thoroughfares, connections to other spaces, is there good natural lighting? This will help to provide a clear picture of what you are working with. Do you want to add connections, improve layout, or introduce better lighting? This will create a space that both renters and buyers will want. We have renovated older houses where the living, dining and kitchens separated – and we always try to open these up where possible. If we can remove a wall, we will do this to blend and provide connection between living spaces. Adding in a door from a living space to the outdoors adds connection to outside (and possibly a future outdoor living space) while bringing natural light in. You always need to consult professionals to ensure you get the right consents for this sort of work.

nzpropertyinvestor.co.nz 47

DIY Project Alice and Caleb Pearson Alice and Caleb have created many wonderful living spaces in their years as renovators.

48 NZ PROPERTY INVESTOR

Making space

While open-plan living is still popular, open spaces are not the be all and end all in homes these days. There is a move to living spaces with cosy areas, especially with flexibility in how they can be used. We don’t mean separate rooms, instead it’s good to look for subtle ways to create spaces within living areas. A built-in window seat, a small partition or nook that may allow for a home office without feeling like it’s “in” the lounge. It’s safe to choose neutral tones for living areas in rentals or for homes you intend to sell. Living areas are commonly a junction where several spaces connect. Our goal is always to choose a colour scheme that will make the entire house feel cohesive and work in with any existing textures or features. If you have surface areas in a neutral colour it will provide the balance needed and set the tone for adjoining spaces. If there are existing colours you won’t be changing, like kitchen cabinetry,

existing flooring or joinery, you can find a neutral colour to connect with these without clashing. Neutrals make a space feel larger and offer the flexibility to add colour and features with furniture. Your flooring selection will be the most dominant tone and texture you need to scheme your wall finishes with, so decide on these together. While not a must, having a focal point in a living space adds an extra layer of thought and design. A fireplace is a common one, which can be designed to be a focus in a lounge. But it could be a window or door with an outlook, an existing element of an older house you have retained as a nod to the heritage, or a feature wallpaper. Living spaces are used day and night, so lighting is important. Sometimes full light is needed and sometimes, when the TV or fire is on, dim light is a must. Consider having areas of rooms on separate switching or dimmers and add the required power and data outlets where the TV or home office is located. ■

Renovation

All rental properties must adhere to healthy homes standards by July 1, 2025.

Healthy homes compliance

The deadline for healthy homes compliance is getting closer by the day. Rachel Radford from Builderscrack outlines what landlords need to do before July 1.

uilderscrack is seeing a surge in demand for healthy homes-related property upgrades ahead of the July 1, 2025 deadline. Job data shows many landlords are now pushing to ensure their private rentals meet the standards before it becomes a compliance issue. We’ve broken down the latest compliance trends seen on Builderscrack, ways to avoid the compliance bottleneck, average costs of improvements and how to find the right tradespeople for the job to get your private rental up to standard.

Rising demand for healthy homes upgrades

The healthy homes standards were introduced to improve rental property conditions and ensure homes are warm, dry, and energyefficient. This includes raising the standard for heating, insulation, ventilation, moisture ingress and drainage, and draught stopping. While compliance deadlines have been phased in over the past seven years, data from Builderscrack shows some landlords are still working to get their private rentals up to standard. Compared to previous years, demand in 2024 for insulation, heating, ventilation, and moisture control jobs has surged, with demand expected to continue into mid-2025.

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Renovation

Key trends around standards

ABOVE Jobs per year related to healthy homes standards

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Builderscrack has identified some trends from their extensive data around healthy homes standards. • Steady increase at both ends: Demand began shortly after healthy homes came into effect in 2019, plateauing for some years in between due to Covid lockdowns and extensions, and then steadily increased throughout 2024. • Regional variations: Demand for tradespeople and compliance work varied across the country. Major urban regions like Auckland (33 per cent), Canterbury (18 per cent) and Wellington (15 per cent) led demand, followed by Bay of Plenty (8 per cent) and Manawatu-Whanganui (8 per cent) regions. Lesser populated regions like Gisborne (1 per cent) and Marlborough (1 per cent) showed lower demand.

• Common compliance gaps: Of total healthy homes-related jobs, the most frequent issues landlords solved in 2024 was inadequate ventilation systems (33 per cent) and insufficient insulation (30 per cent). • Cost vs quality: The majority of landlords on Builderscrack prioritised cost over quality when prompted to choose between the two; 89 per cent of job posts highlighted the importance of affordability.

Avoiding the compliance bottleneck Avoid the stress of last-minute compliance by securing your tradespeople now. Builderscrack. co.nz makes it easy to quickly find and connect with available tradespeople to compare quotes without the hassle of ringing around. Bundling jobs can be useful – some trades can address multiple aspects of the healthy homes standards in one visit. For example, bundling insulation work with moisture barrier work can streamline the number of tradespeople you hire and potentially reduce call out fees. Make sure you balance cost and quality. Cutting corners on compliance

ABOVE Healthy homes-related trades (percentage)

upgrades can lead to costly rework in the future. These upgrades will maximise your return on investment, keep tenants happy and healthy, and reduce long-term repair costs.

Average cost

One of the most common concerns

for landlords has been the cost of compliance work. Depending on the property’s condition, upgrades can range from minor fixes to major renovations. Builderscrack’s data shows different buckets of costs for completed jobs, ranging from small to large.

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Renovation

A wide range of tradies are needed to ensure homes meet the complex healthy homes requirements.

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As a rule of thumb for compliance work: small jobs are quoted under $1,000, medium jobs from $1,000$2,000 and large jobs over $2,000. In 2024, Builderscrack saw high demand for ventilation jobs with the majority falling in the small bucket, from simple rangehood installations to external vents. The majority of insulation jobs fell in the medium bucket, since they typically involve multiple areas of the house and require ceiling and underfloor access. Large jobs often address multiple standards in one visit, such as installing heating and range hoods on multiple properties. While costs vary due to scope and location, here’s a historical summary of what to expect for common healthy homes-related jobs: • insulation: $550-$8,500, depending on the required top up and total areas of the house • heating: $500-$4,000, depending on the required heating capacity • ventilation: $250-$2,200, depending on the complexity of the work • moisture and drainage improvements: $430-$960, depending on the size of underfloor area and complexity of work • draught stopping: $130-$4600, depending on complexity and quantity of the work.

Finding the right tradespeople

The healthy homes legislation allows landlords to carry out work themselves where a licensed building practitioner (LBP), licensed electrical worker (LEW) or licensed gas worker (LGW) is not required. However, landlords must employ these licensed workers when it comes to restricted work. These are the key tradespeople you’ll need for your compliance upgrades.

• Insulation specialists: Insulation and moisture barrier work is tightly coupled. The moisture ingress standard requires a ground moisture barrier in most cases, alongside underfloor insulation. Note that any moisture barrier work involving drainage will require a licensed plumber or drainlayer regulated by the Plumbers, Gasfitters and Drainlayers Board. • Electricians: You’ll need a licensed electrician (LEW) to perform electrical work on rangehoods, extractor fans, and heat pumps. Electricians can also undertake some heat pump installations, however for more complex jobs, you may want to engage a heating, ventilation and air conditioning (HVAC) specialist. • HVAC specialists: These specialists undertake installation and maintenance of heating systems. Note that all gas-fitting needs to be done by a licensed gasfitter (LGW). • Builders or handypeople: You’ll need a licensed builder (LBP) for replacing or altering external doors or windows for draught stopping. A handyperson can undertake minor draught-stopping work on doors, windows and hinges.

• Plumbers and drainlayers: You’ll need a licensed plumber or drainlayer for remedying more serious moisture ingress issues such as installing water pipes or drainage systems. Ensure you ask for a Code of Compliance (CoC) certificate, or Record of Work (RoW) for any restricted building work and keep it on file for future tenancies and property maintenance.

Last call for compliance improvements

With only a couple of months left until the final deadline, landlords should act now to avoid penalties and ensure their private rentals are up to standard. The key to stress-free compliance work is writing a detailed job description and stating expectations around timeframes and documentation. ■

Builderscrack.co.nz is a leading online home-improvement platform that connects homeowners and trade professionals using patented New Zealand-made tech. Landlords use Builderscrack.co.nz to find, hire and review verified tradespeople for everything from repairs to renovations.

The better way to ﬁnd a tradesperson. Post your job at bc.nz nzpropertyinvestor.co.nz 55

Smart money or risky speculators? Nick Gentle discusses how the market is starting to move, and ponders whether those who buy now will be rubbing their hands with glee in the next few years.

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Insider’s Guide

ver the past week two different stories made their way around the popular news portals. TA headline reading “Housing stock for sale passes a 10-year high on TradeMe” popped up on the Interest.co.nz website, easily gathering the highest number of comments on a story for a week, as cynical users gleefully celebrated the negative headline. Meanwhile on the New Zealand Herald site: “Cheeky speculators return to South Auckland auction rooms” led a story that buyers looking for a quick resale are back in the Auckland property game, with property traders (those who buy looking to renovate and improve before they sell) “lamenting” that they were being priced out of properties. In property investment circles, the Auckland housing market is “the canary in the coalmine “and tends to move first, so I was very interested in the latter story, while being quietly pleased at how many would read the former and decide to go play golf for another year. Another data point: once a week the team iFindProperty hops on a call and chats about a topic of note. This week we did an update on what everyone is seeing in their local markets. With one or two exceptions it was the same story: more investor activity, more offers, faster offers, yields coming back a little on the good deals, more competition. Those wanting a clear signal that the market has reached some kind of a bottom and turned, with a few months of data to back them up (or more consensus from the crowd), have another 12 months or so to wait. Perhaps longer by then be heading into an election. “Picking a bottom” can only work in hindsight, which is why I usually don’t try. My opinion? We are there now, and the rest of the year is buying time.

‘Our government is doing its best to make the previous administration look reasonable in hindsight’ Here are a few reasons and thoughts why I think this, not all of which are a reason on their own for optimism, but pulled together start to paint a picture. • Active investors are back in the market. This much is obvious. My team is hunting deals in multiple areas across New Zealand and the feedback is uniform: more buyers out there. • Inflation is currently under control and well past the “the-world-isending” headlines phase. The “impending doom” feeling of rising interest and food costs has passed. • OCR falls mean most Kiwis feel safer about the future than we did two years ago. • The buying power of our dollar decreased through the recent inflationary period (things cost more dollars than they used to, except houses). At some point the waves of OCR cuts, a more confident employment market, lower interest rates, and a few news headlines will converge, and property will suddenly appear cheap again to a lot of people. Media hype will drive the recovery. • There will be some inflation issues that arise due to the USA’s (idiotic to my mind, but that’s another story) tariff policies, however the world today is vastly different to the overheated economy of two-to-three years ago, which led to a damaging wage-price spiral. Businesses simply won’t simply be able to increase wages and raise prices.

• The public opinion on the government has shifted south. People are sick of cuts, blame and distractions. We want to see some results and progress. The government is going to have to deliver and to deliver it will have to spend. I expect a shift in tone and policy, otherwise I think we will have some new people at the top, followed by a shift in tone and policy. Obviously, this could change. The world is becoming more fractured, current trade practices could embed and cause wider issues for New Zealand, our government is doing its best to make the previous administration look reasonable in hindsight, and insurance of property exposed to climate change risks will not get cheaper. There are serious macro issues still in front of us. But for now, people need houses, and the cost of borrowing has come back to where investing in those houses appears to be more viable than before. As the RBNZ starts to signal where they will finish the current cycle of OCR moves, buyers in turn are concluding that today is about as cheap as property will get, so they might as well get amongst it. Whether the early movers constitute the “smart money”, or risky speculators, I don’t know. I suspect there will be a bit of both at play because you can make, or lose, money in any market. I do know that those who buy well now will be very well set up in two-to-three years. ■

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A complement, not a competitor

Resido aprtments, Mt Wellington, Auckland.

NAOMI WILSON

Leonie Freeman from the Property Council on why build to rent should not be seen as a threat to private property investors.

f you’re a residential property investor, you may have heard about build to rent (BTR) and wondered what it means for your business. With the passing of the Overseas Investment (Build to Rent and Similar Rental Developments) Amendment Bill in late February, some small-scale landlords might worry that large-scale BTR developments could take tenants away from their properties. But the reality is different – BTR is not here to compete with mum-and-dad investors, but rather to complement the rental market by filling critical gaps.

What is build to rent?

BTR developments are large-scale, professionally managed rental properties designed specifically for long-term tenants. Unlike traditional rentals, they often offer secure, extended leases, on-site management, and shared amenities, catering to a different demographic than those renting standalone homes or smaller investment properties. BTR has been a recognised asset class in New Zealand since 2023, but its growth has been slow due to regulatory and investment hurdles. The new Amendment Bill introduces a “large rental development test” to ensure overseas investment can flow into these projects, giving BTR the boost it needs to gain momentum.

Why BTR won’t replace small-scale landlords

There’s a misconception that large BTR developments will saturate the rental market and make life harder for smaller landlords. The truth is, BTR caters to a niche segment of renters who value a specific type of living arrangement – high-density living with on-site amenities that is professionally managed. Many tenants will still prefer the unique benefits of smaller, privately owned rentals, such as standalone homes, townhouses, and smaller apartment complexes, which offer greater flexibility and personal relationships with landlords. Moreover, BTR developments are mostly concentrated in high-demand

Property Council urban centres where housing supply struggles to keep pace with population growth. These areas already experience strong rental demand, meaning additional housing stock is necessary to ease market pressures rather than replace existing rental options.

to the BTR sector by investing in funds that back these large-scale developments. This allows for portfolio diversification and the potential for steady, long-term returns without the hands-on responsibilities of direct property management.

How small investors can benefit

The future of renting in New Zealand

By increasing overall supply and offering renters additional choice, BTR can help create a more balanced market, reducing extreme rent fluctuations and making renting a more attractive long-term option. Smaller landlords should see BTR as a market-improving force that can benefit the wider rental sector and its reputation. BTR’s rise could drive improvements in property management standards across the industry. With BTR setting a high bar for tenant experience, private landlords who adopt professional management practices, responsive maintenance, and tenant-friendly lease structures may find themselves in even higher demand. From an investment perspective, BTR also provides an avenue for those who prefer a more passive approach to residential property investment. Rather than managing individual rental properties, investors can gain exposure

The passing of the overseas investment legislation is a step towards diversifying New Zealand’s rental landscape, ensuring there are quality housing options for different types of tenants. While large-scale BTR developments will play an important role, small-scale investors remain a crucial part of the market. At Property Council, we believe that a well-functioning rental sector includes a mix of BTR and traditional private rentals. With the right policy settings, both can co-exist – as they do in many cities around the world – providing tenants with better housing choices while ensuring that small-scale investors continue to thrive. Rather than being a threat, BTR is an opportunity to strengthen New Zealand’s rental market as a whole. The key is to adapt, stay informed, and focus on delivering the best rental experience possible. ■

About Property Council New Zealand Property Council is the leading advocate for New Zealand’s largest industry – property. We unite more than 10,000 property professionals and 550+ member companies to champion reduced red tape, encourage investment, and support thriving communities. Our diverse membership includes New Zealand’s largest commercial, industrial, and residential property owners, developers, and investors. They come together at more than 70 annual events and through the DevelopU training academy, which provides professional development, exceptional networking opportunities, and access to industry-leading insights. As a not-for-profit organisation, we’re dedicated to building a stronger future for New Zealand’s property sector. Together, shaping cities where communities thrive.

Property Council New Zealand is the one organisation that collectively champions property. We bring together members from all corners of the property ecosystem to advocate for reduced red tape that enables development, encourages investment, and supports our communities to thrive.

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Watercare update

Simon O’Connor, managing director of Auckland’s Sentinel Planning, reports on the issues developers are still facing when it comes to water capacity.

he February/March issue of New Zealand Property Investor magazine outlined the issues Auckland developers were facing when it comes to water capacity. Some developers found that their properties had been “red-zoned” by Watercare – a phrase used by developers to refer to maps presented online that showed areas of constraint in red. Although some of the developments are still getting approved within these “red zones” they are essentially now a “no-go” area; it is a “proceed with extreme caution” scenario. To determine whether a property would be affected by the red zones, several factors seem to be considered, including: • local network capacity (site and immediate street) • catchment capacity (wider area to the nearest pump station) • the stormwater infiltration rate that council uses for each catchment (ie how many cracks are in the network that enable stormwater to enter during wet weather events)

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• number/size of dwellings proposed • general quality of the local network ie has it been adequately maintained • who at Watercare is assessing your application and how much pushback you are willing to put on them. None of this information has been shared publicly to date despite numerous requests for the information.

