Quarter 3 2018
As a residential investor, you could be forgiven for thinking you’re in the middle of a tug of war battle, with opposing forces on either side pushing and pulling you and your property in different directions. New rental regulations are thrusting challenges on to the sector while macro market forces and buyer sentiment are pushing demand and prices up.
Of course, this all depends on your perspective and where you sit in the market, as not all property is created equal anymore. Newer builds, multiple bathrooms and well insulate properties are on the rise in Dunedin and in higher demand from tenants than compared to the older traditional alternatives.
From a student investor perspective, student numbers have rebounded slightly this year, with a positive increase speculated by the University in the coming years. The spending power of many student tenants has also improved with increases to their student allowance (up $50 on 2017) and free money means more competition for improved accommodation.
The announcement of Dunedin’s new Hospital (circa $1.5b) is buoyed by the University’s own construction plans of over $600m within the next decade and potentially more to follow after that. This construction activity is very positive for Dunedin overall and is tipped to increase worker numbers looking for accommodation across the city. This puts pressure on suburban and student property alike, as different tenants are pushed around competing for what property is available.