Sales

House prices boomed post covid and peaked in October 2021 at $731,000 before falling 18% and hitting the bottom in January 2023 at $620,000. Since that point, the market has recovered slightly and the average house price in Dunedin property as of August 2024 is $650,000 (CoreLogic).

Rentals

In the past four years rents have gone up on an average of 5.74% annually or by $100 per week over that time. In April 2024, the average rent in Dunedin was $500 per week (Tenancy Services). Since April we have seen the seasonally softening in demand but also an increase in supply. As such, the average rent has been dropping. It is too soon to know the exact numbers but we expect a significant drop from last year.

Anecdotally, we are seeing increased numbers of rentals available on Trademe and properties are taking much longer to fill.

How does this affect property investors?

There are a number of good deals in the market however, some are better than others. Ideally you want to get an independent rental appraisal before you buy so that you have some certainty about the yield to expect. We are happy to assist in this area either with an estimate or a formal appraisal.