Slippery situation

We have had cases where Watercare initially said there was no capacity issue, then it claimed local network constraints would prevent any approval, only for an approval confirmation to come a month later after pressure was applied on Watercare. This type of pressure should come from a capable and respected civil engineer. There is an element of randomness in the likelihood of any approval. I know of cases in the Beach Haven area where a request for connections was not approved, and catchment-wide capacity issues were cited, only for a scheme in the same catchment to be

approved just a few weeks later. In that sense, it seems that any approval depends on the opinion of the person at Watercare assessing the application. We have also noted numerous examples where the Watercare engineer seems to attempt to ration connections to developers with comments such as, “we can’t support eight dwellings, but we could support five”. Responses such as this did not factor in the size of the dwellings in question and seemed to imply that the local area capacity was between five and seven dwellings. This type of response is very concerning and would appear to contradict the effects-based planning of the New Zealand system. Watercare has so far failed to acknowledge or accept any responsibility for inadequately planning for the city’s growth. Several developers who bought land, prepared, and lodged viable schemes even before Watercare released its “red zone” areas have now been refused a wastewater connection. Its response to date will simply bankrupt some developers, particularly smaller-scale, “mum-and-dad” types. To me, this represents a failure at the highest levels of Watercare, and the responses and solutions offered so far has been inadequate. It simply have not stepped up or shown genuine leadership on this issue. Watercare’s woes stem from a lack of historical maintenance and investment in infrastructure. Underground infrastructure is often “out of sight and out of mind”, as appears to have led us to the current position. In 2013, Watercare’s total revenue was $482 million and its CAPEX was $289 million, or 60 per cent. Between 2013 and 2019, CAPEX was between 48 per cent and 63 per cent of total revenue. From 2020-2023 it has ranged between 65 per cent to 82 per cent. Though in 2024 only 35 per cent in CAPEX was committed. All whilst total revenue has been increasing by about 10 per cent year-on-year to a 2024 total of $1.085 billion. It ran a pre-tax profit of between 15 per cent and 25 per cent for these years. It is important to note that the central interceptor, which is a part wastewater and part stormwater solution, although a Watercare project, has cost $1.6 billion to date and this

Strategic Planning project alone would have absorbed the lion’s share of the CAPEX budget at the expense of the rest of the city’s projects. Watercare states that some $1.2 billion in value of projects are proposed for the 2025 year.

Origin of story

This matter began last year when Watercare was asked by an elected councillor in mid-October 2024, at my request, to confirm if there were any impending restrictions or moratoriums on future development in Auckland. The very senior management person from Watercare who liaised with the councillor confirmed that there were no such restrictions or matters being considered. The next day, the councillor told me he called Watercare senior management into the mayor’s office with a big “please explain this then,” armed with a number of maps that had been shared on the Subdivision NZ Facebook group and several council further information (S92) letters that we had received, which stated capacity issues and sought for our clients to withdraw their applications. Three weeks later, Watercare started releasing various maps into the public arena and created an online portal shortly after. We have found that areas not even identified as being in Watercare’s “red zones” have now been identified as having capacity issues. This raises questions about the accuracy of all of Watercare’s information. Watercare has cited two main reasons – capacity constraints and wet weather overflows – that they have placed moratoriums on development. However, as an example of the issue, a Watercare memo to the Otara-Papatoetoe Local Board dated February 7, 2023 stated that in the Upper Tamaki River alone between 2015 and 2022, there were 3,401 dry-weather overflows and 762 wetweather overflows in the same period. Wet-weather events are more likely to be severe, but they occur when people are less likely to be using water. Dry weather overflows are generally caused by blockages, such as fat, tree

root infiltration, rubbish, and sanitary items that people put into the network. Wet-weather events generally occur from stormwater infiltration into the network due to poor maintenance of the asset. The topic of capacity and overflows is clearly not new to Watercare, yet the issue has continually not been addressed. There has generally been nothing but radio silence from Veolia, who are contractors who manage water services around Papakura. The communications that our clients have received have been along the lines of “why don’t you chat to other local developers and collectively pay for the local upgrade”. This question has been posed, despite the fact that Veolia collects at least $20,000+GST in infrastructure growth charges per additional dwelling. In effect, it appears to be doubledipping. Veolia’s 30-year agreement with the then Papakura District Council (now Auckland Council), which includes the maintenance of all systems, planning, design, construction, and finance of new infrastructure, finishes in July 2027. There is a real contradiction in its customer-service charter as the infrastructure is owned by Watercare but operated by Veolia. So why is Veolia collecting contributions? What has it spent on network capacity improvement over the last 28 years? The city simply deserves better, and the 20-year optional Veolia extension should not be pursued by Auckland Council, in my opinion.

Going forward

It might be in a tough spot, but one thing that Watercare is doing reasonably well is providing advice via its application processes. However, it has created a significant funding issue for itself in large parts of Auckland where development will not be able to proceed and growth charges collected. Notwithstanding its funding issues, it also has a spending issue with respect to value-for-money outcomes. A 2023 $59 million project has recently been costed at $90 million.

This is a reoccurring theme of expensive procurement that has also been identified in the development contribution conversation as Matthew Gilligan of GRA recent wrote about in this magazine. The online process should involve engaging a competent civil engineer to liaise with Watercare. However, the turnaround of this service is very slow, so it does not work well for anyone looking to do their due diligence on a property. Anecdotally, we are observing red-zone areas (even when Watercare has provided an initial supportive assessment) being purchased for good prices, while developers appear to overpay in areas outside of the red zones. I would estimate that it’s a 15 per cent swing in either direction at the moment. We have noticed a number of scenarios that are grossly unfair to landowners. We have had several situations where a person owns a vacant parcel of land on its own title, and Watercare has refused to grant the permission for one connection despite previously issuing S224c and signing the connection off. They cite capacity issues; however, I would suggest it’s more of a historical accuracy of counting issue for Watercare. We have also had issues in areas such as Milldale where Watercare supported a plan change for thousands of houses to be developed only a few years ago but now cite capacity concerns. It is allowing the resource consent to proceed but is saying that it will evaluate the matter later. This type of logic is very hard to understand; however, there is the magic 4,000 homes capacity on the Hibiscus Coast that Watercare has referred to but won’t provide a running tally. It appears that Milldale is included in this, but existing vacant section owners in the wider Hibiscus Coast area are not. ■ Part two of Simon’s report on Auckland’s water constraints will be printed in the June/July issue of New Zealand Property Investor magazine.

Sentinel Planning is a specialist planning consultancy with a team of experts with deep knowledge, skills, and extensive experience. We deliver exceptional quality and cost-effective solutions, maximising your project’s potential and success through comprehensive understanding of the development process. sentinelplanning.co.nz

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Your Valuer

Maximise value: a property valuer’s guide for investors Eve Prouse, a registered property valuer, shares expert insights on how investors can enhance their property’s value, appeal, and long-term profitability with smart, strategic decisions.

hen designing or upgrading an investment property, functionality should be at the forefront. Small adjustments to the layout can significantly impact desirability. Parking, for instance, is a key factor – tenants will always prefer a property where they can park directly outside rather than having to walk to a shared carpark. For multi-storey homes, convenience is key. A powder room on the main living level eliminates

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the inconvenience of guests having to travel upstairs, making the home more user-friendly and appealing. These thoughtful additions can set a property apart and improve rental demand.

Creating a cohesive look Subdivision developments benefit from uniformity. A common mistake developers make is leaving the finishing touches, such as fences, gates, and decking, to the buyers. This often results in an inconsistent and

unpolished look that ultimately affects the overall value of the development. By ensuring a cohesive approach – such as painting or staining all exterior features in a uniform colour – investors can create a high-quality, attractive aesthetic that enhances property value. Likewise neutral interiors always work best and create a polished overall look.

Stand out

In a crowded market, the properties that offer more than the bare minimum

‘Subdivision developments benefit from uniformity. A common mistake developers make is leaving the finishing touches, such as fences, gates, and decking, to the buyers’ attract the best tenants and command higher rental yields. Heating and cooling are non-negotiables in New Zealand, but investors can go a step further. Installing a heat pump on both floors, rather than just one, ensures year-round comfort, making the home more appealing to tenants.

Timeless design

Investors should prioritise classic design over short-lived trends. While trendy features might seem appealing now, they can quickly date a property and limit its future marketability. A timeless, neutral aesthetic will always appeal to a broader range of buyers and tenants, ensuring long-term value. This also helps when you are looking to sell too.

Understand your target market

Whether designing for investors or owner-occupiers, understanding the target market is crucial. Features such

as a conventional freestanding oven versus a built-in option can make a difference depending on the type of tenant or buyer the property is aimed at. Knowing what appeals to each segment and the different replacement costs allows investors to make smarter decisions that align with market demand and your budget.

Safety and privacy

Security and privacy are highly valued by tenants and buyers alike. Fully gated yards, secured from driveways, provide a safe space for children and pets. Security stays on upperfloor windows add an extra layer of protection, making the property more appealing to safety-conscious renters and purchasers with children. Privacy is also a luxury that enhances a property’s appeal. Thoughtful, minimal maintenance landscaping and well-positioned fencing can create private outdoor spaces that add significant value, both

in terms of tenant satisfaction and resale potential.

Consult a property valuer for maximum return on investment

Investing in property is about more than just purchasing the right location – it’s about maximising every aspect of the investment both short and long term. Working with a registered property valuer can help investors identify the best ways to increase value, whether for short-term rental returns or long-term capital growth. By making strategic upgrades, focusing on functionality, and understanding market expectations, investors can ensure their properties stand out, attract quality tenants, and generate strong returns for years to come. ■ For more of Eve’s expert tips you can follow her on Instagram @ eveprousepropertyvaluations or her website eveprouse.co.nz

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Your Accountant

Hidden costs Mark Withers discusses the tax implications of non-physical changes to land.

o start with, what’s a non-physical change? Let’s illustrate this with an example. Joe has owned it a rental property for five years. He knows the land can be subdivided so he has successfully applied for and been granted a resource consent to divide the single lot into three. The market is filled with uncertainty though, so he cheerfully decides to “sell the dream,” and market the single undivided lot for sale with the benefit of the resource consent. Joe believes there should be no tax under the CB12 and CB13 subdivision provisions as the land has not actually been subdivided. But gaining resource

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consent is an example of a nonphysical change to the land, and there can be tax implications from this and other types of non-physical changes. Section CB14 taxes gains from a disposal of land within ten years of acquisition where at least 20 per cent of the profit that has arisen from a non-physical change in the status of the land. Common examples include changes to a district plan or the likelihood of changes to a district plan, the granting of a resource consent or the likelihood of one being granted, environment court decisions, removal of a heritage protection order or other similar changes. For the section to apply the change

factor must exist at the time the landowner disposes of the land, and it must be contributing to the profit on the disposal. An important quirk of the section is that it applies only when the change factor has contributed to 20 per cent or more of the disposal profit. The courts have suggested that to determine this, the taxpayer should compare the market value of the land before the change occurred to the market value after the change occurred, rather than the actual sale price. Valuations are therefore key to getting evidence that could be used to argue that the section does not apply if the value increase has simply been

‘Valuations are therefore key to getting evidence that could be used to argue that the section does not apply if the value increase has simply been because of market forces over the tenure of ownership’

because of market forces over the tenure of ownership. There is also an interesting abatement provision to gains taxed under CB14 where the amount of taxable income is reduced by 10 per cent for each full year of ownership the taxpayer has had the land, so the taxable income abates to zero after ten years of ownership. There are also some exclusions to CB14. Section CB18 provides a residential

exclusion if the person acquired the land for residential purposes or, interestingly, if the person disposed of the land to another person, who acquired it for residential purposes. So, what the purchaser of the property does with the land impacts the vendors exemption under CB18. Section CB22 also provides a farming exclusion where the person or their family acquired the land for the purpose of an agricultural business and the land was disposed of to

someone continuing to use it in an agricultural business. The logic behind both these exclusions is that if after disposal the use of the land has not changed, then the change that has occurred to the land was essentially not the reason for the sale. So, to round out Joe’s example. If he purchased the land for $1 million and it was worth $1.2 million at the date of disposal without the resource consent, but sold for $1.5 million with the resource consent, then $300 000 of the gain was attributable to the non-physical change, which is more than 20 per cent of the gain. So, all the profit of $500,000 is taxable, but because Joe has owned the land five years the taxable income reduces by 50 per cent, leaving Joe with tax to pay on $250,000 – assuming the purchaser brought the land to develop it (so the residential exclusion would not apply) and it was an investment property rather than Joe’s residence In practise, the subjective nature of CB14 often sees it overlooked by taxpayers and the tax department, but it lurks there in the legislation nonetheless as a not insignificant trap for the unwary. ■

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

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Your Lawyer

Support for build-to-rent Legislative changes to support NZ’s build-to-rent housing sector allow overseas investors to enter the build-to-rent market, as Ed Smithies and Tia Bolton from Wynn Williams’ commercial property team explain.

he New Zealand government has passed the Overseas Investment (Facilitating Build-to-Rent Developments) Amendment Bill to support overseas investment in the build-to-rent (BTR) housing sector. This new piece of legislation aims to increase housing supply and provide more secure, affordable and quality rental options for New Zealanders. Although relatively new in New Zealand, BTR developments are a wellestablished accommodation offering in overseas markets and typically consist of medium-to-large scale rental properties. These developments appeal to tenants by providing stable, long-term, good-quality rental options, which in turn helps to maintain a steady demand for BTR properties. With the new legislation in place, the BTR sector in New Zealand is set for significant growth, benefiting both investors and tenants.

Encouraging overseas investment

A key feature of the new legislation is the introduction of a streamlined consent pathway for foreign investors

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under the Overseas Investments Act 2005 (OIA). Until now, the OIA has restricted growth in the BTR sector, making foreign investment a challenge. The new pathway allows foreign investors to apply for consent to purchase existing BTR developments with at least 20 dwellings, provided they continue leasing these properties as rental properties. By creating a more accessible and attractive investment environment for foreign investors, the consent pathway is expected to play an important role in addressing New Zealand’s housing shortage. The changes also address a significant concern for BTR developers regarding the ability to on-sell their developments. Previously, developers faced challenges due to being confined to the domestic market, which offered a limited number of investors with the capital and expertise to manage the complexity and scale of their developments. With greater certainty around on-selling their properties in a larger market, the Government hopes that developers will have the confidence to invest further in the sector.

Increased housing supply

The enactment of the Bill aligns with the government’s policy of improving housing availability and affordability for New Zealanders and marks a significant milestone in New Zealand’s efforts to address its housing supply issues. By encouraging overseas investment in the BTR sector, the government is taking a proactive approach to increasing the availability of good-quality rental properties. This legislation aims to not only benefit developers and investors but also aims to offer tenants more stable and longterm rental options. If you have any questions about

the Bill and what it may mean for you, please get in touch with the Commercial Property team at Wynn Williams. ■ Ed Smithies is a partner and Tia Bolton is an associate in Wynn Williams’ Commercial Property Team. Disclaimer: The information provided in this article is for general informational purposes only and should not be relied upon as legal advice. Always consult with a qualified lawyer for advice specific to your situation.

‘This legislation aims to not only benefit developers and investors but also aims to offer tenants more stable and long-term rental options’

Wynn Williams is a top law firm with offices in Auckland, Christchurch, and Queenstown, internationally recognised by Chambers and Partners, Legal 500, and NZ Law Awards. wynnwilliams.co.nz

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Commercial Property

Sustainability central In just five years, Central Park has evolved into one of New Zealand’s largest mixed-use commercial precincts through a value-add strategy, with significant growth yet to be unlocked.

n 2018, a newly formed capital partnership between global investment firm KKR and leading New Zealand-based commercial property firm Oyster Property Group acquired the Central Park business park in Auckland, New Zealand’s largest and fastest-growing city. Central Park was an underutilised and outdated business park at the time of purchase. However, the partnership recognised the latent potential in

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its extensive landholding and prime location to maximise diversified income streams and strong tenant covenants. Central Park’s approach was to incorporate sustainability into the precinct followed a four-stage strategy designed to unlock its value through integrating key sustainability initiatives into its DNA. The aim has always been to meet and exceed industry best practices; demonstrate sustainability leadership

beyond legislative requirements; ensure resilience while maintaining its sustainability credentials in a changing landscape; and create attract and retain high-value tenants. Seeking to expand its sustainability journey an ESG strategy was created for Central Park with the objective to develop a “green-print” for the precinct’s future development. Central Park’s approach to sustainability remains adaptable,

Our Sustainability Framework Our Sustainability Framework The overarching sustainability framework builds on the following four

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Reporting & Disclosure Central Park conducts sustainability-related reporting and disclosure in accordance with legislative requirements and industry best practice.

nzpropertyinvestor.co.nz 69

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DIY landlord vs property manager Debbie Roberts from Property Apprentice on how to decide who is best to manage your properties.

eing a property investor can be a rewarding experience, with mortgage rates reducing and signs of a recovery in the property market on the horizon, especially since we are still in a buyers’ market. But it can also come with its fair share of challenges. One of the most important decisions you’ll make (after purchasing a property) is whether to manage your properties yourself or

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hire a professional property manager. It is important to remember that although there are many self-managing landlords who will tell you that you will never find a property manager that will look after the property as well as you will, there are equally as many property investors who will tell you that life is way too short to manage your own rentals. So how can you decide which is the best option for you? Let’s take a look at some of the pros and cons for each.

DIY landlord Pros

• You have more control over your properties and how they’re managed. • You can save money on property management fees, which helps with the cash flow • You can build relationships with your tenants (NB: you should always maintain a professional relationship, not strive to be their friend) • There are several excellent platforms designed specifically to make things easier for DIY landlords e.g. KeyHook.

Property 101

‘One of the most important decisions you’ll make (after purchasing a property) is whether to manage your properties yourself or hire a professional property manager’

• You could be held liable for any mistakes you make, and the amount that you may have to pay the tenant for those mistakes could range from (for example) $350 for failing to give a receipt for rent, up to $7,200 for failing to meet healthy homes standards. • You may have difficulty finding reliable contractors. • You may need to take time off work for property inspections, tenancy tribunal hearings etc. • If you are going overseas for more than 21 days, you need to appoint a local property manager in your absence. • Some landlord protection insurance policies prohibit self-management.

