Authored by the expert who managed and guided the team behind the New Zealand Property Pack
Yes, the analysis of Auckland's property market is included in our pack
Why is Auckland such a standout destination for real estate investment in 2025? Is it the strong rental yields, the vibrant urban lifestyle, or the potential for capital growth compared to other global markets? What are the key advantages for investors?
We get asked these questions all the time because we’re on the ground, working closely with developers, real estate agents, and investors like you. With so much interest in this market, we’ve decided to turn our individual answers into a comprehensive article for everyone to benefit from.
Our goal is to provide a clear case for investing in Auckland's real estate market, backed by our firsthand experience and market knowledge.
If you think we missed an important point in our content or want to know more, don’t hesitate to reach out (we answer super fast). Your feedback makes our content even stronger.
Finally, please note that this is not financial or investment advice. Investing in real estate carries inherent risks, and market conditions can change unexpectedly. We strongly encourage you to conduct thorough research and consult with a qualified financial advisor before making any investment decisions.
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1) Auckland’s thriving retail sector boosts both commercial and residential property investments
Auckland's retail sector is booming, making it a hot spot for property investors.
In the latter half of 2023, vacancy rates in Auckland's retail areas dropped to 3.8%, down from 5.8% just a few months earlier. This shows a strong demand for retail spaces, which is great news if you're thinking about investing.
Retail sales in Auckland are bouncing back too, with a 0.5% increase in early 2024. This is the first uptick after a long period of decline, signaling a healthier economy and more reasons to consider commercial property investments.
Big retail names are setting up shop in Auckland, like Christian Louboutin's flagship store in Queen’s Arcade. This not only boosts consumer spending but also makes commercial properties in the area more appealing.
Rental yields are on the rise, especially in the luxury segment. In Auckland's CBD, prime rents have hit $3,900 per square meter, with top spots going for over $5,000. This trend points to a lucrative market for those eyeing commercial properties.
Sources: Trading Economics, Colliers, JLL, MPA Mag
2) Auckland’s zoning changes boost investment potential with higher-density developments
The city's zoning changes have opened doors for higher-density developments, boosting investment potential.
In 2023, Auckland embraced a shift towards medium and high-density housing, with 62% of new homes being townhouses, flats, and units. This trend carried into 2024, thanks to the upzoning of residential land, which made it easier to build more intensive housing. As a result, there was a noticeable increase in building consents for multi-unit dwellings.
Properties in areas that were heavily upzoned saw their values soar. In the most densely upzoned parts of the Auckland isthmus, homes sold for a premium of over $90,000 compared to those in non-upzoned areas. This jump in property values clearly shows the increased investment potential in these neighborhoods.
Developers are now eyeing these high-density zones with great interest, leading to fierce competition for opportunities. This heightened competition among landowners has unlocked more development possibilities, further enhancing the investment potential of these areas.
For those considering buying property in Auckland, these zoning changes mean more than just new buildings. They represent a chance to invest in areas with rising property values and growing demand. The city's strategic planning is reshaping the landscape, making it a prime time to explore real estate opportunities.
Sources: Our Auckland, Auckland Council, Cowles Foundation
We did some research and made this infographic to help you quickly compare rental yields of the major cities in New Zealand versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
3) Auckland’s strong job market means more professionals are looking for quality homes
Auckland's job market is a magnet for professionals, thanks to its low unemployment rate of 4.6% as of June 2024.
With a bustling economy, Auckland's technology and finance sectors are booming. The fintech industry, in particular, is on fire, growing four times faster than the overall tech sector. This rapid expansion creates a vibrant business scene, drawing talent from around the globe.
Professionals are also attracted by Auckland's high median income levels. In 2023, the median household income was a solid $117,900, which is quite appealing compared to other areas like Waitematā. This financial advantage makes Auckland a top choice for those seeking better economic prospects.
Living in Auckland means being part of a city that offers not just jobs, but quality employment opportunities. The city's strong job market is a testament to its ability to attract and retain skilled workers, further fueling demand for quality housing.
For those considering a move, Auckland's dynamic job market and high income potential are compelling reasons to make the leap. The city's growth in key sectors ensures a steady influx of professionals, all seeking a slice of the economic pie.
As Auckland continues to thrive, its appeal to professionals remains strong, making it a prime location for those looking to advance their careers and enjoy a higher standard of living.
