Westpac Property Investor Report

Yield or capital gain?

If you’re looking at investing in property some of the questions you’re likely to ask yourself include “do I invest for capital gain or yield?” and “where should I invest?”.

The exclusive Westpac Property Investor Report (September 2014) may help shed some light on finding the answers to those questions and more.

Welcome to the full Westpac Property Investor Report (September 2014). Westpac is proud to share this report with you and hope it gives you some helpful insight on what suburbs may have potential for residential property investment. If you have any questions, please contact your Westpac contact or your Investment Property Lending Specialist directly. 

The full Westpac Property Investor Report (September 2014) includes yield and capital gain returns information for most suburbs in seven centres across New Zealand: including Auckland, Hamilton, Tauranga, Palmerston North, Wellington, Christchurch and Dunedin, for the 12 months to 30 September 2014. To see which cities, suburbs and property types could best suit your residential property investment goals, download the full Westpac Property Investor Report (September 2014) now.

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Auckland

Auckland

When looking at which areas across the country do best in both “capital gain” and "rental yield”, Auckland takes all top ten spots and is led by Otara, which has the best gains with a gross yield of 5.9% and a capital gain of 15.9%.

Overall, Auckland’s residential market continues to show strong capital growth with average capital gains sitting at 12.2% across the region. A closer look at the numbers show that this growth is being driven by Auckland’s southern and outer central suburbs with areas such as Mangere Bridge and Glen Innes showing gains of 17.5%.
Auckland apartments/flats display a similar trend with 12% capital growth, however the strongest growth in this part of the market is in Mount Wellington (17.4%) and Panmure (17.2%).

When it comes to “rental yields”, Wellsford is the best area in houses with a gross yield of 7.1%. Central Auckland remains top for the apartment/flat market with a 6.5% gross yield.

Auckland: Top 10 suburbs for Capital Gain returns

Suburb Property type Median Weekly Rent Estimated Valuation (2014) Capital Gain
Mangere Bridge House (3 Beds) $450 $620,000 17.5%
Glen Innes House (3 Beds) $490 $679,000 17.5%
Mount Wellington Apt/Flat (2 Beds) $377 $412,000 17.4%
Panmure Apt/Flat (2 Beds) $382 $432,000 17.2%
Mangere House (3 Beds) $400 $432,000 16.8%
Waterview Apt/Flat (2 Beds)  $350 $501,000  16.5% 
Point England  Apt/Flat (2 Beds)  $385  $383,000  16.2% 
Otara  House (3 Beds) $395  $348,000  15.9% 
Meadowbank  Apt/Flat (2 Beds)  $397  $520,000  15.8% 
Royal Oak  Apt/Flaty (2 Beds)  $440  $558,000  15.4% 

Auckland: Top 10 suburbs for Gross Yield returns

Suburb Property type Median Weekly Rent Estimated Valuation (2014) Gross Yield
Wellsford House (3 Beds) $400 $293,000 7.1%
Auckland Central Apt/Flat (2 Beds) $432 $345,000 6.5%
Otahuhu Apt/Flat (2 Beds) $312 $254,000 6.4%
Manuerwa Apt/Flat (2 Beds) $359 $294,000 6.3%
Manukau Apt/Flat (2 Beds) $377 $321,000 6.1%
Eden Terrace Apt/Flat (2 Beds)  $461 $401,000  6.0% 
Mangere East  Apt/Flat (2 Beds)  $320  $279,000  6.0% 
Takanini  Apt/Flat (2 Beds)  $320  $280,000  5.9% 
Otara  House (3 Beds)  $395  $348,000  5.9% 
Grafton  App/Flat (2 Beds)  $478  $424,000  5.9% 

Hamilton & Tauranga

Hamilton

Hamilton continues to show good levels of growth in capital gains with Hillcrest leading the way (5.3%) and Fairview Downs showing the strongest growth in the apartment/flat sector.

Hamilton: Top 10 suburbs for Capital Gain returns

Suburb Property type Median Weekly Rent Estimated Valuation (2014) Capital Gain
Hillcrest House (3 Beds) $350 $355,000 5.3%
Fairview Downs Apt/Flat (2 Beds) $280 $229,000 5.0%
Nawton Apt/Flat (2 Beds) $255 $209,000 4.9%
Deanwell House (3 Beds) $337 $289,000 4.7%
Claudelands Apt/Flat (2 Beds) $221 $260,000 4.6%
Silverdale  House (3 Beds) $350  $322,000  4.4% 
Rototuna  House (4 Beds) $460  $503,000  4.1% 
Hamilton East House (3 Beds) $350  $368,000  4.0% 
Queenwood House (3 Beds) $360  $379,000  3.9% 
Hamilton Central  House (3 Beds) $340  $399,000  3.9% 