Professional property manager Pros Cons

• You’re responsible for all aspects of property management, including arranging repairs and maintenance, advertising, tenant selection, property inspections, managing rent arrears, and attending tenancy tribunal hearings if required. • You may not have the time or expertise to manage your properties effectively.

• They can handle all aspects of property management on your behalf, saving you time and potentially money. • They can help you stay compliant with the Tenancy Act. • Can be a huge advantage if your rental property is not close to where you live. • They often have a good network of reliable contractors.

Cons

• You’ll have to pay property management fees, which can range from approximately 6 per cent up to 11 per cent (or more) of the rent received, depending on the property and type of tenancy (although this is tax deductible as an expense). • You may have less control over your properties, unless you are clear with your property manager about how much control you need/want in certain situations eg you might want to attend at least one of the property inspections each year. • Property management is not a regulated industry, so finding a good property manager can feel a bit like “trial and error” unless you can find a good recommendation from other property investors.

In summary

Only you can decide what is best for you and your tenant, but property management might not be as easy as you think. I recommend that you either become an excellent property manager yourself and ensure that you thoroughly understand your legal requirements (a good place to start is the NZPIF RentSkills programme, which is free for full members of any local property investors’ association) or pay a professional to do it for you. ■

Property Apprentice is the market leader in property investment advice. It is run by experienced coaches and financial advisers to give you the best support possible, to help you realise your goal of financial freedom. Visit propertyapprentice.co.nz, email info@propertyapprentice.co.nz or call 09 575 7736.

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A backup, not a plan Having a good relationship with tenants can ensure that issues are addressed before getting to the Tenancy Tribunal stage, writes Shadi Salehpour.

ack in the day – and I say “back in the day” because, really, with the way things have advanced, even a few years ago feels like another era – I’d block out a good hour or two of my day for mediation. I’d have an actual calculator in hand, sitting at my desk, waiting for the office phone to ring. I haven’t seen or used one of those phones in at least

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four years. Why be tied to an office when the world is now attached to you wherever you go? Pen and paper ready, I’d sometimes lock myself in the office so not to be distracted. Everyone knew when there was a mediation happening for rent arrears – and man, that was serious stuff! It felt like going into a mini war. You had to be prepared. Fast forward to just two weeks

ago – I took a mediation call for rent arrears while driving to another appointment. The mediator called me, then called the tenant, and before we even hung up from the three-way call, the order was already sitting in my inbox. Done and dusted. The process of mediation and handling rent arrears is much easier now. Digital communication makes things faster and more efficient, and

Your Property Manager

with the systems we use, we can pull up ledgers within seconds – there’s really no room for error. Whilst there is advancement on some aspects, what’s still frustrating, though, is the time it takes to get to that point. And that’s why I prefer not to rely on mediation or court dates as my first option. If there’s one person who knows the tenant’s situation and can work with them, it’s me as their property manager – or you, as their landlord. We have the relationship, and that’s worth tapping into when it comes to conflict resolution. Unpaid rent falls into this unpleasant category and has the potential to make or break a landlord. – 20 December: Tenant missed rent. A reminder text was sent. A phone call was made. No answer. – Day three of arrears: A 14-day notice to remedy was issued under Section 56 of the Residential Tenancies Act. No response. – 30 December: We lodged an application to the Tenancy Tribunal. By then, the tenant was two weeks in arrears. – 14 February: Mediation was eight weeks after our application and nine weeks in arrears. At $680 per week rent, that’s a lot of money building up. Even applying four weeks’ bond to the arrears, we’d still come up short. We could have pursued termination under Section 55(1)(aa) once they were 21 days in arrears. But I don’t think my landlords’ insurers would be too impressed if we sat on our hands for that long. I have read some policies where I am expected to visit the property to make sure the tenant is still in place. There is some good news, by the time mediation came around, the arrears were down to just $320 –

‘If there’s one person who knows the tenant’s situation and can work with them, it’s me as their property manager – or you, as their landlord’

instead of potentially over $6000. That’s because we pursued the arrears and worked with the tenant outside of the Tribunal process, while still keeping the courts as our backup. I later found out the tenant had gone overseas getting a tan and visiting family – no wonder I couldn’t get hold of them straight away. Otherwise, I would have taken advantage of FastTrack mediation. That’s where you come to an agreement with the tenant, and Tenancy Services simply puts it in an official order. Even this process could use improvement. In another FastTrack mediation, where the tenant and I had already agreed to the terms of arrears, the mediator took what should have been a five-minute call and dragged it out to 15. She was walking on eggshells, over-explaining, and repeating herself multiple times.

How it could be better

More effective mediators would make the process better. Mediators should: – trust the agreement and ledgers – if both parties are in agreement and understand the terms, the mediator should focus on documenting it clearly and swiftly – no need for lengthy explanations

– s kip the over-explaining – less “walking on eggshells,” more professionalism and efficiency. A quick confirmation, a run-through of the key terms to ensure clarity, and then wrap it up – quicker scheduling of mediation and hearing dates, with flexibility to contact tenants outside of standard working hours. Some tenants are unable to take calls during business hours, and this can delay the process unnecessarily. And again (because it can’t be said enough): the most important thing is having a good relationship with your tenants. Apply the law with respect and professionalism. And for those feeling the weight of these challenges – get yourself a property manager. For the rest of you, I’ll leave you on a happy note: there are positive signs on the horizon. February showed some encouraging trends across the New Zealand property market, with increases in sales counts and more activity at auctions. While it’s been a tough climate for landlords recently, this could signal the start of renewed confidence and momentum for investors. ■

Let’s Rent is an award-winning property management company in Auckland dedicated to providing exceptional service for landlords, property investors and tenants. Founded on the principles of integrity, personalised service, and attention to detail, Let’s Rent stands out for its innovative approach to property management. letsrent.co.nz

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Protecting the vulnerable

have been travelling up and down the country talking about the new changes to the RTA. And let me tell you this, nothing gets landlords and property managers more fired up than the two-day withdrawal pathway for victims of family violence. Let’s start with the basics. Under Section 56B, a tenant who is a victim of family violence can withdraw from a tenancy with two days’ written notice accompanied by an appropriate form of qualifying evidence. For the first two weeks following the withdrawal, rent is proportionally reduced in line with the percentage reduction in total number of tenants

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on the agreement. If one out of two tenants leaves, rent drops by 50 per cent; one out of three, 33.33 per cent; one out of four, 25 per cent. You get the maths. The right to withdraw also extends to tenants who are not direct victims themselves but have a dependent (such as a child) who is. The system is designed to enable victims to remove themselves from a dangerous situation as quickly as possible. And this is where some landlords and property managers start grinding their teeth. “What if someone cheats the system?”

“How do we know the claim is real?” “Shouldn’t we be able to challenge dodgy withdrawals?” “Why should I have to house the perpetrator?” Parliament has made its position clear: the interests of family violence victims are paramount. In most cases, their right to withdraw trumps the interests of everyone else in the tenancy, including the landlord.

A low bar

The withdrawal process is deliberately low bar – Tenancy Tribunal has no jurisdiction to determine the tenant’s victimhood nor can it examine the

MIODRAG IGNJATOVIC | ISTOCK

Tenancy legislation around family violence is aimed at getting people at risk out of bad situations, fast. Sarina Gibbon, general manager of Auckland Property Investor Association, explores the issue.

Sarina’s View

‘Family violence withdrawal isn’t about fairness between tenants and landlords – it’s about ensuring victims have a way out, fast’

feat), you’re left with a resentful and resourceful tenant who has already proven they’ll do anything to get out. That’s not someone you want occupying the property. Instead of seeing Section 56B as a threat, turn it into an opportunity. A withdrawal – even one that raises eyebrows – is a red flag. Something serious is happening behind closed doors, and ignoring it could lead to bigger problems: rent arrears, property damage, abandonment, or worse. In most cases, you are better off letting the tenant go before the situation spirals further.

Business continuity

validity of the qualifying evidence. As much as you might want to play detective, let me be blunt: it’s not worth your time. Your primary purpose as a tenancy manager (be you a property manager or a landlord) is to ensure business continuity. What comes after that is custodianship of your tenant’s welfare (within the RTA framework and your own moral compass). Fixating on whether a withdrawal is “genuine” is a fool’s errand. Even if you suspect a tenant is gaming the system, what’s your endgame? If you somehow manage to invalidate a fraudulent notice (a near-impossible

Then there’s the business continuity piece. I can see how landlords can get hung up on the temporary rent reduction. There’s something to be said about having socialised solutions for a social problem: let the tax system fund the rent shortfall, not the landlord. But I digress. Fixating on contorting the rental arrangement so that you are somehow compensated by the tenant(s) is futile. Instead, focus your energy on optimising your rent levels at all times, have robust loss of rent cover under your landlord insurance and build an ample cash buffer into your rental business. This will go a long way in helping you navigate the stressful situation of sudden loss of rent. Another common concern is: what if the victim returns? We know it’s not uncommon for abuse victims to go back to their abuser, and some landlords worry that they’ll end up with repeated withdrawal notices. The reality is, even if the victim

returns, they are likely doing so as an occupant, not as a named tenant. That means Section 56B will not apply to them in future withdrawal attempts. To be clear, I’m not saying we shouldn’t support victims leaving again – but their departure as an occupant has no bearing on the rent you receive. If there’s no Section 56B application, there’s no rent reduction.

A way out

At the end of the day, family violence withdrawal isn’t about fairness between tenants and landlords – it’s about ensuring victims have a way out, fast. And the law is structured, quite rightly, to make that happen. The best thing landlords and property managers can do is shift focus from resisting Section 56B to mitigating its financial impact and ensuring properties remain stable and tenanted. Look, I get it. Change is hard. For most of us, change represents disruption and disruption, by its own nature, is uncertain and unsettling. To the extent you are able, limit your insecurity of the unknown. Because disruption brings opportunities but you’ve got to look for them. Shifts in tenancy law, difficult transitions, and even problematic tenant departures can all create unexpected advantages if you lean into them strategically. This isn’t the first major shift in tenancy law, and it won’t be the last. But like all changes, it’s best handled with pragmatism over paranoia. Focus on what you can control: keeping your business running smoothly, protecting your owners’ interests, and – yes – recognising that sometimes, it is best to just let the tenant go. ■

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Lessons in property

Kathy Faulkner meets a teacher who bought her parents’ home to get on the investment ladder.

40-year-old Whakatane teacher had a dream to be financially independent. So, she bought her parent’s home to help build her equity to buy her first investment. She had no idea it would lead to a full-blown portfolio … and financial freedom. Here’s how Te Ahuru got started in property investment. Like many investors, Te Ahuru says her journey started with a mix of curiosity, opportunity, and a bit of luck. She wasn’t from a wealthy family. But she saw people working into their 70s and she didn’t want that for herself. When she bought her first investment, she barely understood the implications of being a homeowner. All she knew was that owning an asset – that could appreciate in value

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while generating rental income – was a smart financial move. That first property led to another, then another. Before long, Te Ahuru was deep into the world of property investment.

Challenges along the way

It’s easy to look at an investor with multiple properties and assume they had a smooth ride. That’s far from the truth. Every investor faces hurdles, and Te Ahuru was no exception. One of her biggest challenges was finding the money to invest. In the early days, securing a mortgage was tough. Banks scrutinised every detail, and she had to prove she was a low-risk borrower. Then there were issues with tenants,

A Whakatane teacher has found financial freedom through property investment.

unexpected maintenance costs, and market downturns that tested her resolve. Looking back, Te Ahuru says her biggest mistake was rushing into a purchase without doing enough due diligence. There was a property she bought early on because it seemed like a great deal. The numbers looked good, but Te Ahuru had failed to consider the location’s long-term growth potential. “Over time, I realised that while rental yield was decent, capital growth was slow.”

Your Review

things to new investors. Learn about different strategies – whether it’s buy-and-hold, flipping, or rentvesting. Listen to experienced investors, but do your own research. Secondly, understand your risk tolerance. Property investment isn’t a get-rich-quick scheme. It takes time, patience, and resilience. Make sure you have a buffer for unexpected expenses and don’t overextend yourself financially. Finally, think long-term. Property is a game of decades, not months. The market will have ups and downs, but if you buy in good locations and hold, you’re more likely to see strong returns over time.

What’s next

“I learned a valuable lesson: never buy based solely on price,” she says. It’s important to research the market, understand the area’s future prospects, and think about who your future tenants will be. “That experience made me a more strategic investor,” she says. The property she “almost didn’t buy” turned out to be her best decision. It was a small apartment in an area that was on the verge of gentrification, she explains. At the time, some people were sceptical about its potential.

But she saw signs of growth – new infrastructure projects, population increases, and a shift in demographics. Today, the rental demand has remained high, and its value has appreciated significantly.

Before you start

For those considering property investment, Te Ahuru says her biggestpiece of advice is to start with education. “Don’t jump in blindly.” She recommends a number of

These days, Te Ahuru’s portfolio works for her, rather than the other way around. Her focus is now improving what she already has. For example, refinancing where needed, adding value through renovations. She’s also passionate about helping new investors through mentoring, writing, or simply sharing her experiences. She believes knowledgesharing is key to building a strong investment community. Property investment changed Te Ahuru’s life. She has financial security, options, and the ability to live life on her own terms. “It hasn’t always been easy, but every challenge has been a lesson that’s helped me grow”, she says. Te Ahuru’s experience might resonate with some potential investors. Maybe you’re finding it hard to get started – financially or otherwise. If you want to discuss your option, the next step is to book a Portfolio Planning Session with us here at Opes Partners, opespartners.co.nz ■

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

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NZPIF Spotlight

Advocacy membership A new form of NZPIF membership can help support even more investors around New Zealand.

ew Zealand’s property investment landscape is constantly evolving, with new regulations, political shifts, and economic pressures shaping the industry. For property investors, staying informed and having a voice in these changes is more important than ever. That’s why the NZ Property Investors Federation (NZPIF) has introduced “advocacy membership”, a new way for investors to support fair policies and ensure their interests are heard.

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Why advocacy membership?

Not every investor needs the networking opportunities or supplier discounts provided by a local property investors association (PIA). Some investors are no longer actively growing their portfolios, but still care about the future of property investment in New Zealand. Others want to ensure they are informed about key legislative changes without needing to attend local events. Advocacy membership is designed

for those who want to support political and media advocacy efforts without the additional services of a PIA. This membership focuses purely on championing property investors’ interests at the highest levels, engaging with politicians, the media, and key decision-makers to push for fair policies.

What advocacy members receive

By joining as an advocacy member, you’ll be part of a united effort to

UNITE FOR LANDLORD RIGHTS! With the election just 18 months away and the polls tightening, a change in government could mean a return to harsh anti‘NZ IS Property landlord policies. NOW THE TIMEInvestors TO ACT. Federation (NZPIF)

has introduced “advocacy membership”, a NZPIF is already advocating in Wellington, but to truly make new way forof investors to support fair policies an impact, we need the power a united voice. The more members we have, theand moreensure persuasive our interests case becomes. their are heard’ Strength in numbers can make all the difference. Together, we can protect property investors and push for fairer policies. • Opportunities to have your say: can be persuaded to reconsider Participate in surveys and provide damaging proposals. feedbackEfforts: on draft submissions, Support Advocacy Stand together in pushing ensuring your perspective for fair policies isthat protect property investors. considered in NZPIF’s NZPIF is already actively engaging advocacy work. with government officials, but to truly Stay Informed: Receive the monthly influence policy, we need a stronger Advocacy Update and weekly media Advocacy membership does not collective voice. The more members include supplier discounts. Those we have, the more persuasive our case updates on key issues. remain available through local PIA becomes. There are over 300,000 Have Your memberships, Say: Participate in but this provides a property investors in New Zealand, yet surveys anddirect provide feedback way to support the advocacy too many remain silent when policies that benefits all property investors. that affect them are being decided. on issues affecting the industry. Imagine the impact if even a fraction of those investors joined The next 18 months are critical for forces. Politicians listen when they property investors. The 2026 election know a large voting block is at stake. is approaching, and the political By joining NZPIF as an advocacy ← Sign up for Advocacy Membership today. landscape is shifting. With the polls member, you strengthen the voice of on a knife-edge, a change in property investors nationwide and government could bring back harsh ensure your concerns are heard at the Scan the QR code anti-landlord policies. highest levels. above to join. If history repeats itself, we could see the return of interest deductibility restrictions, making New Zealand the Now is the time to act. Hoping for influence policy and protect property only country where landlords cannot the best is not a strategy. Advocacy investment in New Zealand. Benefits deduct legitimate interest expenses. membership is your chance to be include the following. Even more concerning, discussions part of the fight for fair policies and a • Monthly advocacy Update: Stay about a targeted capital gains tax or stronger property investment industry. informed with exclusive insights wealth tax on property investors are Whether you’re an active investor, into NZPIF’s advocacy efforts, already gaining traction. a former investor who still cares about policy discussions, and government These policies, if implemented, the industry, or simply someone who interactions. will significantly impact the believes in fair treatment for landlords, • Weekly media updates: Get timely financial viability of property your support matters. summaries of property-related news investment. But policies are not Let’s stand together to protect and political developments that set in stone. With strong advocacy and grow opportunities for property could impact your investments. and early intervention, politicians investors in New Zealand. ■

Why Join?

Strength in numbers

Why now?