Sources: Knowledge Auckland, RNZ, Knowledge Auckland
4) Auckland’s urban regeneration projects are revitalizing older neighborhoods, increasing property values
Auckland's older neighborhoods are experiencing a remarkable transformation thanks to urban regeneration projects.
The Eke Panuku Annual Report from 2024 reveals a surplus of $27 million from its property portfolio, which is a clear indicator of rising property values in these areas. This surplus not only exceeded their target by $9.7 million but also underscores the financial benefits of these projects. The city's focus on urban regeneration is revitalizing older neighborhoods, boosting property values and making them more attractive to potential buyers.
The Auckland Unitary Plan has been pivotal in this transformation by allowing more homes to be built in upzoned areas. This has increased housing choices and property values, with about 22,000 new homes consented between 2016 and 2021 due to upzoning. These new homes account for a third of all new residential properties during that period, not only boosting property values but also improving affordability for buyers.
According to the Auckland Future Development Strategy 2023-2053 Monitoring Report, most of Auckland's growth is happening through intensification within the existing urban area. In 2022/2023 alone, 17,705 dwellings were consented, with 90% of these in the existing urban area. This trend is further driving up property values, making it an exciting time for those looking to invest in Auckland's real estate market.
Sources: Eke Panuku Annual Report 2024, Auckland Upzoning Sparks More Homes and Improved Affordability, Auckland Future Development Strategy 2023-2053 Monitoring Report
5) Auckland’s diverse economy offers stable and growing opportunities for property investments
Auckland's economy is thriving, making it a promising spot for property investment.
In 2023, Auckland's GDP grew by 4.2%, which is double the national average. This shows how Auckland's economy is not just bouncing back but is also outpacing the rest of New Zealand. Even after the Global Financial Crisis, Auckland has shown resilience, making it a stable choice for investors.
The city is a hub for industries like technology, finance, and tourism. With over 60% of New Zealand's top 200 companies calling Auckland home, the city enjoys a diverse economic base. This diversity acts as a buffer against downturns in any single sector, offering a safer environment for property investments.
Big infrastructure projects, such as the City Rail Link and East West Link, are underway. These projects are set to improve Auckland's connectivity and livability, making it an even more attractive place for businesses and workers. This, in turn, boosts demand for housing and can drive up property values.
Living in Auckland means being part of a city that's constantly evolving. The ongoing developments not only enhance the quality of life but also create a ripple effect that benefits the property market. More businesses and workers mean more demand for homes, which is great news for property investors.
Sources: Auckland Economic Monitor, New Zealand - Major Infrastructure Projects 2024
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6) Auckland’s location as a Pacific gateway enhances its economic potential
Auckland's prime spot as a Pacific gateway supercharges its economy.
The Port of Auckland is a bustling hub, with most of New Zealand's trade flowing through it. Its closeness to key international shipping lanes makes Auckland a big player in global trade. Imagine the constant movement of goods, from cars to electronics, all passing through this vital port.
Auckland Airport is another powerhouse, handling millions of travelers and billions in trade each year. It's not just about flights; it's a major entry point for tourists and business travelers, boosting the local economy. The airport's role in tourism is huge, with visitors spending big on everything from hotels to local attractions.
Foreign Direct Investment (FDI) is pouring into Auckland, making it a magnet for international business. Many local companies thrive thanks to this investment, keeping them competitive on the world stage. This influx of cash means more jobs and opportunities for locals, with many working in FDI-backed firms.
With its strategic location and robust infrastructure, Auckland is a business hotspot. Its appeal to investors is clear, as they see the potential for growth and profit. The city's vibrant economy is a testament to its ability to attract and retain global interest.
Sources: Auckland Economic Monitor, Auckland Airport Economic Contribution, BusinessNZ on FDI
7) In Auckland, limited land means property is scarce, which drives prices up
Auckland's property market has been on a wild ride, with prices soaring by nearly 25% since April 2020.
One big reason for this is the limited land available for new development within the city. When there's not much space left to build, buyers feel the pressure, and this urgency naturally pushes prices up.
Adding fuel to the fire, Auckland is seeing a huge influx of people moving in. In just one year, up to June 2023, the city welcomed 47,000 new residents, mostly from overseas. This surge in population means more people are looking for homes, which only makes the market hotter.
On top of that, Auckland's urban sprawl is tightly controlled by zoning laws. These rules make it tough to build new homes, which only adds to the housing crunch and keeps prices climbing.
So, if you're thinking about buying property in Auckland, know that the competition is fierce and the market is tight. The combination of limited land, a growing population, and strict building regulations means that prices are likely to keep rising.