Hamilton: Top 10 suburbs for Gross Yield returns

Suburb Property type Median Weekly Rent Estimated Valuation (2014) Gross Yield
Deanwell Apt/Flat (3 Beds) $380 $282,000 7.0%
Frankton Apt/Flat (2 Beds) $310 $245,000 6.6%
Silverdale Apt/Flat (2 Beds) $263 $211,000 6.5%
Fairview Downs Apt/Flat (2 Beds) $280 $229,000 6.4%
Nawton Apt/Flat (2 Beds) $255 $209,000 6.4%
Deanwell  House (3 Beds) $337 $289,000 6.1% 
Fitzroy  Apt/Flat (2 Beds)  $252  $219,000  6.0% 
Nawton  House (3 Beds)  $330  $288,000  6.0% 
Fairfield  Apt/Flat (2 Beds)  $280  $246,000  5.9% 
Maeroa  House (3 Beds)  $340  $305,000  5.8% 

Tauranga

When it comes to capital gains in Tauranga; the suburb of Bethlehem has the best growth in the region for apartments/flats at 5.3% whereas Mount Maunganui has an average 3.6% in capital gains for both apartments/flats and houses.

Tauranga: Top 5 suburbs for Capital Gain returns

Suburb Property type Median Weekly Rent Estimated Valuation (2014) Capital Gain
Bethlehem Apt/Flat (3 Beds) $315 $335,000 5.3%
Greerton Apt/Flat (2 Beds) $272 $300,000 4.6%
Otumoetai Apt/Flat (2 Beds) $275 $286,000 3.7%
Mount Maunganui House (3 Beds) $375 $455,000 3.6%
Mount Maunganui Apt/Flat (2 Beds) $331 $311,000 3.6%

Tauranga: Top 5 suburbs for Gross Yield returns

Suburb Property type Median Weekly Rent Estimated Valuation (2014) Gross Yield
Hairini House (3 Beds) $350 $264,000 6.9%
Tauranga Apt/Flat (2 Beds) $272 $246,000 5.8%
Greerton House (3 Beds) $330 $310,000 5.5%
Mount Maunganui Apt/Flat (2 Beds) $331 $311,000 5.5%
Welcome Bay House (3 Beds) $350 $332,000 5.5%

 

Palmerston North & Wellington

Palmerston North

The best growth in Palmerston North is in Cloverlea for apartments/flats (3.8%) and Ashhurst for houses (2.5%).

Palmerston North: Top 5 suburbs for Capital Gain returns

Suburb Property type Median Weekly Rent Estimated Valuation (2014) Capital Gain
Cloverlea Apt/Flat (2 Beds) $210 $190,000 3.8%
Kelvin Grove  Apt/Flat (2 Beds) $225 $186,000 2.9%
Takaro  Apt/Flat (2 Beds) $210 $181,000 2.7%
Awapuni  Apt/Flat (2 Beds) $219 $207,000 2.7%
Ashhurst  House (3 Beds) $280 $230,000 2.5%

Palmerston North: Top 5 suburbs for Gross Yield returns

Suburb Property type Median Weekly Rent Estimated Valuation (2014) Gross Yield
Westbrook House (3 Beds) $277 $214,000 6.7%
Cloverlea  House (3 Beds) $300 $233,000 6.7%
Takaro  House (3 Beds) $300 $236,000 6.6%
Milson  House (3 Beds) $300 $242,000 6.5%
Roslyn  House (3 Beds) $292 $236,000 6.4%

Wellington

In Wellington, we can see that Berhampore has the highest capital gains at 4.3% for housing and when it comes to apartments/flats, Petone leads with 2.8%.

Wellington: Top 10 suburbs for Capital Gain returns

Suburb Property type Median Weekly Rent Estimated Valuation (2014) Capital Gain
Berhampore House (3 Beds) $500 $506,000 4.3%
Roseneath House (3 Beds) $600 $627,000 4.1%
Mount Cook House (3 Beds) $560 $524,000 3.3%
Brooklyn House (3 Beds) $500 $545,000 3.3%
Ngaio House (3 Beds) $475 $509,000 3.1%
Alicetown  House (3 Beds) $420 $470,000  3.1% 
Mount Victoria  House (3 Beds)  $600 $782,000  3.1% 
Miramar  House (3 Beds)  $475 $552,000  2.9% 
Petone  Apt/Flat (2 Beds)  $325 $285,000  2.8% 
 Kingstown House (3 Beds)  $480 $601,000  2.8% 