Join today

THANK YOU FOR THE CONTINUING SUPPORT FROM NZPIF BUSINESS PARTNERS

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NORTHLAND

NZPIF AROUND THE REGIONS

NEXT MEETING: Wednesday, April 30 @ 7pm TOPIC: Contact northland@nzpif.org.nz for more information about this meeting

NZPIF - AROUND THE REGIONS

TAURANGA

NEXT MEETING: Monday, April 14, 2025 @ 7pm at Tauranga Club, Level 5, Devonport Towers, 72 Devonport Road TOPIC: Ins and outs of trusts with Ingham Mora - all your questions answered

Monthly round-up of events and meetings at our property investor associations. AUCKLAND

NEXT MEETING: Go to www.apia.org.nz/ events for details on upcoming meetings. APIA hosts 100 events and presentations for its members each year.

ROTORUA

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NEXT MEETING: Wednesday, April 2, 2025 @ 7:30pm at SALT Auditorium 35 Matipo Street, Palmerston North TOPIC: Nicole Lewis – “queen of property”. How to buy property when you are stuck for cash.

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Contributors Rental & Sales Statistics Apr/May 2025

trusted data

RENTAL & SALES STATISTICS

Apr/May 2025

84 NZ PROPERTY INVESTOR

Rental & Sales Statistics Apr/May 2025

trusted data

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.

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.

Estimate an increase in rent from a renovation

Estimate rental demand and how long it will take to find a tenant

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.

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.

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.

RENTAL AREA

NORTHLAND Far North - Rural Far North Far North - Ahipara/Kaitaia Far North - Mangonui/Kaeo Far North - Bay Of Islands Far North - Bay Of Islands Far North - Bay Of Islands Far North - Kaikohe Whangarei - North West Rural Whangarei - Kamo/ Tikipunga/Kensington Whangarei - Kamo/ Tikipunga/Kensington Whangarei - Whangarei Central/Otangarei Whangarei - Whangarei Central/Otangarei Whangarei - Whangarei Central/Otangarei Whangarei - Ngunguru/ Onerahi/Whangarei Heads/ Waipu Whangarei - Ngunguru/ Onerahi/Whangarei Heads/ Waipu Whangarei - Morningside/ Raumanga/Maunu Kaipara - Entire District Rodney - Wellsford/ Warkworth/Helensville Rodney - Wellsford/ Warkworth/Helensville

MEDIAN RENT MEDIAN VALUE YIELD RENT NO. OF NO. OF TYPE BEDS PROPERTIES 1 YR 5 YR 1 YR 5 YR 1 YR 5 YR BONDS QUARTILE CURRENT CHANGE RANGE CHANGE CURRENT CHANGE CHANGE CURRENT CHANGE CHANGE

Hse Hse Hse Hse Hse Hse Hse

3 3 3 2 3 4 3

2278 1299 1457 768 3083 1555 724

12 12 9 15 24 6 12

400 - 565 550 - 650 425 - 650 498 - 608 538 - 691 760 - 900 475 - 500

540 560 600 580 655 875 500

0.0 1.8 27.7 16.0 5.6 16.7 0.0

68.8 60.0 69.0 73.1 35.1 68.3 44.9

473300 451650 700800 772750 871050 1054650 379700

-3.7 -6.3 -4.0 -2.9 -5.4 -6.8 5.2

46.9 42.8 40.9 45.0 29.8 25.6 67.3

5.9 6.4 4.5 3.9 3.9 4.3 6.8

3.9 8.7 33.0 19.5 11.6 25.1 -4.9

14.9 12.1 20.0 19.4 4.1 34.0 -13.4

Hse

1252

530 - 635

590

7.3

37.2

785900

-12.8

44.3

3.9

23.0

-4.9

Hse

3891

580 - 650

600

0.0

33.3

626000

-2.4

21.3

5.0

2.5

9.9

Hse

1494

650 - 700

680

4.6

27.1

770650

0.6

22.8

4.6

4.0

3.5

Flat

590

0.0

474000

-0.3

25.9

0.0

Hse

671

500 - 560

550

13.4

46.7

531850

-1.8

26.8

5.4

15.5

15.7

Hse

1849

583 - 629

600

0.0

33.3

617800

-1.0

21.9

5.1

1.0

9.4

Hse

4521

560 - 650

620

0.3

29.2

887850

2.7

50.3

3.6

-2.3

-14.1

Hse

2133

650 - 780

700

0.0

27.3

1032950

-4.2

23.8

3.5

4.4

2.8

Hse

2002

568 - 629

588

-1.7

40.0

538850

-3.5

24.4

5.7

1.9

12.5

Hse

3503

475 - 695

625

9.6

64.5

764400

-6.1

38.3

4.3

16.8

18.9

Hse

1220

500 - 550

523

0.6

18.9

922400

-3.1

15.9

2.9

3.8

2.5

Hse

4685

560 - 681

628

4.7

25.6

1112350

-6.3

28.6

2.9

11.7

-2.3

nzpropertyinvestor.co.nz 83 85

Rental & Sales Statistics Apr/May 2025 RENTAL AREA Rodney - Wellsford/ Warkworth/Helensville Rodney - Orewa/ Whangaparaoa Rodney - Orewa/ Whangaparaoa Rodney - Orewa/ Whangaparaoa Rodney - Orewa/ Whangaparaoa Rodney - Rewiti/Kumeu/ Riverhead Rodney - Gulf Harbour Rodney - Gulf Harbour

trusted data

MEDIAN RENT MEDIAN VALUE YIELD RENT NO. OF NO. OF TYPE BEDS PROPERTIES 1 YR 5 YR 1 YR 5 YR 1 YR 5 YR BONDS QUARTILE CURRENT CHANGE RANGE CHANGE CURRENT CHANGE CHANGE CURRENT CHANGE CHANGE

Hse

2744

680 - 790

750

-6.3

27.1

1613450

5.5

40.6

2.4

-11.2

-9.6

Flat

880

528 - 607

558

3.3

29.8

830250

-3.8

19.9

3.5

7.4

8.2

Hse

1344

580 - 650

610

6.1

28.4

930300

-8.9

18.2

3.4

16.4

8.7

Hse

6260

102

680 - 774

715

2.9

21.2

1069750

-2.5

23.7

3.5

5.6

-2.0

Hse

5430

818 - 900

865

1.2

15.3

1381200

0.2

27.1

3.3

0.9

-9.3

Hse

1720

800 - 915

860

6.2

17.8

1369550

-1.9

22.8

3.3

8.2

-4.0

Hse Hse

3 4

926 1163

12 9

680 - 780 690 - 800

700 720

2.9 -4.0

30.8 9.1

1016300 1116500

-0.1 -4.1

20.5 16.0

3.6 3.4

3.0 0.1

8.6 -6.0

Hse Hse

3 4

1842 1626

24 12

675 - 750 790 - 885

700 800

-6.7 -11.1

13.8 6.7

1152600 1326950

-12.6 -15.3

12.8 17.7

3.2 3.1

6.8 5.0

0.9 -9.4

Flat

614

520 - 599

570

-1.7

6.5

1066500

1.3

13.9

2.8

-3.0

-6.4

Hse

1197

668 - 900

800

-2.4

17.6

1736950

-4.2

24.7

2.4

1.9

-5.7

Hse

1641

868 - 1138

1050

-7.5

13.5

2233650

-6.3

11.0

2.4

-1.3

2.3

Hse Hse

3 4

478 903

15 12

640 - 780 800 - 900

700 840

-3.8 -3.4

5.7 15.1

1125800 1438950

0.0 1.6

19.3 18.3

3.2 3.0

-3.9 -5.0

-11.3 -2.7

Hse

1641

650 - 740

700

0.7

17.6

1061300

-3.8

14.9

3.4

4.7

2.4

Hse

774

649 - 753

728

8.2

25.5

1211300

-6.7

12.4

3.1

15.9

11.7

Hse

1118

758 - 873

815

14.0

17.3

1549650

1.5

18.1

2.7

12.3

-0.7

AUCKLAND

North Shore - Torbay North Shore - Torbay North Shore - East Coast Bays North Shore - East Coast Bays North Shore - East Coast Bays North Shore - Albany North Shore - Albany North Shore - Wairau Park/ Glenfield North North Shore - Browns Bay North Shore - Rothesay/ Murrays/Mairangi Bays North Shore - Rothesay/ Murrays/Mairangi Bays North Shore - Takapuna North Shore - Takapuna North Shore - Takapuna North Shore - Devonport North Shore - Devonport North Shore - North Harbour/Pinehill North Shore - North Harbour/Pinehill North Shore - Greenhithe/ Unsworth Heights North Shore - Sunnynook/ Westlake North Shore - Sunnynook/ Westlake North Shore - Sunnynook/ Westlake North Shore - Sunnynook/ Westlake North Shore - Glendhu/ Glenfield North Shore - Glendhu/ Glenfield North Shore - Glendhu/ Glenfield North Shore - Hillcrest/ Northcote North Shore - Hillcrest/ Northcote North Shore - Hillcrest/ Northcote North Shore - Hillcrest/ Northcote North Shore - Beachhaven/ Birkdale North Shore - Beachhaven/ Birkdale North Shore - Chatswood/ Birkenhead/Northcote Point

Hse

1911

823 - 1050

945

-3.6

22.4

1875000

8.9

24.8

2.6

-11.5

-1.9

Flat Hse Hse Flat Hse

2 2 3 2 3

760 168 1096 514 1485

6 12 33 0 21

586 - 658 613 - 788 800 - 934 765 - 1000

635 690 850 0 850

0.0 12.6 6.5 0.0 -5.0

16.5 24.3 13.3 0.0 9.0

961350 1593850 1931750 1028700 1989550

-18.3 -5.9 6.3 -9.5 -9.0

11.0 25.8 28.7 11.2 19.7

3.4 2.3 2.3 0.0 2.2

0.0 19.6 0.2 0.0 4.4

4.9 -1.1 -12.0 0.0 -9.0

Hse

895

725 - 820

790

-1.3

16.2

1344200

0.4

26.8

3.1

-1.6

-8.4

Hse

1319

913 - 980

950

4.4

20.3

1576750

2.4

18.3

3.1

2.0

1.6

Hse

1152

648 - 768

720

4.7

10.8

1245350

2.0

20.6

3.0

2.6

-8.1

Flat

636

498 - 610

530

-11.7

3.9

866600

-7.8

9.1

3.2

-4.2

-4.7

Hse

215

560 - 648

600

-3.2

14.3

1217500

0.3

20.8

2.6

-3.5

-5.4

Hse

2119

675 - 768

720

2.9

14.3

1339050

-3.2

25.9

2.8

6.3

-9.2

Hse

1119

783 - 956

850

-2.3

13.3

1538650

-1.2

20.7

2.9

-1.1

-6.1

Flat

582

0.0

739900

-2.7

9.5

0.0

Hse

230

580 - 633

598

2.0

19.6

960400

-7.6

25.0

3.2

10.5

-4.3

Hse

2698

663 - 708

690

0.0

19.0

1049550

-0.5

22.6

3.4

0.5

-2.9

Flat

651

0.0

820600

-2.2

11.4

0.0

Hse

176

554 - 620

600

1.7

15.4

1088850

-4.9

17.9

2.9

7.0

-2.1

Hse

1708

690 - 770

748

6.9

21.6

1320750

1.8

23.6

2.9

5.0

-1.6

Hse

1225

745 - 961

883

2.7

14.4

1551250

-0.9

15.9

3.0

3.6

-1.3

Hse

415

580 - 640

625

13.6

17.5

944650

-3.2

20.1

3.4

17.3

-2.2

Hse

3361

640 - 730

680

-1.9

17.2

1041850

-1.3

21.5

3.4

-0.6

-3.5

Flat

450

0.0

784450

-7.1

9.7

0.0

NZPROPERTY PROPERTYINVESTOR INVESTOR 86 NZ 84

Rental & Sales Statistics Apr/May 2025 RENTAL AREA North Shore - Chatswood/ Birkenhead/Northcote Point North Shore - Chatswood/ Birkenhead/Northcote Point North Shore - Chatswood/ Birkenhead/Northcote Point Waitakere - West Harbour Waitakere - West Harbour Waitakere - Massey/Royal Heights Waitakere - Massey/Royal Heights Waitakere - Te Atatu Peninsula Waitakere - Te Atatu Waitakere - Ranui Waitakere - Henderson Waitakere - Henderson Waitakere - Henderson Waitakere - Henderson Waitakere - Glendene Waitakere - Kelston Waitakere - Glen Eden Waitakere - Titirangi Waitakere - Titirangi Waitakere - New Lynn Waitakere - New Lynn Waitakere - New Lynn Waitakere - Western Beaches/Rural Waitakere - Western Beaches/Rural Auckland - Central East Auckland - Central East Auckland - Parnell Auckland - Parnell Auckland - Parnell Auckland - Herne Bay/St Marys Auckland - Ponsonby/ Freemans Bay Auckland - Ponsonby/ Freemans Bay Auckland - Ponsonby/ Freemans Bay Auckland - Pt Chevalier Auckland - Grey Lynn/ Arch Hill Auckland - Grey Lynn/ Arch Hill Auckland - Grey Lynn/ Arch Hill Auckland - Westmere/ Surrey Crescent Auckland - Mt Eden Auckland - Mt Eden Auckland - Mt Eden Auckland - Waterview/ Avondale Heights Auckland - Waterview/ Avondale Heights

trusted data

MEDIAN RENT MEDIAN VALUE YIELD RENT NO. OF NO. OF TYPE BEDS PROPERTIES 1 YR 5 YR 1 YR 5 YR 1 YR 5 YR BONDS QUARTILE CURRENT CHANGE RANGE CHANGE CURRENT CHANGE CHANGE CURRENT CHANGE CHANGE

Hse

249

603 - 650

635

14.4

24.5

1209400

-3.7

17.3

2.7

18.8

6.2

Hse

1853

680 - 888

740

-7.3

7.7

1391650

-1.2

19.6

2.8

-6.2

-9.9

Hse

1660

806 - 973

865

-3.7

8.1

1577400

-6.9

14.3

2.9

3.5

-5.4

Hse Hse

3 4

2194 2391

42 36

665 - 755 780 - 855

730 800

5.8 -5.9

17.7 0.4

1161350 1373950

-1.0 -3.7

18.2 13.8

3.3 3.0

6.8 -2.3

-0.4 -11.8

Hse

3241

600 - 696

643

-1.1

21.3

895750

-7.2

20.5

3.7

6.6

0.7

Hse

1238

738 - 835

763

1.7

13.9

1009900

-4.8

26.7

3.9

6.8

-10.1

Hse

1271

635 - 690

650

0.0

13.0

1045650

-4.2

9.7

3.2

4.4

3.0

Hse Hse Flat Hse Hse Hse Hse Hse Hse Hse Hse Flat Hse Hse

3 3 2 2 3 4 3 3 3 2 3 2 2 3

827 1672 836 629 4664 2435 1714 1619 2579 668 3984 968 468 1999

12 24 0 51 84 21 24 21 39 15 30 0 30 51

630 - 680 610 - 680 543 - 590 620 - 680 696 - 760 630 - 700 600 - 669 598 - 650 591 - 600 619 - 758 520 - 600 620 - 696

650 650 0 575 650 748 660 623 633 600 690 0 560 650

-4.4 0.0 0.0 -2.5 -3.0 -6.5 1.5 -4.2 -2.6 5.3 -2.1 0.0 -3.4 -3.0

16.7 28.7 0.0 25.0 20.4 18.7 22.2 18.7 19.4 25.0 15.0 0.0 23.1 15.0

954300 800500 632600 807800 939900 1142350 881650 916050 886300 938450 1072950 615950 907900 996250

-4.0 -3.4 -1.3 1.3 -1.9 0.2 -5.3 0.5 1.4 -2.7 4.0 -4.4 -2.0 -2.4

14.0 15.5 11.8 20.1 23.7 20.5 15.5 19.1 17.1 32.2 28.3 4.5 19.2 13.7

3.5 4.2 0.0 3.7 3.6 3.4 3.9 3.5 3.7 3.3 3.3 0.0 3.2 3.4

-0.5 3.5 0.0 -3.8 -1.1 -6.7 7.3 -4.6 -4.0 8.1 -5.9 0.0 -1.5 -0.6

2.3 11.5 0.0 4.1 -2.7 -1.5 5.8 -0.4 2.0 -5.4 -10.4 0.0 3.3 1.2

Hse

530

550 - 600

590

3.0

31.1

960100

-5.9

18.2

3.2

9.4

10.9

Hse

1653

600 - 694

640

-5.2

7.2

1058600

1.4

13.6

3.1

-6.5

-5.6

Apt Apt Apt Apt Hse

1 2 1 2 3

4857 2992 356 394 609

189 108 27 21 15

384 - 460 500 - 650 460 - 575 650 - 838 865 - 1300

420 558 500 750 980

0.0 -2.1 -4.8 3.4 -2.0

5.0 3.3 6.4 13.3 15.3

325300 648250 537850 1120350 2668300

-6.3 5.1 0.0 -6.8 -6.4

-21.7 -4.0 0.0 9.3 9.5

6.7 4.5 4.8 3.5 1.9

6.8 -6.8 0.0 11.0 4.8

34.2 7.6 0.0 3.7 5.3

Apt

222

625 - 795

740

6.5

24.4

1166150

0.0

16.2

3.3

0.0

7.0

Apt

203

518 - 606

550

-3.5

10.7

632250

-5.5

0.0

4.5

2.1

0.0

Flat

358

0.0

979450

-5.8

4.6

0.0

Hse

1259

875 - 1190

1050

-12.5

14.1

2434200

-2.4

26.4

2.2

-10.3

-9.7

Hse

1306

770 - 850

800

-2.4

11.6

1864750

-3.1

22.7

2.2

0.7

-9.1

Apt

479

550 - 623

580

-3.3

16.0

622600

-2.5

9.3

4.8

-0.9

6.2

Apt

547

765 - 903

853

3.4

20.1

936450

-6.8

9.8

4.7

10.9

9.4

Hse

509

950 - 1200

1150

27.8

28.5

2487250

-7.3

11.0

2.4

37.9

15.7

Hse

1115

850 - 990

900

-5.3

-2.2

2230500

-9.5

20.5

2.1

4.7

-18.8

Flat Flat Hse

1 2 3

717 799 936

15 9 27

465 - 538 528 - 591 750 - 895

485 543 793

3.2 9.7 1.0

29.3 14.3 14.1

496550 798900 2189200

-6.7 -3.9 -1.5

1.8 3.1 20.2

5.1 3.5 1.9

10.6 14.2 2.5

27.0 10.9 -5.1

Flat

336

0.0

743350

-1.0

6.8

0.0

Hse

979

650 - 755

725

-3.3

25.0

1119050

-5.7

14.9

3.4

2.5

8.8

TAX AND PROPERTY INVESTMENT SIMPLIFIED Accounting for $500million+ in Residential Property Investments. Great Advice and Affordable Service.

