Growing Demand Towards One Bedroom Aparments

The feature article in the April 2016 issue of NZ Property Investor Magazine is “Top 50 Hottest Suburbs – where you can find the best yield”.

To select the top 50 suburbs, 481 locations around New Zealand were analysed and there was also a distinction made between bedroom numbers and apartments and houses were separated to show as separate entries.

And the winner for the highest current yield? One bedroom apartments in Lambton, Wellington. According to NZ Property Investor Magazine figures these apartments have a 9.7% yield, while 1 bedroom apartments in Wadestown come in at number 7 with a 7.7% yield and one bedroom apartments in Te Aro come in at number 8 also with 7.7% yield.

This comes as no real surprise to us, as we find apartments in the city attract significant demand and are easy to let. We feel that the reason for the high yield has more to do with the rents being strong rather than the value of the properties being weak, as is the case with the second place getter, Kaikohe, which has been through an economic downturn in the last few years, has a high percentage of welfare beneficiaries and where median values have only last year caught up to pre-GFC levels.

We feel that the greater population in the city allows people to live in their own space but never be far from interpersonal contact and a feeling of involvement. We also feel that the demand for 1 bedroom apartments is healthy with the development of the Creative Technology and Arts Centre on the old Deka site on Cuba and Dixon Streets. This centre is set to host 1,000 full-time students from 2018.

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