Wellington: Top 10 suburbs for Gross Yield returns

Suburb Property type Median Weekly Rent Estimated Valuation (2014) Gross Yield
Waitangirua House (3 Beds) $320 $199,000 8.3%
Elsdon House (3 Beds) $370 $244,000 7.9%
Roseneath Apt/Flat (2 Beds) $450 $310,000 7.6%
Wainuiomata House (3 Beds) $305 $214,000 7.4%
Naenae House (3 Beds) $340 $246,000 7.2%
Aro Valley  Apt/Flat (2 Beds)  $402 $294,000  7.1% 
Wadestown  Apt/Flat (2 Beds)  $461  $338,000  7.1% 
Taita  House (3 Beds)  $340  $253,000  7.0% 
Maoribank  House (3 Beds)  $370  $281,000  6.8% 
Te Marua House (3 beds)  $370  $284,000  6.8% 

 

Christchurch & Dunedin

Christchurch

Christchurch continues to perform strongly with a capital gain of 9.3% in both the house and apartment/flat sectors of the market. Islington leads the way with a capital gain of 13.2% in apartment/flat values while Hornby leads in housing with 11.5%.

When it comes to rental yields in Christchurch; Aranui has 8% gross yield for housing with Edgeware sitting at a 7.3% for apartments/flats.

Christchurch: Top 10 suburbs for Capital Gain returns

Suburb Property type Median Weekly Rent Estimated Valuation (2014) Capital Gain
Islington Apt/Flat (2 Beds) $310 $296,000 13.2%
Hei Hei Apt/Flat (2 Beds) $310 $316,000 13.2%
Wigram Apt/Flat (2 Beds) $360 $301,000 13.1%
Sockburn Apt/Flat (2 Beds) $350 $298,000 12.6%
Hornby Apt/Flat (2 Beds) $310 $277,000 11.9%
Riccarton  Apt/Flat (2 Beds) $371  $322,000  11.6%
Hornby  House (3 Beds)  $430  $386,000  11.5% 
Harewood  Apt/Flat (2 Beds) $370  $322,000  11.3% 
Avonhead Apt/Flat (2 Beds) $370  $383,000  11.3% 
Hillmorton Apt/Flat (2 Beds) $350 $303,000 11.3%

Christchurch: Top 10 suburbs for Gross Yield returns

Suburb Property type Median Weekly Rent Estimated Valuation (2014) Gross Yield
Aranui House (3 Beds) $395 $257,000 8.0%
Phillipstown House (3 Beds) $400 $283,000 7.3%
Edgeware Apt/Flat (2 Beds) $323 $230,000 7.3%
Avonside House (3 Beds) $410 $297,000 7.2%
Waltham House (3 Beds) $450 $336,000 7.0%
Dallington  Apt/Flat (2 Beds) $350 $262,000  7.0%
Burwood  Apt/Flat (2 Beds) $350  $263,000  6.9% 
Richmond  Apt/Flat (2 Beds) $305  $232,000  6.8% 
Bromley  Apt/Flat (2 Beds) $300  $237,000  6.6% 
Sydenham  Apt/Flat (2 Beds) $326  $262,000  6.5% 

Dunedin

Dunedin’s highest capital gains continue to be strongest in the student enclave of North Dunedin for housing (4.4%) and Roslyn for apartments/flats (4.1%). While Glenleith has the highest gross yield for housing at 8.4% with Dunedin central topping gross yield for apartments/flats at 7.5%.

Dunedin: Top 10 suburbs for Capital Gain returns

Suburb Property type Median Weekly Rent Estimated Valuation (2014) Capital Gain
North Dunedin House (4 Beds) $470 $311,000 4.4%
Roslyn Apt/Flat (2 Beds) $282 $274,000 4.1%
Musselburgh House (3 Beds) $340 $266,000 3.9%
Saint Clair House (3 Beds) $310 $331,000 3.7%
Abbotsford House (3 Beds) $325 $264,000 3.6%
Roslyn House (3 Beds) $320 $367,000 3.2%
Musselburgh Apt/Flat (2 Beds) $210 $231,000 3.0%
Mosgiel House (3 Beds) $315 $276,000 2.9%
Maori Hill House (3 Beds) $415 $356,000 2.9%
Kew House (3 Beds) $310 $273,000 2.6%

Dunedin: Top 10 suburbs for Gross Yield returns

Suburb Property type Median Weekly Rent Estimated Valuation (2014) Gross Yield
Glenleith House (3 Beds) $320 $199,000 8.4%
Woodhaugh House (3 Beds) $337 $215,000 8.2%
Port Chalmers House (3 Beds) $275 $176,000 8.1%
Caversham House (3 Beds) $280 $183,000 8.0%
North Dunedin House (4 Beds) $470 $311,000 7.9%
Burnside House (3 Beds) $325 $225,000 7.5%
Dunedin Central Apt/Flat (2 Beds) $271 $188,000 7.5%
Dunedin Central House (3 Beds) $330 $238,000 7.2%
Mosgiel Apt/Flat (2 Beds) $220 $163,000 7.0%
North East Valley House (3 Beds) $290 $217,000 6.9%