Let’s talk, call Martin 0508 T AGENT (824368) www.martindavidson.co.nz

nzpropertyinvestor.co.nz 85 87

Rental & Sales Statistics Apr/May 2025 RENTAL AREA Auckland - Avondale Auckland - BlockHse Bay/ New Windsor Auckland - Mt Albert/ Owairaka Auckland - Mt Albert/ Owairaka Auckland - Mt Roskill/ Wesley Auckland - St Lukes/ Sandringham Auckland - St Lukes/ Sandringham Auckland - Epsom Auckland - Three Kings Auckland - Royal Oak/One Tree Hill Auckland - Royal Oak/One Tree Hill Auckland - Royal Oak/One Tree Hill Auckland - Onehunga/ Oranga/Te Papapa Auckland - Onehunga/ Oranga/Te Papapa Auckland - Onehunga/ Oranga/Te Papapa Auckland - Remuera Auckland - Remuera Auckland - Remuera Auckland - Remuera South/ Meadowbank South Auckland - Penrose/Mt Wellington South Auckland - Penrose/Mt Wellington South Auckland - Mission Bay/ Orakei Auckland - St Helliers/ Glendowie Auckland - St Helliers/ Glendowie Auckland - Ellerslie Auckland - Ellerslie Auckland - Glen Innes/Pt England/Wai O Taiki Auckland - Mt Wellington North Auckland - Otahuhu Auckland - Otahuhu Auckland - Waiheke Island Auckland - Waiheke Island Auckland - Central West Auckland - Central West Auckland - Central West Auckland - Lynfield Auckland - Newton/Grafton Auckland - Newton/Grafton Auckland - Eden Terrace Auckland - Hillsborough Auckland - Meadowbank Auckland - St Johns Auckland - Mt Wellington Manukau - Mangere Bridge/ Airport Manukau - Mangere Manukau - Mangere Manukau - Otara Manukau - Papatoetoe North Manukau - Papatoetoe North Manukau - Manukau Central

trusted data

MEDIAN RENT MEDIAN VALUE YIELD RENT NO. OF NO. OF TYPE BEDS PROPERTIES 1 YR 5 YR 1 YR 5 YR 1 YR 5 YR BONDS QUARTILE CURRENT CHANGE RANGE CHANGE CURRENT CHANGE CHANGE CURRENT CHANGE CHANGE

Hse

1704

630 - 708

673

-6.5

22.4

999550

-5.5

20.5

3.5

-1.1

1.5

Hse

1660

640 - 730

670

-2.9

12.2

1133650

-3.9

16.3

3.1

1.1

-3.5

Flat

787

591 - 630

613

9.5

17.9

710750

-5.4

7.0

4.5

15.7

10.2

Hse

1447

700 - 829

748

-4.1

13.3

1579500

-3.5

20.1

2.5

-0.6

-5.6

Hse

830

650 - 750

700

-6.7

20.7

1057850

-6.8

11.2

3.4

0.2

8.5

Flat

869

540 - 590

550

3.8

15.8

683300

-8.2

5.3

4.2

13.1

9.9

Hse

1250

705 - 800

780

6.8

18.7

1585250

-3.6

18.3

2.6

10.8

0.4

Flat Hse

2 3

711 578

0 9

694 - 773

0 728

0.0 1.1

0.0 13.8

971950 1315450

1.6 0.2

4.8 20.3

0.0 2.9

0.0 0.9

0.0 -5.5

Hse

303

610 - 700

665

5.6

24.3

1525300

1.2

17.7

2.3

4.3

5.6

Hse

1438

750 - 899

800

-4.2

14.0

1668850

-4.2

15.6

2.5

0.0

-1.4

Hse

1201

858 - 1020

940

-5.5

10.3

2204350

-4.4

19.8

2.2

-1.2

-7.9

Flat

1738

523 - 568

550

-3.5

12.2

724900

-10.1

2.1

3.9

7.4

9.9

Hse

874

550 - 635

600

2.6

13.9

1175450

-7.5

20.3

2.7

10.9

-5.3

Hse

2340

681 - 795

743

0.4

14.3

1364350

-1.6

16.8

2.8

2.1

-2.1

Flat Hse Hse

2 3 4

441 1706 1985

0 39 21

801 - 1050 995 - 1420

0 900 1200

0.0 0.6 -4.0

0.0 18.4 9.1

967400 2411850 3588250

-2.8 -5.6 3.8

0.3 8.3 19.1

0.0 1.9 1.7

0.0 6.5 -7.5

0.0 9.4 -8.4

Hse

1291

738 - 878

800

-7.5

5.3

1576600

-3.2

12.0

2.6

-4.5

-6.0

Flat

460

0.0

647050

-7.3

6.5

0.0

Hse

1289

675 - 760

740

0.7

24.4

1118150

-5.7

28.5

3.4

6.7

-3.2

Hse

1093

780 - 850

795

-10.5

-5.0

1853700

-18.8

11.4

2.2

10.3

-14.7

Hse

1811

810 - 900

850

3.7

11.1

1907750

-11.6

20.0

2.3

17.3

-7.4

Hse

1655

900 - 1231

1145

-8.4

18.4

2454700

-3.9

18.6

2.4

-4.7

-0.2

Flat Hse

2 3

619 1238

0 30

750 - 820

0 795

0.0 6.0

0.0 22.3

726900 1333700

-5.7 -7.3

9.0 19.4

0.0 3.1

0.0 14.4

0.0 2.4

Hse

1228

645 - 780

720

-4.0

20.0

1185300

-4.2

20.0

3.2

0.3

0.0

Flat

611

550 - 570

550

1.3

14.6

666450

-8.3

6.1

4.3

10.5

8.0

Flat Hse Hse Hse Apt Apt Apt Hse Apt Apt Apt Hse Hse Flat Flat

2 3 2 3 1 2 3 3 1 2 2 3 3 2 2

504 1018 1679 1965 4684 3956 559 1429 893 1042 585 1494 736 345 345

18 21 12 9 186 147 15 36 36 33 15 30 9 6 0

450 - 494 620 - 720 625 - 785 813 - 1178 380 - 495 488 - 616 705 - 878 650 - 710 424 - 600 550 - 700 578 - 780 650 - 750 775 - 920 568 - 613 -

468 695 685 900 430 550 775 673 498 620 620 700 890 590 0

-2.5 0.7 -8.7 20.0 -4.4 -5.2 -3.1 -2.9 -0.4 0.0 0.0 0.0 17.1 9.7 0.0

11.4 27.5 37.0 38.5 0.0 3.8 9.9 14.1 23.9 3.3 3.3 13.5 13.4 18.7 0.0

444150 901300 1344800 1635050 354200 521400 1042250 1115950 359750 558650 714700 1163300 1796650 811000 685950

-9.9 -4.6 3.0 -8.7 -15.3 0.1 -1.5 -12.5 -8.8 -2.5 -0.7 0.2 2.8 -7.5 -5.0

5.5 13.8 26.7 18.5 -20.7 -18.3 -1.1 17.4 -19.7 -5.4 -1.2 19.6 19.9 3.8 11.9

5.5 4.0 2.6 2.9 6.3 5.5 3.9 3.1 7.2 5.8 4.5 3.1 2.6 3.8 0.0

8.2 5.6 -11.3 31.5 12.8 -5.2 -1.6 10.9 9.2 2.6 0.7 -0.2 14.0 18.6 0.0

5.6 12.1 8.1 16.8 26.1 27.0 11.1 -2.8 54.2 9.3 4.6 -5.2 -5.4 14.4 0.0

Hse

1653

660 - 720

690

-1.4

16.0

1085250

-2.6

26.2

3.3

1.2

-8.1

Hse Hse Hse

3 4 3

2273 666 2192

21 12 27

675 - 745 783 - 878 641 - 700

695 825 690

-0.7 3.1 6.2

26.4 32.0 25.5

875550 924700 770800

-6.8 -6.7 -0.9

18.5 18.5 25.8

4.1 4.6 4.7

6.5 10.5 7.2

6.6 11.4 -0.2

Flat

622

0.0

633300

1.7

14.1

0.0

Hse

897

700 - 770

740

-1.3

34.5

859200

-7.1

12.2

4.5

6.2

19.9

Hse

1253

658 - 720

700

4.5

26.1

853050

4.0

27.0

4.3

0.5

-0.7

NZPROPERTY PROPERTYINVESTOR INVESTOR 88 NZ 86

Rental Rental & & Sales Sales Statistics Statistics Apr/May Apr/May 2025 2025 RENTAL AREA Manukau - Botony Downs Manukau - Botony Downs Manukau - Dannemora Manukau - Dannemora Manukau - Howick Manukau - Howick Manukau - Howick Manukau - Half Moon Bay/ Farm Cove Manukau - Highland Park Manukau - Highland Park Manukau - Pakuranga Manukau - Pakuranga Manukau - Manukau and Manurewa Heights Manukau - Manukau and Manurewa Heights Manukau - Wattle Downs/ Conifer Grove Manukau - Manurewa North Manukau - Manurewa North Manukau - Manurewa North Manukau - Manurewa North Manukau - Mangere East Manukau - Papatoetoe South Manukau - Papatoetoe South Manukau - Papatoetoe West Manukau - Weymouth Manukau - Maraetai/ Clevedon Manukau - Maraetai/ Clevedon Papakura - Takanini/ Ardmore Papakura - Takanini/ Ardmore Papakura - Papakura/ Drury/Karaka Papakura - Papakura/ Drury/Karaka Papakura - Papakura/ Drury/Karaka Papakura - Papakura/ Drury/Karaka Franklin - Pukekohe/ Tuakau Franklin - Pukekohe/ Tuakau Franklin - Pukekohe/ Tuakau Franklin - Waiuku Franklin - Rural Franklin Franklin - Rural Franklin

trusted data

MEDIAN RENT MEDIAN VALUE YIELD RENT NO. OF NO. OF TYPE BEDS PROPERTIES 1 YR 5 YR 1 YR 5 YR 1 YR 5 YR BONDS QUARTILE CURRENT CHANGE RANGE CHANGE CURRENT CHANGE CHANGE CURRENT CHANGE CHANGE

Hse Hse Hse Hse Hse Hse Hse

3 4 3 4 2 3 4

2347 2394 1179 2796 196 1678 1629

Hse

1398

Hse Hse Flat Hse

3 4 2 3

1845 1013 546 1574

Hse

2345

Hse

33 27 18 36 18 18 24

704 - 780 818 - 900 720 - 780 825 - 875 575 - 660 700 - 765 780 - 880

750 865 750 850 600 720 825

0.0 1.8 0.0 -2.3 0.0 -2.4 -2.9

17.2 16.1 15.4 18.1 23.2 16.1 10.4

1241900 1523800 1297200 1403050 1086050 1209400 1523250

658 - 733

700

1.4

16.7

1274900

48 30 0 42

660 - 730 790 - 850 650 - 740

700 820 0 700

0.0 -2.4 0.0 -0.7

18.6 24.2 0.0 22.8

1304900 1552250 788850 1190900

681 - 771

710

-2.7

20.3

973550

1927

746 - 845

795

-6.5

21.4

-8.8 -4.9 -5.5 -7.5 -12.9 -5.5 -6.2

10.7 21.8 22.6 19.8 16.9 14.1 14.6

3.1 3.0 3.0 3.2 2.9 3.1 2.8

9.7 7.0 5.8 5.6 14.8 3.2 3.5

5.8 -4.6 -5.9 -1.4 5.4 1.8 -3.7

-7.1

15.4

2.9

9.1

1.1

-5.4 -2.2 -3.0 -4.2

20.9 32.0 19.1 16.3

2.8 2.7 0.0 3.1

5.8 -0.2 0.0 3.7

-1.9 -5.9 0.0 5.6

-2.8

21.2

3.8

0.1

-0.7

1133650

-0.7

18.8

3.6

-5.8

2.2

Hse

1484

674 - 721

700

0.3

25.0

967350

-4.4

26.0

3.8

4.9

-0.8

Flat Hse Hse Hse Hse

2 2 3 4 3

851 827 4195 933 1132

6 36 105 36 24

555 - 588 514 - 583 635 - 720 711 - 800 614 - 750

565 550 670 750 700

13.0 -5.2 0.0 -5.1 6.9

28.4 22.2 24.1 26.1 27.3

583500 659750 781800 929000 835250

-4.6 -4.9 -2.1 -3.8 -4.0

20.4 17.9 18.5 14.3 25.8

5.0 4.3 4.5 4.2 4.4

18.5 -0.3 2.2 -1.3 11.4

6.7 3.7 4.7 10.2 1.2

Flat

1316

520 - 640

550

0.0

19.6

630500

-1.5

10.7

4.5

1.6

8.0

Hse

971

680 - 750

730

4.3

30.4

863600

-5.3

10.2

4.4

10.1

18.3

Hse

1031

645 - 729

670

-0.7

17.5

825500

-4.8

17.2

4.2

4.3

0.3

Hse

1396

650 - 730

670

3.1

19.6

763900

-3.3

14.8

4.6

6.6

4.2

Hse

1107

690 - 765

730

-2.7

17.7

1176900

-0.4

20.3

3.2

-2.3

-2.1

Hse

2399

800 - 923

850

0.0

25.9

1449250

-4.6

17.7

3.0

4.9

6.9

Hse

1621

670 - 710

699

-0.1

27.1

864600

-4.5

27.4

4.2

4.6

-0.2

Hse

1340

760 - 810

790

-0.6

16.7

1028350

-2.2

19.8

4.0

1.6

-2.6

Flat

761

0.0

593550

-2.2

27.9

0.0

Hse

863

550 - 600

570

3.6

26.7

674050

-3.5

16.9

4.4

7.4

8.4

Hse

4516

640 - 694

660

-1.5

26.9

799400

-6.4

18.6

4.3

5.2

7.1

Hse

2323

700 - 895

820

5.1

34.4

1049050

-5.4

25.1

4.1

11.1

7.4

Hse

579

530 - 585

550

-5.7

22.2

682050

0.1

22.9

4.2

-5.8

-0.5

Hse

4317

600 - 659

630

-0.8

31.3

789000

-2.3

22.2

4.2

1.6

7.4

Hse

2810

690 - 750

700

-4.1

20.7

1009000

-2.7

20.0

3.6

-1.4

0.6

Hse Hse Hse

3 3 4

1640 1958 1764

21 36 33

560 - 620 548 - 700 693 - 850

580 660 765

-1.7 1.5 7.7

18.4 24.5 22.4

762300 880050 1066350

1.5 -2.0 -1.4

32.4 31.8 29.8

4.0 3.9 3.7

-3.2 3.6 9.3

-10.6 -5.5 -5.7

3955

450 - 563

500

8.7

42.9

935150

-2.1

38.9

2.8

11.0

2.8

WAIKATO / BAY OF PLENTY Thames/Coromandel Entire District Thames/Coromandel Entire District Hauraki - Entire District

Ray White Hamilton Online Rentals Ltd MREINZ

Hse

9491

508 - 665

583

1.4

38.8

1261800

9.2

59.1

2.4

-7.1

-12.8

Hse

3386

500 - 600

550

0.0

57.1

625600

2.4

44.9

4.6

-2.3

8.4

Smart investors know experience gets results Experience the Ray White Difference - over 1,300 Waikato investors already have

Ray White Hamilton Property Management | 07 839 7066 | pm.hamiltonnz@raywhite.com nzpropertyinvestor.co.nz 87 nzpropertyinvestor.co.nz 89 89