For those looking to invest, understanding these dynamics is key. The city's unique challenges create a market where property values are expected to continue their upward trend.
Sources: Precise Homes, QV News
8) Auckland’s focus on sustainability can boost your property’s value
Auckland is making big moves in sustainable development, which could boost property values.
One exciting development is the city's investment in green infrastructure projects. For instance, Auckland Council has teamed up with Vector and Ecobulb to cut power bills with energy-efficient solutions, potentially saving households up to $500 a year. This not only slashes utility costs but also makes homes more energy-efficient, which can bump up their market value.
Eco-friendly building certifications are also on the rise, like the Green Star certification from the New Zealand Green Building Council. Homes with high Green Star ratings are seen as leaders in sustainability, making them more attractive to buyers who want both eco-friendly and cost-effective living spaces.
The demand for energy-efficient homes is growing, as shown by a University of Otago study. It found that better residential lighting could cut New Zealand’s winter peak energy demand, highlighting a strong consumer preference for energy-efficient living. As more people look for these homes, their values are likely to climb.
Urban green spaces are another factor boosting property prices. Studies show that being close to green infrastructure like parks and wetlands consistently raises house prices. This trend is seen not just in New Zealand but globally, proving that sustainable urban planning makes properties more desirable.
Sources: GWRC Literature Review, Green Star Certification, Vector News
We have made this infographic to give you a quick and clear snapshot of the property market in New Zealand. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
9) Auckland’s booming tech industry means more people need modern, tech-friendly homes
Auckland's tech industry is booming, creating a ripple effect on the housing market.
In 2023, New Zealand's tech sector employed over 121,000 people, with Auckland being a major player. 3,560 new tech jobs were created in Auckland alone, showing a growing demand for skilled workers. This surge is turning Auckland into a tech hub, attracting more companies and startups.
The government is backing this growth with initiatives like the Digital Transformation Roadmap, aiming to lure even more tech firms. The tech sector contributed 9% to New Zealand's GDP in 2023, making it a key part of Auckland's economy. This economic boost is reshaping the city's landscape.
Tech workers are on the lookout for modern, tech-friendly homes that fit their lifestyle. Smart home technology is gaining traction, with over 40% of New Zealanders investing in smart devices. This trend is especially strong in tech-centric neighborhoods, where property values are climbing.
These areas are close to tech companies and coworking spaces, making them attractive to tech professionals. Proximity to work and modern amenities are driving up property values. As the tech industry grows, so does the demand for housing that meets these needs.
For potential buyers, understanding this dynamic can be key to making informed decisions. Investing in tech-friendly properties could be a smart move as the industry continues to expand. The tech boom is not just about jobs; it's reshaping where and how people want to live.
Sources: NZTech, Faceted, Nucamp
10) Auckland’s booming tourism industry makes it easy to rent out your property short-term
Auckland is buzzing with tourists, thanks to a 111% jump in international arrivals at the airport in 2023.
With over 2 million international visitors landing in Auckland, the demand for short-term rentals is soaring. This influx of tourists is great news for property owners looking to rent out their spaces.
Short-term rentals in Auckland are doing well, with an average occupancy rate of 72%. During the busy season from November to March, this can spike to a whopping 96%, showing just how popular these accommodations are.
Airbnb listings in Auckland have seen a 35.86% increase from July 2023 to May 2024. This rise in listings highlights how property owners are jumping on the opportunity to cater to the growing number of tourists.
Not only are there more listings, but the short-stay rental market has also enjoyed a 13.36% boost in annual revenue. This indicates that property owners are reaping the benefits of Auckland's thriving tourism scene.
Sources: Hospitable, Road Genius
11) Auckland’s airport boosts global business and tourism, enhancing property demand
Auckland Airport has experienced a 44% surge in international arrivals, welcoming 4.6 million passengers in the latter half of 2023.
This uptick underscores the airport's pivotal role in connecting Auckland to the world, making it a gateway for global business and tourism. With 27 airlines now operating, travelers can reach 42 international destinations, bringing Auckland's connectivity close to pre-pandemic levels.
Notably, Auckland stands out as the most connected city in Australasia to North America. Seven airlines offer non-stop flights to eight major North American cities, boosting business travel and tourism.
This extensive network supports Auckland's ambition to be a global player, with direct links to key commercial hubs that facilitate international business ventures.
For those considering property investment in the area, this connectivity means increased accessibility and potential for growth in tourism-related sectors.
