The South Island is one area that nature is more important than the hustle and bustle of city life. Rural roads, quiet towns, amazing friendly people and the envy of many who travel here to see the beauty and quiet surroundings. These towns in the deep south still hold the true kiwi lifestyle that tourists come to see with a scenery to die for. Lets have a look at how the rents have performed in these town since 2003 through to 2018.
Queenstown
█ = Queenstown (3 Bedroom House)
We will start with Queenstown as we all know this town has become the Las Vegas, of New Zealand with tourists making this one spot on their to do list while in New Zealand. Queenstown has seen massive growth in property values and this has shown in rents. Though yields might be low, rents have increased around 260% since 2003, truly incredible. Queenstown will continue to perform well in rents in the south though properties are expensive to purchase so will keep many first time investors out of this market.
Ashburton
█ = Ashburton (3 Bedroom House)
Ashburton has had a bumpy ride since 2003. It took off from 2006 but then slowed down and rents declined after the GFC (Global Financial Crises) and then took off again in 2011 which would be the result of the Christchurch earthquake. Seven years on Ashburton has levelled out rental increases have slow down, due to many properties back on the rental market now in Christchurch.
West Coast
█ = West Coast (3 Bedroom House)
With the entire West Coast area having a population of just 32,400 and mostly isolated from other main towns and areas you would expect it to be well down on the graph for rents. However, the rents surpassed Timaru and Invercargill during 2008 through to 2013. However, since 2013 rents have declined and now sit par or just below an average 3 bedroom house in Invercargill. The declined could be due to the Pike River disaster and the coal industry in generally having many setbacks over the last number of years so demand for rentals has dropped hence rental prices have too.
Timaru
█ = Timaru (3 Bedroom House)
Timaru has been the steadiest of the four areas excluding Queenstown. Growing every year in rental prices and recently over the last year catching up with Ashburton. There has been a fluctuation of property developments and with Timaru being a port city this has helped increase rents to help this small city get better rental returns. Timaru is expected to grow steadily over the next 20 years.
Invercargill
█ = Invercargill (3 Bedroom House)
Invercargill has always been known for its great yields with some of the cheapest priced property across the country and good rental market. But is suprising that it only matched the West Coast rental prices. Invercargill still has very affordable housing and we may see over time rents increase more and more as investors start to look for returns. Invercargill has a good population of over 51,000 though hasn’t had the population increase and jobs to force rents higher than other above areas.
█ = Queenstown (3 Bedroom House)
█ = Ashburton (3 Bedroom House)
█ = West Coast (3 Bedroom House)
█ = Timaru (3 Bedroom House)
█ = Invercargill (3 Bedroom House)
Statistics and graphs provided by Landlords.co.nz
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