Rental & Sales Statistics Apr/May 2025 RENTAL AREA Waikato - Huntly Waikato - Rural Waikato District Waikato - Rural Waikato District Waikato - Rural Waikato District Matamata/Piako - Entire District Matamata/Piako - Entire District Matamata/Piako - Entire District Matamata/Piako - Entire District Hamilton - Te Kowhai/St Andrews/Queenwood Hamilton - Te Kowhai/St Andrews/Queenwood Hamilton - Te Kowhai/St Andrews/Queenwood Hamilton - Flagstaff/ Rototuna Hamilton - Flagstaff/ Rototuna Hamilton - Fairfield/ Fairview Downs Hamilton - Fairfield/ Fairview Downs Hamilton - Fairfield/ Fairview Downs Hamilton - Hamilton East/ University Hamilton - Hamilton East/ University Hamilton - Hamilton East/ University Hamilton - Hamilton East/ University Hamilton - Hillcrest/ Silverdale/Tamahere Hamilton - Dinsdale North/ Nawton Hamilton - Dinsdale South/ Frankton Hamilton - Hamilton Central/Maeroa/Frankton Junction Hamilton - Hamilton Central/Maeroa/Frankton Junction Hamilton - Hamilton Central/Maeroa/Frankton Junction Hamilton - Deanwell/ Melville/Fitzroy Hamilton - Deanwell/ Melville/Fitzroy Hamilton - Deanwell/ Melville/Fitzroy Hamilton - Deanwell/ Melville/Fitzroy Waipa - Cambridge/ Leamington Waipa - Cambridge/ Leamington Waipa - Cambridge/ Leamington Waipa - Te Awamutu Waipa - Rural Waipa Waipa - Rural Waipa Otorohanga/Waitomo Both Districts South Waikato - Entire District

trusted data

MEDIAN RENT MEDIAN VALUE YIELD RENT NO. OF NO. OF TYPE BEDS PROPERTIES 1 YR 5 YR 1 YR 5 YR 1 YR 5 YR BONDS QUARTILE CURRENT CHANGE RANGE CHANGE CURRENT CHANGE CHANGE CURRENT CHANGE CHANGE

Hse

1539

523 - 578

545

4.8

38.0

515850

7.5

41.1

5.5

-2.5

-2.2

Hse

948

476 - 550

530

6.0

39.5

737850

4.3

34.1

3.7

1.6

4.0

Hse

3084

550 - 650

600

1.7

42.9

732300

1.1

42.6

4.3

0.6

0.2

Hse

1159

619 - 705

660

-2.2

32.0

902750

0.2

28.9

3.8

-2.4

2.4

Flat

519

0.0

525850

2.8

26.7

0.0

Hse

775

430 - 490

480

6.7

41.2

563700

-2.1

32.8

4.4

9.0

6.3

Hse

4741

550 - 620

580

5.5

41.5

661650

-0.7

28.5

4.6

6.2

10.1

Hse

1864

550 - 710

600

1.7

43.9

800900

-0.2

25.8

3.9

1.9

14.3

Hse

723

530 - 580

563

2.4

34.0

657750

-2.6

28.5

4.5

5.1

4.4

Hse

4723

590 - 683

640

4.1

32.8

785250

-4.4

26.6

4.2

8.8

4.9

Hse

3340

690 - 800

750

3.4

33.9

1059650

-5.2

32.0

3.7

9.1

1.5

Hse

1734

650 - 700

680

3.0

23.6

914250

-0.8

27.0

3.9

3.8

-2.6

Hse

4049

750 - 798

760

0.0

27.7

1041050

-1.0

22.1

3.8

1.0

4.6

Hse

769

485 - 538

520

0.0

31.6

587300

-0.3

28.9

4.6

0.3

2.1

Hse

2999

570 - 630

600

0.0

29.0

653250

-2.1

25.1

4.8

2.2

3.2

Hse

710

620 - 710

680

3.3

36.0

771500

-5.1

25.8

4.6

8.9

8.1

Flat

806

385 - 450

410

-1.9

17.1

494400

-6.9

20.3

4.3

5.4

-2.7

Hse

649

463 - 550

510

2.0

28.5

678150

-9.4

34.8

3.9

12.6

-4.7

Hse

1991

580 - 660

638

8.1

38.7

760050

-5.6

18.9

4.4

14.6

16.7

Hse

939

600 - 720

670

0.0

22.9

873000

-3.5

25.9

4.0

3.6

-2.3

Hse

1609

573 - 653

600

2.6

26.3

752600

-5.8

25.2

4.1

8.9

0.9

Hse

3293

570 - 630

590

2.1

31.1

702300

-3.2

27.0

4.4

5.5

3.3

Hse

1586

568 - 600

593

4.0

30.3

618250

-5.3

26.4

5.0

9.8

3.1

Flat

477

420 - 450

450

13.9

32.4

467000

-11.8

22.0

5.0

29.1

8.4

Hse

1011

590 - 650

620

4.2

29.2

804200

8.6

37.5

4.0

-4.0

-6.0

Hse

300

650 - 780

720

5.9

26.3

0.0

Flat

543

480 - 540

480

4.3

33.3

479450

-8.2

12.2

5.2

13.7

18.8

Hse

597

500 - 596

550

3.8

37.5

570900

-5.3

25.7

5.0

9.6

9.4

Hse

3426

570 - 648

600

0.8

31.3

675200

-0.7

28.0

4.6

1.6

2.5

Hse

987

685 - 863

780

20.0

45.8

795250

-1.6

17.9

5.1

21.9

23.7

Hse

626

490 - 560

540

-1.8

31.7

686400

-2.8

22.6

4.1

1.0

7.4

Hse

2680

640 - 730

670

3.9

34.0

897700

2.3

36.9

3.9

1.5

-2.1

Hse

1342

701 - 758

750

-3.2

29.3

1048600

-1.9

28.6

3.7

-1.4

0.5

Hse Hse Hse

3 3 4

2503 1576 1966

27 24 24

580 - 630 590 - 680 675 - 800

600 675 750

-1.6 10.7 1.4

37.9 58.8 22.0

676150 826400 1151150

1.1 1.5 -6.5

33.9 38.9 37.1

4.6 4.2 3.4

-2.7 9.0 8.4

3.0 14.3 -11.1

Hse

2058

450 - 543

485

7.8

51.6

438300

-1.9

55.5

5.8

9.8

-2.6

Hse

4472

480 - 550

530

6.0

60.6

426250

1.4

51.6

6.5

4.5

6.0

NZPROPERTY PROPERTYINVESTOR INVESTOR 90 NZ 88

Rental & Sales Statistics Apr/May 2025 RENTAL AREA South Waikato - Entire District Taupo - Taupo Central/ Tauhara Taupo - Taupo Central/ Tauhara Taupo - Taupo West/Taupo South Taupo - Taupo West/Taupo South Taupo - Rural Taupo Western Bay of Plenty Kaimai/Te Puke Western Bay of Plenty Kaimai/Te Puke Western Bay of Plenty Waihi Beach/Omokoroa Western Bay of Plenty Waihi Beach/Omokoroa Tauranga - Mt Maunganui Tauranga - Mt Maunganui Tauranga - Mt Maunganui Tauranga - Mt Maunganui Tauranga - Mt Maunganui Tauranga - Papamoa Beach Tauranga - Papamoa Beach Tauranga - Papamoa Beach Tauranga - Pyes Pa/Hairini/ Welcome Bay Tauranga - Pyes Pa/Hairini/ Welcome Bay Tauranga - Tauranga Central/Greerton Tauranga - Tauranga Central/Greerton Tauranga - Tauranga Central/Greerton Tauranga - Tauranga Central/Greerton Tauranga - Bethlehem/ Otumoetai Tauranga - Bethlehem/ Otumoetai Tauranga - Bethlehem/ Otumoetai Tauranga - Bethlehem/ Otumoetai Rotorua - Holdens Bay/ Owhata/Ngapuna Rotorua - Kuirau/Hillcrest/ Glenholme Rotorua - Kuirau/Hillcrest/ Glenholme Rotorua - Kuirau/Hillcrest/ Glenholme Rotorua - Pukehangi South/Springfield Rotorua - Ngongotaha/ Pleasant Heights/Koutu Rotorua - Ngongotaha/ Pleasant Heights/Koutu Rotorua - Ngongotaha/ Pleasant Heights/Koutu

trusted data

MEDIAN RENT MEDIAN VALUE YIELD RENT NO. OF NO. OF TYPE BEDS PROPERTIES 1 YR 5 YR 1 YR 5 YR 1 YR 5 YR BONDS QUARTILE CURRENT CHANGE RANGE CHANGE CURRENT CHANGE CHANGE CURRENT CHANGE CHANGE

Hse

923

600 - 650

615

11.8

78.3

513400

-1.2

36.8

6.2

13.1

30.3

Hse

583

425 - 510

460

-1.1

42.9

588100

-0.8

45.8

4.1

-0.3

-2.0

Hse

1522

600 - 660

650

0.0

44.4

675900

-3.3

42.0

5.0

3.4

1.7

Hse

3507

640 - 725

660

1.5

48.3

887100

-7.1

31.2

3.9

9.2

13.0

Hse

1885

775 - 850

820

10.1

64.0

1161800

4.3

48.0

3.7

5.5

10.8

Hse

3321

400 - 550

460

-2.1

22.7

740300

4.9

52.9

3.2

-6.7

-19.8

Hse

661

500 - 655

570

6.5

47.3

751450

-7.2

52.6

3.9

14.8

-3.5

Hse

2910

650 - 730

695

-0.7

45.7

824950

1.2

32.4

4.4

-1.9

10.1

Hse

3655

600 - 688

650

3.2

44.4

960250

-1.8

42.2

3.5

5.1

1.6

Hse

1950

700 - 774

733

23.2

46.6

1217700

-6.3

31.2

3.1

31.5

11.7

Apt Flat Hse Hse Hse Hse Hse Hse

2 2 2 3 4 2 3 4

637 767 720 4077 1380 726 5492 3487

12 0 27 57 15 30 105 45

620 - 690 600 - 705 680 - 750 838 - 950 550 - 693 695 - 750 780 - 850

625 0 660 720 880 610 720 820

0.0 0.0 10.0 -0.7 -7.4 5.5 0.0 2.5

23.8 0.0 43.5 28.6 36.4 24.5 30.9 39.0

0 841700 1099750 1175600 1877250 756550 931000 1129000

0.0 -5.4 -3.1 0.7 -0.9 0.0 -5.2 -0.9

0.0 25.5 42.5 19.9 53.2 28.5 33.4 22.4

0.0 0.0 3.1 3.2 2.4 4.2 4.0 3.8

0.0 0.0 13.6 -1.4 -6.5 0.0 5.5 3.4

0.0 0.0 0.7 7.2 -10.9 -3.1 -1.8 13.5

Hse

4552

670 - 730

700

3.7

34.6

816100

-2.4

25.3

4.5

6.3

7.4

Hse

2897

738 - 850

800

1.9

37.5

1002750

-2.8

22.2

4.1

4.9

12.5

Flat

1010

535 - 628

575

6.9

40.2

604900

-1.9

24.7

4.9

8.9

12.5

Hse

1410

575 - 650

600

3.4

40.5

658400

-4.9

27.4

4.7

8.7

10.3

Hse

4279

650 - 700

670

0.0

36.7

727250

-3.3

22.8

4.8

3.5

11.3

Hse

1161

738 - 800

778

6.6

30.8

929450

-3.7

18.2

4.4

10.6

Flat

743

563 - 600

600

15.4

53.8

661300

-1.3

28.8

4.7

17.0

19.5

Hse

862

553 - 638

600

5.3

33.3

779950

-1.7

37.7

4.0

7.1

-3.2

Hse

5050

653 - 750

698

1.2

33.0

917250

-0.7

29.8

4.0

1.8

2.4

Hse

3028

733 - 880

800

-5.9

45.5

1145250

-1.0

23.3

3.6

-4.9

18.0

Hse

1996

600 - 610

600

0.3

30.4

642800

0.5

25.6

4.9

-0.1

3.8

Flat

466

445 - 500

478

12.5

34.6

0.0

Hse

776

488 - 530

500

-2.9

26.6

522500

5.0

25.7

5.0

-7.6

0.7

Hse

1937

616 - 650

623

9.3

36.9

617350

5.3

27.4

5.2

3.8

7.5

Hse

2105

600 - 670

623

2.1

29.8

689950

-0.3

30.0

4.7

2.5

-0.2

Hse

978

490 - 580

520

8.3

44.4

465250

4.0

33.8

5.8

4.2

8.0

Hse

4600

580 - 640

600

3.4

34.8

528100

0.0

26.8

5.9

3.4

6.3

Hse

967

635 - 690

670

3.1

28.8

717150

0.6

22.3

4.9

2.5

5.3

Property Management & Body Corporate oxygen.co.nz

nzpropertyinvestor.co.nz 89 nzpropertyinvestor.co.nz 91

Rental & Sales Statistics Apr/May 2025 RENTAL AREA Whakatane - Whakatane Whakatane - Whakatane Whakatane - Whakatane Whakatane - Whakatane Kawerau - Entire District Opotiki - Entire District

trusted data

MEDIAN RENT MEDIAN VALUE YIELD RENT NO. OF NO. OF TYPE BEDS PROPERTIES 1 YR 5 YR 1 YR 5 YR 1 YR 5 YR BONDS QUARTILE CURRENT CHANGE RANGE CHANGE CURRENT CHANGE CHANGE CURRENT CHANGE CHANGE

Flat Hse Hse Hse Hse Hse

2 2 3 4 3 3

481 789 3941 1437 1876 1287

0 6 27 9 12 6

455 - 650 600 - 665 660 - 750 483 - 583 520 - 550

0 480 620 750 550 550

0.0 2.1 3.3 5.6 12.2 10.0

0.0 33.3 45.9 53.1 65.7 71.9

487950 640100 806950 1073400 413850 518500

0.1 0.9 8.2 0.0 10.1 0.0

40.8 41.1 43.4 44.1 28.0 48.9

0.0 3.9 4.0 3.6 6.9 5.5

0.0 1.2 -4.5 0.0 1.9 0.0

0.0 -5.5 1.8 6.2 29.4 15.4

HAWKE’S BAY / GISBORNE Gisborne - Gisborne Gisborne - Gisborne Gisborne - Gisborne Gisborne - Gisborne Wairoa - Entire District Hastings - Havelock North Hastings - Havelock North Hastings - Flaxmere Hastings - Hastings/Clive Hastings - Hastings/Clive Hastings - Hastings/Clive Hastings - Hastings/Clive Napier - Napier Napier - Napier Napier - Napier Napier - Napier Napier - Taradale/Awatoto Napier - Taradale/Awatoto Central Hawkes Bay - Entire District

Flat Hse Hse Hse Hse Flat Hse Hse Flat Hse Hse Hse Flat Hse Hse Hse Hse Hse

2 2 3 4 3 2 3 3 2 2 3 4 2 2 3 4 2 3

502 1236 5763 1741 1585 341 2356 2116 1666 1158 6443 1897 1064 1502 7668 2310 705 3991

9 18 51 9 9 0 15 9 12 36 63 15 0 33 72 15 12 42

470 - 590 560 - 635 628 - 750 713 - 865 420 - 500 650 - 745 550 - 560 458 - 543 520 - 575 605 - 700 673 - 763 530 - 611 640 - 720 713 - 845 578 - 635 650 - 720

550 600 700 775 450 0 723 560 505 550 650 720 0 555 668 798 600 680

9.3 9.1 0.7 10.7 11.1 0.0 3.3 7.7 5.2 3.8 0.0 -10.0 0.0 0.9 2.8 6.4 2.6 0.0

77.4 71.4 75.0 76.1 60.7 0.0 39.0 47.4 44.3 46.7 42.9 30.9 0.0 38.8 42.1 53.5 40.5 38.8

493550 504100 574350 775750 0 640350 968450 480950 485200 615550 695500 856500 472500 610800 684800 949050 632300 749100

4.2 0.8 -0.5 0.3 0.0 0.1 -0.7 -6.6 -3.6 -4.1 2.1 -0.5 0.1 -1.4 2.6 -4.9 -0.7 -3.8

0.0 59.2 54.1 40.3 0.0 29.4 32.6 38.5 20.6 26.0 33.8 20.3 20.1 23.4 18.4 28.0 19.7 17.3

5.8 6.2 6.3 5.2 0.0 0.0 3.9 6.1 5.4 4.6 4.9 4.4 0.0 4.7 5.1 4.4 4.9 4.7

4.9 8.2 1.3 10.4 0.0 0.0 4.1 15.4 9.1 8.3 -2.0 -9.6 0.0 2.3 0.2 11.9 3.2 4.0

0.0 7.7 13.6 25.5 0.0 0.0 4.8 6.4 19.6 16.4 6.8 8.8 0.0 12.4 20.0 19.9 17.4 18.3

Hse

2112

515 - 620

550

5.8

52.8

568550

2.9

43.5

5.0

2.8

6.4

Flat

481

440 - 460

450

7.1

69.8

500650

0.0

47.1

4.7

7.1

15.4

Hse

476

480 - 600

555

0.9

54.2

604550

10.8

52.3

4.8

-8.9

1.3

Hse

2460

580 - 650

610

-3.2

38.6

617400

0.7

41.7

5.1

-3.8

-2.2

Flat

1321

455 - 525

500

19.0

53.8

506100

1.8

42.6

5.1

16.9

7.9

Hse

1156

485 - 570

540

-1.8

50.0

658800

5.3

44.1

4.3

-6.8

4.1

Hse

7668

600 - 675

630

-3.1

42.5

731550

-3.2

42.4

4.5

0.1

Hse

4134

700 - 790

750

-3.8

36.4

909950

-7.9

35.3

4.3

4.4

0.8

Hse

2259

530 - 595

560

1.8

40.0

517950

2.6

44.1

5.6

-0.8

-2.9

Hse

682

550 - 684

615

11.8

75.7

637100

-4.2

34.9

5.0

16.7

30.3

Hse Hse

3 3

1433 2360

18 24

550 - 570 520 - 580

550 550

0.9 0.9

83.3 66.7

483000 446500

2.3 -6.3

50.8 58.8

5.9 6.4

-1.3 7.7

21.6 5.0

TARANAKI

New Plymouth - New Plymouth Central/Moturoa New Plymouth - New Plymouth Central/Moturoa New Plymouth - New Plymouth Central/Moturoa New Plymouth - Outer New Plymouth New Plymouth - Outer New Plymouth New Plymouth - Outer New Plymouth New Plymouth - Outer New Plymouth New Plymouth - Waitara/ Inglewood New Plymouth - Rural New Plymouth Stratford - Entire District South Taranaki - Hawera South Taranaki - Rural South Taranaki Ruapehu - Entire District Ruapehu - Entire District