Sources: Auckland Airport News, Auckland Monthly Traffic Statistics, Morningstar Company Reports
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12) Auckland’s infrastructure projects, like the City Rail Link, boost connectivity and increase property value
The City Rail Link (CRL) is transforming Auckland's property market by boosting connectivity.
In 2023 and 2024, studies revealed that homes within 500 meters of a train station saw a noticeable rise in value, with the sweet spot being around 260 meters from the station. This is because living close to a train station offers easy access to transport without the hassle of noise and congestion.
The CRL has doubled the capacity of Auckland's rail network, cutting travel times and making properties near train stations more appealing. This trend is expected to continue, with property values near new stations likely to rise further. Already, homes within 500 meters of busway stations enjoy a premium of about 6.5%.
Looking at the bigger picture, the CRL is projected to add over $110 million annually to Auckland's GDP within a decade of its opening, and around $4 billion over the first 40 years. This economic boost comes from increased productivity and the benefits of agglomeration.
Improved accessibility is also expected to generate approximately $1.4 billion in additional tax revenue for the government. This makes the CRL not just a transport project but a significant economic driver for the city.
Sources: Interest.co.nz, City Rail Link Media Releases, City Rail Link Post-Construction Development
13) With excellent public transport, Auckland’s suburban homes are more attractive to buyers
Auckland's public transport network is making suburban living more appealing.
In 2024, 8.08 million people used Auckland's public transport in August alone, highlighting its growing popularity. This surge in ridership shows that more people find public transport reliable and convenient, making suburbs with good transport links a hot choice for homebuyers.
Big projects like the City Rail Link (CRL) are game-changers, set to double the rail network's capacity by 2035. This means better connectivity and easier access to the city center, which is a huge plus for suburban areas, making them more attractive to potential buyers.
Living close to a train station is a big deal. Properties within 500 meters of a station get a value boost, according to Auckland Council economists. This shows that being near public transport is a top priority for homebuyers, offering convenience and shorter commutes.
Suburban properties are becoming more desirable as Auckland's public transport network expands and improves. With more people choosing public transport, suburbs with easy access to these services are increasingly sought after.
As Auckland continues to invest in its public transport, suburban areas are likely to see even more interest from potential buyers. The convenience and accessibility offered by a strong transport network are key factors driving this trend.
Sources: Statista, Auckland Transport, Turner & Townsend, Interest.co.nz
14) With Auckland's growing population, you can count on steady rental income
Auckland's population is on the rise, with a 1.2% growth from 2023 to 2024, now totaling 1,693,000 people.
This steady increase means more folks are looking for homes, which is pushing up the demand for housing. You can see this in the rental market, where the average weekly rent in Auckland jumped by 5.69% in March 2024 compared to last year.
With more people moving in, the competition for rental properties is fierce, leading to low vacancy rates. This means if you own property, you’re likely to have tenants lined up, ensuring a steady stream of rental income.
As Auckland continues to grow, the city is expected to hit 2 million residents by 2050. This ongoing growth is a key driver for the housing market, making it a promising area for property investment.
Insiders know that Auckland's appeal isn't just about numbers; it's about lifestyle. The city offers a vibrant mix of urban and natural attractions, drawing people from all over, which keeps the housing demand strong.
For property investors, this means a reliable market where rental prices are likely to keep climbing, driven by the city's expanding population and limited housing supply.
Sources: Macrotrends, Barfoot & Thompson, Wikipedia
We made this infographic to show you how property prices in New Zealand compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
15) Auckland’s top universities draw students, ensuring a steady rental market
Auckland's top universities are a magnet for students worldwide.
With institutions like the University of Auckland and Auckland University of Technology, the city sees a bustling student scene. In 2023, over 9,000 international students joined the University of Auckland, pushing its total enrollment to more than 40,000. This influx of students means there's always a high demand for places to live.
To cater to this need, developments like the Carlaw Park Student Village have sprung up. This $250 million complex offers over 1,600 beds and is just a short walk from the University of Auckland. Such projects are a testament to the ongoing demand for student housing, aiming to fill the gap in quality student accommodations.
Auckland's housing market is also seeing a boost, with a 11.9% increase in new homes in recent years. This growth points to a stable rental market, especially in areas packed with students. Low vacancy rates in these neighborhoods show that universities are investing in infrastructure to ensure students have long-term housing options.
