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10 areas netting 25% returns in NZ

10 areas netting 25% returns in NZ

by Grace Ormsby | February 20, 2020 | 1 minute read

If you’ve ever considered investing across the ditch, there are 10 areas that have delivered returns of at least 25 per cent in the last 12 months alone, new data has revealed.

New Zealand
New Zealand
by Grace Ormsby
February 20, 2020

A CoreLogic NZ Property Pulse from economist Kelvin Davidson has highlighted the 10 best-performing areas around the country, based on annual investment total returns.

CoreLogic has calculated annual investment total returns by combining gross yields with a change in property values.

Here are the top 10 New Zealand areas by annual investment total returns, with Mr Davidson noting the gross return on capital invested would be even higher for a mortgaged investor:

1. Rangitikei
2. Clutha
3. Gisborne
4. Otorohanga
5. Wanganui
6. Wairoa
7. Manawatu
8. Kaweau
9. Horowhenua
10. Dunedin

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While all of the top 10 were noted as delivering returns above 25 per cent, Rangitikei, Clutha and Gisborne all managed returns above 30 per cent.

In his analysis, Mr Davidson also highlighted that there are 10 regions nationwide posting gross rentals yields in excess of 5 per cent.

“Those are impressive figures, especially when you consider that term deposits are currently paying less than 3 per cent,” he said.

Here are the top 10 New Zealand areas by gross rental yield:

1. Grey
2. Buller
3. Clutha
4. Waimate
5. South Taranaki
6. Ruapehu
7. South Waikato
8. Waitomo
9. Rangitikei
10. Wairoa

Homing in on Clutha, Mr Davidson commented: “Looking more closely at that part of the country, our data shows that it has a very small number of available listings, meaning that buyers have little choice.”

The demand side of the equation also looks solid, according to the economist, who observed close to 100 purchases in Clutha last year alone – making it the second largest year for purchases in the area since 2008.

10 areas netting 25% returns in NZ
New Zealand
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