If you’re interested in property, you’ve probably come across plenty of generic advice about the "best places to invest.” And let’s be honest, you don't need another article telling you that Auckland's property prices are sky-high—everyone knows that. Instead, we're taking a different approach today. We're diving deeper into specific suburbs where the growth might not be as headline-grabbing but is equally, if not more, promising.
With the latest insights and some expert analysis, we're offering you something genuinely valuable that goes beyond the obvious. So, whether you're an investor on the hunt for your next opportunity, a first-time buyer trying to make your move, or just curious about where the next property boom might be, these top six suburbs are where you'll find the action in 2024.
Pukekohe, Auckland
Pukekohe is rapidly becoming a standout suburb in Auckland's ever-evolving property market. What’s driving this surge in interest? It’s the perfect blend of rural charm and urban convenience that’s capturing the attention of both families and investors. Located just south of Auckland, Pukekohe offers the tranquillity of a countryside setting with the added bonus of access to the city—a combination that’s increasingly hard to find.
But let’s talk numbers. While the median house sale price in Pukekohe has seen a slight dip over the past year, rent prices have surged by 4.8% and we’re expecting a large boom over the next year or so. This rise in rent is a clear signal of growing demand as more people look to escape the crowded and pricey inner Auckland suburbs. It’s also important to note that the suburb's expanding infrastructure plays a big part in appeal —enhanced transport links, like the electrified train line to Auckland’s CBD, are making Pukekohe more accessible than ever.
Aranui, Christchurch
Let’s face it—when you mention Aranui to most people in Christchurch, you might get a few raised eyebrows. The suburb has a reputation that often leads to it being overlooked by homebuyers and investors alike. However, one of Aranui's strongest selling points is its gross rental yield, which currently sits at an impressive 5.67%. This is significantly higher than the average yields seen in more affluent Christchurch suburbs, making it an attractive option for investors focused on cash flow.
Additionally, Aranui has achieved nearly 7% capital growth from January 2000 to June 2024. While it’s easy to dismiss this suburb due to its challenges, these numbers suggest that Aranui has the potential to continue steadily appreciating over the long term.
Of course, it’s not all sunshine and rainbows. Aranui has long had a reputation as a less desirable area, and there are risks associated with investing here. It really comes down to your risk tolerance and investment strategy. If you’re looking for a suburb where you can buy at a lower entry price, benefit from strong rental returns, and are willing to sit tight for potential long-term growth, Aranui could be worth the gamble.
New Brighton, Christchurch
New Brighton is a suburb that has truly reinvented itself, emerging as one of Christchurch's most dynamic and promising areas for property investment. Once overshadowed by its troubled past, New Brighton is now shaking off its old reputation and embracing a vibrant, "hipster" vibe that’s attracting a new wave of residents and investors alike.
The suburb's transformation is fueled by a combination of its stunning coastal location and a series of significant revitalisation efforts. New Brighton’s charm lies in its unique blend of seaside tranquillity and urban renewal, making it an attractive option for those looking for a lifestyle that offers both relaxation and convenience. The rejuvenation of the area, including the development of new public spaces and community-focused initiatives, has contributed to a sharp rise in property values—sale prices have surged by 11% over the past year, and rental income has climbed by 15%.
These trends are not just a flash in the pan; they reflect a broader movement as more people discover the suburb’s potential. New Brighton is increasingly seen as a safer and more affordable alternative to some other Christchurch suburbs (like the aforementioned Aranui), meaning that it’s great for those wanting to invest in a less risky option that still maintains ample opportunities for capital growth.
Arrowtown, Queenstown
Arrowtown is one of the crown jewels of the Queenstown-Lakes District, a suburb that effortlessly combines rich history with breathtaking landscapes. Known for its ‘Gold Rush-esque’ charm and stunning surroundings, Arrowtown has become one of the most desirable locations for both local and international buyers. Over the past four years, property values in Arrowtown have surged by an impressive 45%, a significant increase compared to the previous four years.
But what makes Arrowtown truly unique is its strict heritage protection and design guidelines. These regulations are in place to preserve the suburb’s historical character, ensuring that new developments and renovations are in harmony with the town’s storied past. While this adds to Arrowtown's charm and exclusivity, it also means that investors looking to flip houses or engage in extensive development might face challenges. The strict guidelines can limit the extent of alterations or new builds, making it a less attractive option for those hoping to quickly turn a profit through redevelopment.
Calton Hill, Dunedin
Calton Hill, a suburb nestled in Otago, may not be the first name that comes to mind when you think of top investment locations, but it's quietly making a name for itself and proving to be a hidden gem for those who know where to look.
Calton Hill offers a unique opportunity for investors who are willing to take a closer look at a suburb that doesn’t have the glitz and glamour of some of its more famous neighbours. This area is perfect for those who are looking for solid returns and long-term growth. The 8.33% capital growth over the past two decades speaks to the suburb’s resilience and potential, even in the face of broader market fluctuations. It’s a place where you can buy at a lower price point and still enjoy strong rental yields, with the current gross yield standing at a respectable 5.61%.
Calton Hill is a particularly good fit for those who are willing to hold onto their property and ride out any market fluctuations, confident in the knowledge that the area has shown consistent appreciation over time. This suburb may not have the best reputation compared to some of Otago’s more upscale areas, but that’s exactly where the opportunity lies.
Te Awamutu, Waikato
Technically this is a ‘town’ rather than a suburb, but it’s worth mentioning regardless. Located just a 20-minute drive south of Hamilton, Te Awamutu steadily gaining attention as an attractive option for homebuyers and investors alike. With a median house price hovering just over $700,000, Te Awamutu offers a more affordable alternative to nearby Cambridge, which has seen its property prices soar in recent years.
Te Awamutu’s appeal lies not just in its affordability, but also in its strategic growth plans. The local council has recognised the demand for housing, estimating that an additional 50 houses are needed annually to keep up with population growth. To support this, land has already been earmarked for a new transport corridor which signals a forward-thinking approach to the town’s development. Additionally, the council’s commitment to the area is evident in the capital works program underway, with $126.8 million allocated to improve infrastructure and amenities.
Te Awamutu is an ideal suburb for first-time homebuyers and investors seeking a more affordable entry point into the Waikato property market. It’s particularly appealing for those who have been priced out of more expensive areas like Cambridge but still want to stay within close proximity to Hamilton.
Conclusion
As New Zealand’s property market continues to shift, suburbs like Pukekohe, New Brighton, and Te Awamutu are quickly becoming the places to watch. Each offers something special, whether it’s the perfect balance of affordability and growth potential or the promise of a lifestyle that’s hard to find elsewhere. These are the suburbs where smart investors and savvy homebuyers can make their mark in 2024.
But let’s be real—navigating the ins and outs of property investment isn’t always straightforward. It’s easy to feel overwhelmed by the options, the risks, and the ever-changing market dynamics. That’s why having a trusted partner like The Rent Shop can make all the difference. With years of experience in rental management, we’re experts in providing accurate rental appraisals, securing reliable tenants, and managing your property so you can focus on enjoying the returns. We take the stress out of property management, so you can confidently invest in these promising suburbs knowing your asset is in good hands.
Ready to take the next step? Contact The Rent Shop today, and let’s turn these promising suburbs into your next success story.
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