Sources: Edurank, Property and Build, The Rent Shop, Shiksha
16) Auckland’s multicultural vibe draws international students, making it easier for you to find renters
Auckland's vibrant multicultural scene is a magnet for international students, boosting rental demand in the city.
In 2023, Auckland universities experienced a surge in international student enrollments, reaching 29,065, marking a 21% increase from the previous year. This influx is a clear sign of recovery post-pandemic, and with more students arriving, the need for rental properties naturally rises.
These international students often pay more for rent than their local counterparts, with average weekly rents hitting $240. This not only supports the local rental market but also shows their willingness to invest in living in a diverse city like Auckland.
The New Zealand government's supportive policies for international education have been instrumental in attracting students from various backgrounds. This diversity is a big draw for students seeking a welcoming environment, further driving rental demand in Auckland.
International students contribute significantly to the economy, and their presence in Auckland is a testament to the city's appeal. The multicultural atmosphere is not just a backdrop; it's a key factor in why students choose to study and live here.
With such a dynamic mix of cultures, Auckland offers a unique living experience that international students find attractive, making it a hotspot for rental properties.
Sources: ENZ, Stats NZ, Studies Overseas
17) Auckland’s closeness to beaches and parks makes it a highly livable place
Auckland's natural attractions like beaches and parks make it a fantastic place to live.
In 2023, Auckland was ranked 10th in the Economist Intelligence Unit's Global Liveability Index, thanks to its amazing 'Culture & Environment' score. This high ranking is a nod to the city's beautiful natural surroundings and clean environment.
Locals love having easy access to beaches and parks, as noted in the State of the City report. This report highlights how important nature and biodiversity are to Auckland's charm. Being close to nature is not just pretty; it can boost your mental health and well-being, offering plenty of chances for outdoor fun.
Tourists also flock to Auckland for its natural wonders. Take the Waitākere Ranges Regional Park, for instance, with its lush rainforests, waterfalls, and unique black-sand beaches. These spots not only draw visitors but also add to the city's tourism income.
Media often spotlight Auckland's natural beauty, showing off its stunning beaches, rainforests, and parks. This coverage helps make Auckland's natural scenery a big selling point for the city.
Sources: Rova, New Zealand, State of the City 2024 Report
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18) Auckland’s safety and cleanliness make it a top choice for families, boosting housing demand
Auckland is known for being a safe and clean city, making it a magnet for families and boosting housing demand.
In 2024, Auckland's metro area population hit 1,693,000, a 1.2% rise from the previous year, showing that more families are choosing to call Auckland home. This growth is a testament to the city's appeal, especially for those seeking a family-friendly environment.
Auckland consistently ranks high in global liveability indexes, like the Economist Intelligence Unit's Global Liveability Index 2023, where it was among the top 10 most liveable cities. This ranking underscores Auckland's strengths in areas like 'Culture & Environment,' which are crucial for families looking for a safe and clean place to settle.
More families are moving to the city center, with 2,000 children now living there, indicating its growing attractiveness. The Waitematā Local Board is actively supporting projects to make public spaces more child-friendly, such as the upgrades to Myers Park Playground and Freyberg Square.
These initiatives show Auckland's commitment to being a family-friendly city, making it an even more appealing choice for families. The city's reputation for safety and cleanliness is a big draw, and these projects further enhance its family-friendly vibe.
With its strong focus on creating a welcoming environment for families, Auckland continues to attract more residents, driving up housing demand. The city's efforts to improve public spaces for children are just one example of how it's working to maintain its status as a top choice for families.
Sources: Macrotrends, Rova, Auckland City Centre Masterplan
19) Auckland’s lively arts and culture make it a highly desirable place to live
Auckland's arts and culture scene is a major draw for residents and potential property buyers alike.
In 2023, 72% of Aucklanders attended at least one arts event, highlighting the city's vibrant cultural life. This enthusiasm means there's always something exciting happening, making Auckland a lively place to call home.
Thanks to Auckland Council's Regional Arts and Culture grants, over 300,000 people enjoyed art-related activities in 2022/23. These grants have spurred the growth of art galleries and cultural institutions, enriching the city's cultural landscape.
Neighborhoods with strong cultural attractions often see rising property values. This trend indicates that people are drawn to areas rich in culture, enhancing their quality of life and making everyday living more enjoyable.
Living in Auckland means being part of a community that values and supports the arts. The city's cultural identity offers residents a fulfilling lifestyle, with endless opportunities to explore and engage with the arts.
Sources: Auckland Council Arts and Culture Research 2023, Our Auckland News 2024
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.