Good news for Auckland landlords as the city’s average rental yield has risen for the first time in three years.
The average rent for three-bedroom house was $537 a week as at July 1, which equates to $27,924 a year, while the average sale price was $917,415. This gives an average gross yield of 3.04%.
It does arrest the steady decline in rental yields seen since 2014 when the city-wide average was 3.7% and was good news for rental property owners. Rental yields rose in roughly half of Auckland’s suburbs in the first half of 2017, as compared to the same period in 2016.
The upward trend was most obvious in the central suburbs – which include most of the old Auckland City suburbs west of the Southern Motorway – as well as on the North Shore.
Auckland Central itself recorded one of the best yields in the city, at 4.28% (up from 3.94%).Other top central suburb performers were Ponsonby (up to 3.19% from 2.27%), Grey Lynn (up to 3.05% from 2.58%) and Onehunga (up to 3.15% from 3.03%).On the North Shore, top performers were Rothesay Bay (up to 3.79% from 2.94%) and Albany (up to 3.38% from 3.11%).
Meanwhile, the data also showed that average in rents in Auckland have continued along a steady upwards trend.
Across the city, the average rent increased by 4.9% in the April to June quarter of 2017, compared with the same quarter the year before. The average weekly rent across all property types and locations was $531, up from $506. It is more closely aligned to people’s income and the landlord’s overheads for the property. Rent increases remain fairly consistent at or around 5%.