Auckland holds on to rental premium

Its report for October shows that the estimated average return for Manukau properties was 4.4% over the past 12 months.

Auckland central’s return was slightly ahead at 4.5% but Crockers said that did not include the fact that Manukau had also reported very strong returns over 2011.

North Shore’s returns were the lowest in the Auckland region, at 3.8%.

Crockers says that over recent months, West and South Auckland have begun to figure more prominently in investors’ plans.

“Over the last two months, the proportion [of investors] citing South Auckland [as a future growth area] has increased from 155 to 27% and those nominating West Auckalnd have increased 7% to 24%.”

Two-bedroom Auckland  properties are now being rented for $387 a week on average, a 21% premium over the rest of New Zealand. That’s up from $383 the month before.

But in the three-bedroom market, rents have dropped slightly to $497 on average in Auckland – still a premium of 38% over the rest of New Zealand.