Dunedin Student & Residential Investment Update

Dunedin Student  Residential Investment Update

Quarter 2 2018

As new government initiatives continue to hassle investors, the Dunedin investment market has continued to move forward, unabated by recent announcements extending the Bright-line test to five years (paying tax on capital gains) and the more recent announcement to ring-fencing losses around property portfolios. While both negatively impact investors, the strong entry point factors favouring Dunedin above other centres, and the apparent increase in demand from tenants is currently opposing these forces for many investors.

Property Managers are reporting significant early applications for student flats for 2019 and rental prices appear to be increasing with demand, more so than in recent years. The University has suggested more students are enrolling and announcements like the new $1.4 billion hospital build are underpinning economic and investment confidence in Dunedin.

From speculation to fact, sales volumes have increased since 2017, and yields have tightened in all three areas we monitor below, evidencing investors’ confidence in this market. Studio rooms were a particularly strong property type to purchase, which generally delivers a healthier cash return, and is in favour with more buyers than previously experienced.

Dunedin is still very much on the map for investors with the low entry point and relatively high returns when compared to other centres. The wider residential home ownership market is currently very buoyant, out pacing all the main centres for current year on year growth. This unpinning confidence is setting up Dunedin for a very strong year ahead. 


ResStuDunedinQ218

Dunedin Student & Residential Investment Update

Related Experts
expert photo

Matt Morton

Residential Investment Sales

Dunedin

Matt’s inception into real estate started in 2011 when he was was tasked with introducing the Colliers brand into the residential investment market in Dunedin. With 20 years of business and commercial management experience, Matt quickly developed a reputation in the real estate sector for a very high level of quality and professionalism and introduced a residential investment selling strategy that still exceeds buyers’ and clients’ expectations.

He is trusted by clients nationwide and abroad to deliver a smooth sales process leading to record sales, and his local knowledge and understanding of the market is called upon by an array of stakeholders throughout the investment property sector. Matt now leads the residential investment team in Dunedin and continues to command the respect of his peers and the investment community.

 

View expert