Regional yield variations examined
Its latest Property Focus report has examined rental yields around the country, by looking at Real Estate Institute median prices compared to bonds lodged.
Nationwide yields dropped from 8% in 1992 to well below 6% in 2012. Auckland’s average yields dropped from 7.4% to 4.2%. Otago’s dropped sharply from 9.5% to 3%, Wellington’s went from 7.8% to 4.3%,Waikato’s went from 6.8% to 4.4% and Northland’s dropped from 6.5% to 4.7%.
The report notes that while house prices have risen 250% since 1992, rents have only increased by 120%. Since 2007, increases in rents have outpaced increases in property prices, although that is starting to change again.
Auckland’s rental yields are now only slightly below the national average, suggesting prices are not markedly more expensive when compared to rents.
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