Propertyscouts Property Management
Regional Roundup

Regional Roundup National Propertyscouts


Is Invercargill a good place to invest?

House prices haven’t yet got the Government message that they are meant to slow down, that is for sure!

Invercargill has the population and the sustainability to give you good returns and provide a high-quality long-term investment.

Current Invercargill prices still give you the chance to buy a bargain. In Auckland Central it takes 93.6% of one median income to pay the mortgage; in Invercargill it's just 31.5%.

Southland has been experiencing a shortage of rental properties, which has put pressure on rental prices as demand continues to exceed supply.

Overall, while there may well be fewer investors in the market following recent Government policy changes, there are also fewer houses available for those who are still looking. That appears to be keeping competition fierce and prices rising for now.

Suburb Snapshot

Invercargill has an urban population of around 50,000 people and 49.48% of its occupants live in rental accommodation. The median listing price for houses in the Southland region is $399,000 and this has changed 16.50% over the past year and changed 11.38% over 2 years.

The median rent in Invercargill for houses is $395 per week and the median rental yield is 5.15%. The median listing price for units is $299,000 changing 25.10% over the past year, the median rent for a unit in Invercargill is $320 per week, producing a rental yield of 5.57%.

Some areas in South Invercargill are still returning a rental yield of 6-7%, provided you are not afraid to buy a rough diamond and roll those sleeves up.

This is in spite of the current low rental price index of 2.8% for the year ending April 2021. No doubt fast rising property prices will start reflecting higher rents for our region soon, pushing up rental yields.

We have seen nothing but growth in the Southland region with lots of employment opportunities and development. A great example is the current Inner-city development with a brand-new mall and high end Langlands Hotel complex.

Considerable growth in our existing owners’ property portfolios illustrates Invercargill’s steady and strong rental investment market.

Looking for property or quality property management in Invercargill? Give Ingrid a call on 021 881120 or email our team on invercargill@propertyscouts.co.nz

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