Corelogic East Auckland
Kelvin Davidson, Senior Property Economist, Corelogic
1 November 2020
Rental data is sourced from the Ministry of Business, Innovation and Employment based on rental bonds lodged. This data is supplied to us grouped into geographic areas based on statistical area units used by Statistics NZ for the census and as a result do not always match well with common usage suburb names.
The rental data for each area is matched to property price information from our database to determine property prices and therefore yield. The yield is calculated as the annualised rental income divided by the median property value calculated using our E-Valuer.
The rental markets in Auckland’s eastern areas are dominated by houses, with much smaller shares of flats and apartments. Of the 744 properties for rent in these areas of Auckland, 651 have been houses (88%), with only 57 flats (8%), and 36 apartments.
In areas like Panmure, Glen Innes/ Point England/Wai O Taiki, Bucklands Beach, and Botany Downs, recent rental stock has been entirely made up of houses. Highland Park (101), Dannemora (92), and Pakuranga (75) have been the areas with the most houses recently for rent. Pakuranga and Highland Park have recently had no apartments for rent, while Dannemora has had no flats.
The most flats for rent were in Mt Wellington (14) and Howick (10), while Dannemora (16) and St Johns (9) have had the most apartments. Half Moon Bay/Farm Cove and Maraetai/Clevedon are areas of Eastern Auckland that have recently had no apartments for rent.
House Size, By Bedroom Count
Looking at houses specifically, about half of Eastern Auckland’s properties recently on the rental market have had three bedrooms, with 25% in the four-bedroom category, and 20% having two bedrooms. None have had one bedroom, and only 7% with five bedrooms. Five bedroom stock was in Dannemora (17) and Maraetai/Clevedon (11).
In the four bedroom category, the largest markets for rental houses lately have been Dannemora (39), Botany Downs (26), and Highland Park (22). Dannemora also has the highest concentration of four bedroom properties amongst its recent rental house stock (42%), followed by Glen Innes/Point England/Wai O Taiki (40%), and Botany Downs (38%). The most two bedroom rental houses have recently been available in Pakuranga (19) and Howick (17).
The largest stock of three bedroom houses is in Highland Park (63), followed by Pakuranga (39) and Botany Downs (37). The highest concentration of three bedroom properties amongst overall rental house stock is 72% in Panmure, then 62% in Highland Park, and 60% in Glen Innes/Point England/Wai O Taiki.
Rent And Yield
By matching average value to rent we can look at gross yield for three bedroom houses in each area.
Median weekly rents for three bedroom houses in Eastern Auckland range from $550 in Mt Wellington up to $770 in St Johns. The cheapest three bedroom houses are also to be found in Mt Wellington (median value of $922,900), with Panmure the only other suburb with median values <$1m. The highest value three bedroom houses are in Bucklands Beach, at $1.4m.
The highest yields on three bedroom houses is in St Johns (3.6%), while the lowest is 2.5% in Bucklands Beach. Most parts of Eastern Auckland have seen rents for three bedroom houses rise over the past year. Botany Downs and Half Moon Bay/Farm Cove are both up 5.6%; Glen Innes/Point England/Wai O Taiki up 5.2%. But St Johns had a 2.5% decline, and Mt Wellington has dropped almost 10%.