Hse

2150

368 - 550

495

10.0

80.0

357750

-2.3

86.3

7.2

12.6

-3.4

Hse Hse

3 4

2659 608

24 6

400 - 500 425 - 519

450 500

12.5 9.9

66.7 66.7

367600 465300

-5.8 1.6

42.9 34.5

6.4 5.6

19.4 8.1

16.6 23.9

MANAWATU / WHANGANUI Wanganui - Entire District Whanganui - Entire District Whanganui - Entire District Whanganui - Entire District Rangitikei - Entire District Manawatu - Entire District Manawatu - Entire District Palmerston North Highbury/Westbrook Palmerston North - Takaro/ Cloverlea/Milson

Flat Hse Hse Hse Hse Hse Hse

2 2 3 4 3 3 4

857 2261 8654 2691 2478 4326 1955

0 42 57 9 18 39 18

423 - 484 490 - 580 545 - 620 500 - 560 550 - 628 635 - 750

0 450 540 605 550 580 680

0.0 4.7 8.0 7.1 12.2 3.6 4.6

0.0 40.6 45.9 51.3 96.4 45.0 32.0

379950 422100 500400 666800 424650 559350 743400

5.9 4.7 -1.7 5.5 0.8 -6.7 -1.9

43.2 40.3 43.6 46.9 33.9 29.5 25.1

0.0 5.5 5.6 4.7 6.7 5.4 4.8

0.0 -0.1 9.9 1.5 11.4 11.0 6.6

0.0 0.2 1.6 3.0 46.7 12.0 5.6

Hse

1539

560 - 600

580

0.0

41.5

514600

-0.6

21.1

5.9

0.6

16.8

Hse

2631

580 - 650

600

2.6

46.3

577950

-0.3

31.0

5.4

2.9

11.7

NZPROPERTY PROPERTYINVESTOR INVESTOR 92 NZ 90

Rental & Sales Statistics Apr/May 2025 RENTAL AREA Palmerston North Hospital/Papaeoia Palmerston North - Kelvin Grove/Roslyn Palmerston North Awapuni South/Westend Palmerston North - Terrace End/Hokowhitu East Palmerston North Hokowhitu West and Lagoon Tararua - Entire District Horowhenua - Entire District Horowhenua - Entire District Horowhenua - Entire District Horowhenua - Entire District

trusted data

MEDIAN RENT MEDIAN VALUE YIELD RENT NO. OF NO. OF TYPE BEDS PROPERTIES 1 YR 5 YR 1 YR 5 YR 1 YR 5 YR BONDS QUARTILE CURRENT CHANGE RANGE CHANGE CURRENT CHANGE CHANGE CURRENT CHANGE CHANGE

Flat

319

415 - 430

420

5.0

40.0

419850

-1.9

0.0

5.2

7.0

0.0

Hse

2089

560 - 620

600

0.0

42.9

572300

-2.3

21.8

5.5

2.3

17.2

Hse

1229

588 - 625

600

3.4

37.9

622900

-0.4

28.2

5.0

3.8

7.6

Hse

1451

593 - 655

630

3.3

40.0

636600

-2.8

22.4

5.1

6.2

14.3

Flat

228

0.0

443850

-3.1

24.3

0.0

Hse

2713

450 - 490

450

-6.3

60.7

394950

-3.5

44.5

5.9

-2.9

11.2

Flat

861

0.0

398050

-0.6

21.5

0.0

Hse

2018

450 - 490

475

5.6

46.2

476850

-13.4

28.2

5.2

22.0

14.0

Hse

6447

520 - 590

550

0.0

52.8

534850

-2.8

23.3

5.3

2.9

23.9

Hse

1975

625 - 700

680

8.8

51.1

726750

-2.1

26.3

4.9

11.1

19.6

Hse

1514

525 - 560

530

2.3

32.5

691300

-1.4

20.6

4.0

3.7

9.9

Hse

4403

580 - 700

650

0.0

41.3

786150

-2.0

20.0

4.3

2.1

17.7

Hse

1390

550 - 620

580

3.6

28.9

740600

3.7

27.4

4.1

-0.1

1.2

Hse

5127

620 - 700

670

3.1

34.0

844550

3.5

27.9

4.1

-0.5

4.8

Hse

2647

713 - 850

750

-8.5

25.6

980850

0.9

22.8

4.0

-9.4

2.3

Hse

1385

670 - 760

700

-2.1

14.8

853750

0.2

11.8

4.3

-2.3

2.7

Hse

2296

665 - 780

740

2.1

24.4

849550

-5.1

25.4

4.5

7.5

-0.8

Hse

2762

850 - 918

900

7.1

28.6

1023200

-4.1

19.8

4.6

11.8

7.3

Hse

1974

650 - 760

680

-6.8

36.0

693100

0.2

16.4

5.1

-7.0

16.8

Hse

2397

558 - 673

600

0.0

26.1

583050

-0.9

22.0

5.4

0.9

3.3

Flat

632

483 - 544

508

2.6

29.6

499500

3.0

28.4

5.3

-0.4

0.9

Hse

1614

690 - 778

735

2.1

30.8

825650

-2.6

19.6

4.6

4.8

9.4

Flat

674

500 - 625

550

12.2

41.0

489900

0.3

24.1

5.8

11.9

13.7

Hse

2539

664 - 755

698

-2.4

28.1

705650

-5.8

11.4

5.1

3.6

14.9

Hse

2150

650 - 710

670

-2.9

21.8

677500

-5.4

16.9

5.1

2.6

4.2

Hse

1909

620 - 670

640

-1.5

28.0

640950

-1.6

19.4

5.2

0.0

7.2

Hse

2383

686 - 735

700

-2.8

20.7

813150

-7.7

12.0

4.5

5.3

7.8

Hse Hse Hse

3 3 2

3959 2215 491

30 27 18

655 - 710 660 - 710 580 - 673

680 695 645

4.6 2.2 4.0

41.7 41.8 23.6

621750 634900 698550

-1.3 -4.1 -3.1

21.1 13.8 9.2

5.7 5.7 4.8

6.0 6.6 7.3

17.0 24.7 13.1

WELLINGTON

Kapiti Coast - Waikanae/ Otaki Kapiti Coast - Waikanae/ Otaki Kapiti Coast Paraparaumu/Raumati Kapiti Coast Paraparaumu/Raumati Kapiti Coast Paraparaumu/Raumati Porirua - Paremata/Mana/ Pukerua Bay Porirua - Papakowhai/ Whitby/Pauatahanui Porirua - Papakowhai/ Whitby/Pauatahanui Porirua - Titahi Bay/ Onepoto/Elsdon Porirua - Porirua East/ Waitangirua Upper Hutt - Trentham North/Wallaceville Upper Hutt - Heretaunga/ Silverstream Upper Hutt - Trentham West/Eldersley/Clouston Park Upper Hutt - Trentham West/Eldersley/Clouston Park Upper Hutt - Totara Park/ Maoribank/Te Marua Lower Hutt - Stokes Valley Lower Hutt - Western Hills/ Haywards Lower Hutt - Wainuiomata Lower Hutt - Taita/Naenae Lower Hutt - Epuni/Avalon

Award Winning Property Management

tommysrentals.co.nz | 04 381 8604

nzpropertyinvestor.co.nz nzpropertyinvestor.co.nz 93 91

Rental & Sales Statistics Apr/May 2025 RENTAL AREA Wellington - Johnsonville/ Newlands Wellington - Johnsonville/ Newlands Wellington - Johnsonville/ Newlands Wellington - Johnsonville/ Newlands Wellington - Tawa/Grenada North Wellington - Tawa/Grenada North Wellington - Ngaio/ Kaiwharawhara/Wilton Wellington - Ngaio/ Kaiwharawhara/Wilton Wellington - Wadestown/ Thorndon Wellington - Wadestown/ Thorndon Wellington - Wadestown/ Thorndon Wellington - Lambton Wellington - Lambton Wellington - Te Aro Wellington - Te Aro Wellington - Mt Victoria/ Roseneath Wellington - Mt Victoria/ Roseneath Wellington - Hataitai Wellington - Vogeltown/ Berhampore/Newtown Wellington - Vogeltown/ Berhampore/Newtown Wellington - Vogeltown/ Berhampore/Newtown Wellington - Island Bay/ Melrose Wellington - Miramar/ Strathmore Wellington - Miramar/ Strathmore Masterton - Entire District Masterton - Entire District Carterton/South Wairarapa - Both Districts Carterton/South Wairarapa - Both Districts

trusted data

MEDIAN RENT MEDIAN VALUE YIELD RENT NO. OF NO. OF TYPE BEDS PROPERTIES 1 YR 5 YR 1 YR 5 YR 1 YR 5 YR BONDS QUARTILE CURRENT CHANGE RANGE CHANGE CURRENT CHANGE CHANGE CURRENT CHANGE CHANGE

Flat

1081

518 - 540

530

-0.9

13.5

614350

-6.2

15.0

4.5

5.6

-1.3

Hse

467

550 - 650

600

-3.2

21.2

786450

-2.9

16.0

4.0

-0.4

4.5

Hse

4828

654 - 750

695

-2.8

15.8

854050

-3.4

16.8

4.2

0.6

-0.8

Hse

2951

770 - 895

820

-5.7

17.1

1033800

-6.7

15.9

4.1

1.0

1.1

Hse

1867

640 - 730

695

-0.7

19.8

797300

-3.6

13.4

4.5

2.9

5.6

Hse

1507

720 - 800

795

8.9

22.3

929700

-3.8

14.2

4.4

13.3

7.1

Flat

378

455 - 524

480

-12.7

3.2

616300

0.3

13.6

4.0

-13.0

-9.1

Hse

1569

650 - 836

713

-8.6

5.6

973800

-6.6

15.4

3.8

-2.1

-8.5

Apt

411

350 - 520

430

-18.1

4.9

337200

-5.1

8.9

6.6

-13.7

-3.7

Apt

357

648 - 776

698

-6.3

7.4

584900

-15.4

-4.7

6.2

10.7

12.6

Hse

591

753 - 938

795

-12.0

5.3

1193000

-0.7

3.5

-11.3

1.8

Apt Apt Apt Apt

1 2 1 2

937 911 1505 2005

27 39 135 69

405 - 525 560 - 675 411 - 550 590 - 758

455 625 495 650

-9.9 -5.3 1.0 -0.8

5.8 0.8 12.5 4.8

272250 503650 412750 626750

-9.8 -7.0 -7.3 -11.8

-6.2 -10.2 -7.2 -8.5

8.7 6.5 6.2 5.4

-0.1 1.8 9.0 12.6

12.8 12.2 21.2 14.6

Apt

394

550 - 688

600

-7.7

0.0

Hse

415

800 - 985

880

1.4

10.7

1409700

-5.5

-2.9

3.2

7.3

14.0

Flat

225

540 - 623

550

-7.6

12.2

603250

-11.4

5.5

4.7

4.3

6.4

Flat

381

583 - 643

598

2.2

15.0

0.0

Hse

464

545 - 686

613

-5.7

5.7

899800

-3.9

14.0

3.5

-1.9

-7.3

Hse

1188

728 - 834

795

1.3

12.0

1000700

-5.5

6.3

4.1

7.2

5.3

Hse

1493

750 - 800

765

-1.7

13.3

1152850

6.4

20.7

3.5

-7.5

-6.1

Hse

424

555 - 680

650

5.7

22.2

856400

-4.1

13.6

3.9

10.2

7.5

Hse

2033

710 - 798

750

0.0

7.1

1005250

-6.8

14.8

3.9

7.3

-6.7

Hse Hse

2 3

1117 4714

27 39

415 - 500 528 - 613

478 550

6.2 0.0

39.8 42.9

495500 537600

3.7 3.8

29.9 26.4

5.0 5.3

2.4 -3.7

7.6 13.0

Hse

855

415 - 501

450

0.0

28.6

595050

5.2

29.8

3.9

-4.9

-0.9

Hse

3586

500 - 550

550

0.0

39.2

674450

-7.6

27.3

4.2

8.3

9.3

Hse

3764

600 - 675

650

0.0

30.0

783400

2.4

20.5

4.3

-2.4

7.9

Hse

2127

650 - 730

700

-5.4

27.3

981800

2.9

26.7

3.7

-8.0

0.4

Hse

1096

300 - 475

450

12.5

32.4

691250

6.2

30.2

3.4

5.9

1.7

Hse

3873

518 - 571

550

0.0

37.5

764300

7.1

28.1

3.7

-6.7

7.3

Flat

714

0.0

481150

3.2

14.2

0.0

Hse

1025

480 - 555

520

-1.9

26.8

608800

2.6

26.0

4.4

-4.4

0.7

Hse

3944

580 - 660

630

6.8

34.0

713650

-4.5

21.6

4.6

11.8

10.3

Hse

1307

583 - 664

615

4.2

36.7

823250

3.8

26.8

3.9

0.4

7.8

Flat

611

424 - 480

460

-4.2

31.4

503300

1.1

17.8

4.8

-5.2

11.5

Hse

1091

445 - 585

530

2.9

26.2

636000

-1.9

13.6

4.3

4.9

11.1

NELSON / TASMAN Tasman - Richmond/ Wakefield/Brightwater/ Mapua Tasman - Richmond/ Wakefield/Brightwater/ Mapua Tasman - Motueka/Rural Tasman Tasman - Motueka/Rural Tasman Nelson - Stoke/Nayland/ Tahunanui Nelson - Stoke/Nayland/ Tahunanui Nelson - Stoke/Nayland/ Tahunanui Nelson - Port Hills/Tahuna Hills Nelson - Nelson Central/ Nelson North Nelson - Nelson Central/ Nelson North

NZPROPERTY PROPERTYINVESTOR INVESTOR 94 NZ 92

Rental & Sales Statistics Apr/May 2025 RENTAL AREA Nelson - Nelson Central/ Nelson North Nelson - Nelson Central/ Nelson North Marlborough - Sounds/ Rural Marlborough Marlborough - Blenheim Central Marlborough - Blenheim Central Marlborough - Blenheim Central Marlborough - Blenheim Outer/Renwick Kaikoura/Hurunui - Both Districts Buller - Entire District Grey - Entire District

trusted data

MEDIAN RENT MEDIAN VALUE YIELD RENT NO. OF NO. OF TYPE BEDS PROPERTIES 1 YR 5 YR 1 YR 5 YR 1 YR 5 YR BONDS QUARTILE CURRENT CHANGE RANGE CHANGE CURRENT CHANGE CHANGE CURRENT CHANGE CHANGE

Hse

3423

573 - 688

595

-0.8

22.7

755350

-3.3

17.8

4.1

2.5

4.1

Hse

1386

600 - 708

690

1.5

19.6

1021850

2.7

24.8

3.5

-1.2

-4.2

Hse

2642

508 - 580

550

-4.3

31.0

724750

-4.2

34.6

3.9

-0.1

-2.7

Flat

862

0.0

428600

-0.9

28.3

0.0

Hse

651

314 - 495

475

1.1

31.9

500550

-3.9

31.5

4.9

5.2

0.3

Hse

3158

585 - 605

600

6.2

42.9

586100

-2.8

31.8

5.3

9.3

8.4

Hse

2722

575 - 673

615

7.9

38.2

677850

-2.3

40.5

4.7

10.4

-1.6

Hse

2729

453 - 575

520

7.7

43.6

668700

4.1

53.7

4.0

3.4

-6.5

Hse Hse

3 3

2126 2641

9 15

440 - 500 400 - 543

460 475

2.2 9.2

53.3 58.3

377200 417900

11.3 10.7

86.3 88.9

6.3 5.9

-8.2 -1.3

-17.7 -16.2

Hse

1402

423 - 490

450

0.0

28.6

455750

10.9

52.1

5.1

-9.8

-15.5

Flat

796

0.0

481250

1.9

45.3

0.0

Hse

4320

550 - 580

550

3.8

31.9

637950

1.4

48.3

4.5

2.3

-11.1

Hse

3803

555 - 623

600

3.4

39.5

736000

-3.5

54.9

4.2

7.2

-9.9

Hse

2220

585 - 738

650

-6.9

37.1

1124650

4.4

50.6

3.0

-10.8

-9.0

Flat

911

0.0

443700

2.5

53.3

0.0

Hse

766

488 - 528

500

0.2

38.9

547550

4.0

49.3

4.7

-3.7

-7.0

Hse

2950

548 - 643

595

3.5

48.8

633700

2.6

56.3

4.9

0.9

-4.8

Hse

892

615 - 668

650

-7.1

30.0

797800

-0.0

40.0

4.2

-7.1

Hse

3343

555 - 615

570

8.6

43.6

526200

4.3

61.6

5.6

4.1

-11.2

Hse

1032

435 - 550

480

-7.7

33.3

533350

0.9

57.9

4.7

-8.5

-15.6

Hse

2928

580 - 669

630

10.5

50.0

611000

0.1

55.8

5.4

10.4

-3.7

Hse

734

0.0

728450

-0.8

48.5

0.0

Hse

2254

540 - 680

575

-2.5

33.7

675850

3.4

48.3

4.4

-5.8

-9.9

Hse

1780

680 - 743

720

7.0

38.5

905850

3.2

50.0

4.1

3.6

-7.7

Hse

2673

565 - 688

615

2.8

46.4

700650

1.4

50.4

4.6

1.4

-2.6

Hse

2352

685 - 778

743

-0.9

37.6

910850

4.5

46.7

4.2

-5.2

-6.2

Flat

1397

395 - 430

420

2.4

40.5

407500

3.4

55.0

5.4

-0.9

-9.4

Hse

360

459 - 540

500

2.0

42.9

502000

2.4

49.1

5.2

-0.4

-4.2

Hse

1173

495 - 600

575

7.5

39.6

543650

1.6

49.7

5.5

5.8

-6.7

WEST COAST

Westland - Entire District

CANTERBURY

Waimakariri - Rangiora/ Kaiapoi Waimakariri - Rangiora/ Kaiapoi Waimakariri - Rural Waimakariri Christchurch - Redcliffs/ Sumner Christchurch - Woolston/ Opawa Christchurch - Woolston/ Opawa Christchurch - Woolston/ Opawa Christchurch - Woolston/ Opawa Christchurch - Aranui/ Bromley/Bexley Christchurch - North Beach/New Brighton/ Southshore Christchurch - North Beach/New Brighton/ Southshore Christchurch - North Beach/New Brighton/ Southshore Christchurch - Styx/ Parklands Christchurch - Styx/ Parklands Christchurch - Marshland/ Redwood Christchurch - Marshland/ Redwood Christchurch - Linwood/ Phillipstown Christchurch - Linwood/ Phillipstown Christchurch - Linwood/ Phillipstown

Our award-winning formula lies in our exceptional teamwork.

