The CoreLogic Buyer Classification figures show that multiple property owners (regardless of whether they’re using a mortgage or not) have accounted for more than 40% of property purchases so far in 2023 in the old Auckland City Council area and in Manukau, which is higher than the other parts of the super-city. (By comparison, the figure is less than 30% in both Franklin and Rodney). So how do some key property investment performance metrics look in these popular areas, based on our new Market Trends dataset?
For three-bedroom houses in Manukau, we estimate that the median value is currently $925,000, which has dropped by 14% over the past year – albeit still 23% above where it was five years ago. For a two-bedroom apartment in Auckland City, the current median value is about $741,000, down by roughly 7% over the past year but still 17% higher than five years ago.
Regarding the rents for these respective locations and property types, a two-bedroom City apartment currently has an asking rent of about $620 per week and a gross rental yield of 4.4%. A three-bedroom house in Manukau asks $670 per week for a gross rental yield of roughly 3.8%. These figures all square with the ‘conventional wisdom’, which says that apartments don’t deliver as much long-term capital gain as houses but have a higher rental yield.
Of course, a higher yield can come with other considerations too. For example, an investor wanting to consider the likelihood of a resale further down the track may want to look at potential days to sell – which has recently been 38 for a City two-bed apartment, higher than a three-bed house in Manukau at 31, and that’s despite less of the City two-bed apartment stock (1.5%) having...
