So long-term, I don’t like those demographics.
It’s a beautiful place to live, but beautiful doesn’t mean it’s a good investment. The market is too small for us to find consistent opportunities for investors.
Rolleston – Invest.
Rolleston is one of the fastest-growing towns in the country. Stats NZ expects the Selwyn district population to grow 47% over the next 25 years.
It’s affordable. It’s close to Christchurch. That’s why my team at Opes works with developers there who are building properties that stack up for investors.
Palmerston North – Skip.
Palmerston North has decent yields on paper. But the capital growth has been inconsistent. And the population doesn’t look like it’ll grow much.
We’ve looked at it, but right now we can find better opportunities elsewhere.
That’s different to what my economist (and podcast host) Ed said in this video. But I think he’s wrong 😅
Tauranga – Invest in three years.
Tauranga is a great long-term location – strong population growth. People love the lifestyle. But house prices are still expensive.
The average property is over $1 million, and the yield is low.
So you’re paying an Auckland price to NOT live in Auckland.
I think it needs more time for prices to become attractive relative to the rent you can get. My best guess … give it three years.
Invercargill – Skip.
Invercargill has been one of the best-performing markets in the country – house prices are up 22% since the bottom.
But that’s exactly the problem. Invercargill is now about 24% overvalued relative to its long-term trend.
As one commenter put it: “Invercargill deals aren’t what they once were.” They’re right.
Auckland – Definitely on my invest list.
Auckland is still about 22% below its peak.
Our data suggests it’s around 9% undervalued.