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nzpropertyinvestor.co.nz93 95 nzpropertyinvestor.co.nz

Licensed REAA 2008

TeamWorks

Rental & Sales Statistics Apr/May 2025 RENTAL AREA Christchurch - Sydenham/ Waltham Christchurch - Sydenham/ Waltham Christchurch - Sydenham/ Waltham Christchurch - St Martins/ Beckenham/Huntsbury Christchurch Westmorland/Cashmere/ Barrington Christchurch Westmorland/Cashmere/ Barrington Christchurch - Spreydon/ Somerfield Christchurch - Spreydon/ Somerfield Christchurch - Hillmorton/ Hoon Hay Christchurch - Richmond/ Shirley Christchurch - Merivale/St Albans West Christchurch - St Albans North/ Mairehau Christchurch - Fendalton/ Strowan/Bryndwr Christchurch - Fendalton/ Strowan/Bryndwr Christchurch - Riccarton Christchurch - Riccarton Christchurch - Riccarton Christchurch - Sockburn/ Upper Riccarton Christchurch - Halswell/ Wigram Christchurch - Halswell/ Wigram Christchurch - Hornby/ Islington/Hei Hei Christchurch - Ilam/ Westburn Christchurch - Avonhead/ Yaldhurst Christchurch - Avonhead/ Yaldhurst Christchurch - Burnside/ Harewood Christchurch - Burnside/ Harewood Christchurch - Bishopdale/ Papanui Christchurch - Bishopdale/ Papanui Christchurch - Sawyers Arms/Northcote/Belfast Christchurch - Sawyers Arms/Northcote/Belfast Banks Peninsula/Selwyn Both Districts Banks Peninsula/Selwyn Both Districts Banks Peninsula/Selwyn Both Districts Ashburton - Entire District Ashburton - Entire District Ashburton - Entire District Ashburton - Entire District Timaru - Timaru Township Timaru - Timaru Township Timaru - Timaru Township Timaru - Rural Timaru/ Temuka/Geraldine

trusted data

MEDIAN RENT MEDIAN VALUE YIELD RENT NO. OF NO. OF TYPE BEDS PROPERTIES 1 YR 5 YR 1 YR 5 YR 1 YR 5 YR BONDS QUARTILE CURRENT CHANGE RANGE CHANGE CURRENT CHANGE CHANGE CURRENT CHANGE CHANGE

Flat

1063

395 - 510

490

14.0

53.1

453800

-0.8

49.3

5.6

14.8

2.6

Hse

312

465 - 520

500

1.4

29.9

565950

4.5

58.5

4.6

-3.0

-18.1

Hse

733

550 - 650

590

1.7

39.8

658000

0.9

49.4

4.7

0.8

-6.4

Hse

1554

605 - 713

655

5.6

44.0

838500

-5.3

47.3

4.1

11.6

-2.3

Hse

1647

640 - 711

650

-3.0

36.8

963450

1.7

49.7

3.5

-4.6

-8.6

Hse

1749

626 - 980

865

13.1

51.8

1243450

3.5

53.0

3.6

9.3

-0.8

Hse

2469

540 - 650

600

-3.7

34.2

694450

0.1

46.5

4.5

-3.8

-8.4

Hse

518

658 - 750

698

9.1

45.4

816600

1.1

44.9

4.4

7.9

0.3

Hse

2343

550 - 620

590

-1.7

37.2

668500

1.2

48.6

4.6

-2.8

-7.7

Hse

2080

550 - 680

620

7.8

44.2

619400

2.5

53.6

5.2

-6.2

Flat

927

440 - 495

480

6.7

41.2

621350

3.1

49.7

4.0

3.5

-5.7

Hse

1470

619 - 680

650

2.4

47.7

900800

7.1

63.1

3.8

-4.4

-9.4

Hse

1489

591 - 758

688

5.8

41.9

1309250

8.6

51.2

2.7

-2.5

-6.2

Hse

1905

740 - 900

800

7.4

31.1

1767200

1.5

46.2

2.4

5.8

-10.3

Flat Hse Hse

2 2 3

1166 281 864

9 39 54

421 - 469 480 - 568 600 - 660

450 525 620

-0.7 1.0 6.9

25.0 38.2 40.9

532250 636350 782050

3.9 3.4 1.9

50.9 45.4 35.1

4.4 4.3 4.1

-4.4 -2.4 4.9

-17.2 -5.0 4.3

Hse

1223

550 - 630

585

-0.5

31.8

683850

3.6

47.0

4.4

-4.0

-10.4

Hse

4551

620 - 680

650

0.3

35.4

756500

0.5

45.6

4.5

-0.2

-7.0

Hse

4297

700 - 760

750

2.7

36.4

985700

1.1

45.2

4.0

1.6

-6.1

Hse

3362

560 - 630

580

5.5

34.9

628950

3.1

50.3

4.8

2.3

-10.2

Hse

815

585 - 650

600

3.4

33.3

802900

1.8

43.7

3.9

1.7

-7.2

Hse

2426

561 - 633

600

3.8

33.6

734550

1.4

45.4

4.2

2.4

-8.1

Hse

1690

618 - 758

720

5.9

37.1

883150

-1.0

43.9

4.2

7.0

-4.7

Hse

1921

599 - 683

630

5.0

40.0

748800

1.3

46.9

4.4

3.7

-4.7

Hse

1112

0.0

954550

-1.9

39.2

0.0

Hse

541

499 - 541

515

3.0

32.1

645800

4.7

45.6

4.1

-1.7

-9.3

Hse

2637

565 - 650

599

-0.2

33.1

742900

-2.3

51.7

4.2

2.2

-12.2

Hse

4413

588 - 650

600

3.4

33.3

672150

-2.3

42.5

4.6

5.9

-6.4

Hse

2386

684 - 704

700

1.4

34.6

930650

-4.0

28.5

3.9

5.6

4.8

Hse

1832

450 - 580

528

5.6

55.3

744550

14.7

69.8

3.7

-7.9

-8.6

Hse

8212

550 - 630

590

1.7

31.1

757450

-9.6

50.6

4.1

12.5

-12.9

Hse

8482

648 - 683

660

1.5

29.4

948550

-0.3

44.8

3.6

1.8

-10.6

Flat Hse Hse Hse Flat Hse Hse

2 2 3 4 2 2 3

767 859 5063 1994 1116 1382 5571

0 15 42 9 0 21 30

409 - 463 483 - 574 515 - 600 400 - 484 455 - 545

0 438 505 590 0 455 500

0.0 9.5 7.4 13.5 0.0 13.8 2.0

0.0 41.3 42.3 43.9 0.0 42.2 42.9

385500 451300 526550 728100 388500 433100 558850

0.1 -1.9 -3.0 -0.2 1.3 0.4 8.9

55.3 52.4 45.2 34.4 26.9 28.9 47.0

0.0 5.0 5.0 4.2 0.0 5.5 4.7

0.0 11.6 10.8 13.7 0.0 13.3 -6.3

0.0 -7.3 -2.0 7.1 0.0 10.3 -2.8

Hse

2515

430 - 530

460

2.2

31.4

523350

2.6

42.1

4.6

-0.4

-7.5

NZPROPERTY PROPERTYINVESTOR INVESTOR 96 NZ 94

Rental & Sales Statistics Apr/May 2025 RENTAL AREA

trusted data

MEDIAN RENT MEDIAN VALUE YIELD RENT NO. OF NO. OF TYPE BEDS PROPERTIES 1 YR 5 YR 1 YR 5 YR 1 YR 5 YR BONDS QUARTILE CURRENT CHANGE RANGE CHANGE CURRENT CHANGE CHANGE CURRENT CHANGE CHANGE

MacKenzie/Waimate - Both Hse Districts Waitaki - Entire District Hse Waitaki - Entire District Hse

2356

300 - 480

430

-4.4

22.9

629500

5.5

42.4

3.6

-9.5

-13.7

2 3

1436 4462

9 15

400 - 438 440 - 505

410 480

9.3 10.3

41.4 45.5

406400 477850

0.3 4.8

31.3 29.7

5.2 5.2

9.0 5.2

7.7 12.1

Hse

1010

453 - 570

525

14.1

26.5

671200

3.4

42.7

4.1

10.4

-11.3

Hse

4379

520 - 738

625

6.8

33.0

795800

-9.9

34.1

4.1

18.6

-0.8

Hse

2801

725 - 850

780

4.0

26.4

1638750

4.1

73.9

2.5

-0.1

-27.3

Hse

2149

775 - 1000

900

-7.7

36.0

1965700

-0.3

56.6

2.4

-7.4

-13.2

Hse

3034

880 - 1098

980

3.2

22.5

1773900

-2.0

41.1

2.9

5.2

-13.2

Hse

2409

1143 - 1300

1200

14.3

27.7

2224600

-5.6

38.8

2.8

21.1

-8.0

Hse

2722

553 - 650

590

1.2

20.4

666900

2.2

17.9

4.6

-1.0

2.1

Hse

1982

525 - 715

620

0.8

39.3

694550

19.7

35.0

4.6

-15.8

3.2

Hse

1175

513 - 574

540

8.0

35.0

568600

6.3

26.8

4.9

1.6

6.4

Hse

2631

573 - 650

620

4.2

39.3

692400

7.1

29.8

4.7

-2.7

7.3

Hse

1989

569 - 633

595

4.8

29.3

571400

1.7

11.5

5.4

3.0

16.0

Hse

2640

550 - 598

590

-0.8

26.9

611750

4.3

15.6

5.0

-5.0

9.8

Hse

2733

560 - 635

600

3.4

33.3

686050

1.6

21.6

4.5

1.8

9.6

Hse

2090

315 - 403

390

11.4

56.0

409000

-3.7

55.8

5.0

15.7

0.1

Hse

7414

365 - 485

440

-2.2

46.7

494200

5.9

58.7

4.6

-7.7

-7.6

Hse

2189

455 - 530

480

-2.0

39.1

641850

12.5

39.6

3.9

-12.9

-0.3

Hse

2538

480 - 560

500

8.0

66.7

400950

-0.0

54.2

6.5

8.0

8.1

Flat

652

379 - 431

403

7.5

55.0

322300

1.1

28.6

6.5

6.3

20.5

Hse

2631

460 - 568

500

5.3

42.9

427900

4.8

41.5

6.1

0.4

1.0

Flat Hse Hse Hse

2 2 3 4

1115 1014 9167 2470

0 21 66 18

429 - 461 481 - 558 540 - 650

0 450 530 570

0.0 4.7 7.1 1.2

0.0 40.6 49.3 32.6

396950 469900 466950 635600

6.6 4.9 0.2 -3.3

32.8 53.1 24.6 32.4

0.0 5.0 5.9 4.7

0.0 -0.2 6.8 4.7

0.0 -8.2 19.8 0.1

OTAGO

Central Otago - Entire District Central Otago - Entire District Queenstown Lakes Wanaka Queenstown Lakes Wanaka Queenstown Lakes Queenstown/Frankton/ Arrowtown Queenstown Lakes Queenstown/Frankton/ Arrowtown Dunedin - Musselburgh/ Vauxhall/Peninsula Dunedin - Kew/St Clair/St Kilda East Dunedin - North East Valley/Pine Hill Dunedin - Glenleith/ Roslyn/Belleknowles Dunedin - Kenmure/ Mornington Dunedin - Sunnyvale/ Abbotsford/Burnside Dunedin - Mosgiel

SOUTHLAND

Clutha/Southland - Both Districts Clutha/Southland - Both Districts Clutha/Southland - Both Districts Gore - Entire District Invercargill - Central Invercargill/Bluff Invercargill - Central Invercargill/Bluff Invercargill - Suburbs Invercargill - Suburbs Invercargill - Suburbs Invercargill - Suburbs

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Final Word

Return to fixed term Will changes to the RTA result in a resurgence in using fixed-term tenancies? David Faulkner investigates.

he changes to New Zealand’s Residential Tenancies Act (RTA), effective January 30, 2025, are set to reshape the landscape of rental agreements. Historically, fixed-term tenancies were the preferred type of tenancy agreement. However, since the previous Labour Government made radical changes to the Residential Tenancies Act in 2020, the need for fixed-term tenancies diminished due to landlords needing a valid reason to end a tenancy. Periodic tenancies became the norm as they offered tenants flexibility, and landlords had little need to prefer fixed-term arrangements. However, the new amendments may signal a shift in this dynamic, and I believe we will see a significant resurgence in the use of fixed-term tenancies. Previously, landlords needed valid grounds to terminate any fixed-term or periodic tenancy. This requirement, combined with the automatic transition of fixed-term agreements into periodic tenancies upon expiry (unless both parties agreed otherwise), diminished the appeal of fixed-term arrangements. Most landlords opted for periodic tenancies as they offered

simplicity and flexibility while adhering to legislative requirements. However, this flexibility often came at the cost of landlords’ long-term security. Even if a fixed-term tenancy was in place, landlords faced the same restrictions when seeking to end the tenancy early or upon its conclusion. The lack of differentiation between tenancy types meant there was little incentive to choose fixed-term arrangements. The amendments to the RTA bring critical changes that alter the landscape for both periodic and fixedterm tenancies. Notably, landlords will no longer require a valid reason to end a fixed-term tenancy at its conclusion, provided they give notice within the required timeframe (90 to 21 days before the end date).

Significant shift

This change marks a significant shift. Landlords are now presented with a tool that allows them to regain control of their property at the end of a fixed term without facing the same barriers associated with periodic tenancies. Even though landlords can now give 90-days notice without a valid reason, they still have some restrictions

around periodic tenancies. These types of tenancies remain subject to stricter termination rules, such as property sales. For landlords, fixed-term tenancies now provide greater security and flexibility. These agreements guarantee rental income for a defined period while offering the freedom to choose whether to extend or terminate the tenancy at its conclusion. This ability to end the agreement without a valid reason, coupled with protection from retaliatory termination claims, makes fixed-term tenancies attractive. Moreover, fixed-term tenancies provide a structured framework for landlords to plan property maintenance, renovations, or sale. Knowing that a tenancy will end on a specific date allows for better long-term planning, a benefit that periodic agreements cannot offer due to their open-ended nature. At Property Brokers, most tenancies are currently periodic. This reflects the current legislation we work under, where periodic agreements were seen as the path of least resistance under the previous legislative framework. However, I anticipate a shift in strategy as landlords and property managers adapt to the new rules.

Consider fixed term

Property managers will likely begin advising landlords to consider fixed-term agreements as a default option. The increased security and predictability these tenancies offer will likely drive this change. Additionally, fixed-term agreements can help mitigate disputes over termination, providing clarity for landlords and tenants. While the changes benefit landlords, it is crucial to consider the implications for tenants. Fixed-term tenancies reduce the flexibility tenants currently enjoy under periodic agreements. Tenants may face increased pressure to renew agreements or vacate properties at the end of a term, which could impact housing stability. However, these concerns can be alleviated through clear communication and mutually agreed terms at the outset of each tenancy. At Property Brokers, we are committed to helping landlords and tenants navigate these changes. As the industry evolves, so must our strategies, ensuring we continue delivering the best outcomes for all parties involved in the rental process. ■

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.

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