Country NZ Real Estate Analytics

Property market metrics including price-to-income ratio, rental yields, and price trends

Price to Income

10.5x

Ratio of property prices to annual income

Rental Yield

3.4%

Average annual rental return

Price to Rent

29.1

Ratio of property prices to annual rent

Price to Income Ratio

Ratio of median house price to median annual household income

Rental Yield

Annual rental income as percentage of property value

Price to Rent Ratio

Ratio of property price to annual rental income

Building Permits

Number of building permits issued

Additional Insights

Expert analysis of Country NZ Real Estate trends and investment implications

Market Overview

Country NZ's property market exhibits signs of being overheated with a high price-to-income ratio, suggesting limited affordability. While rental yields are low compared to potential borrowing costs, the price-to-rent ratio indicates buying may not be economically rational at this time. The market appears to be at or near a peak cycle phase, with potential for correction if economic conditions change.

Key Findings

Data-driven insights

•The price-to-income ratio is 10.5, indicating a high level of unaffordability.
•Rental yield stands at 3.4%, which may be unattractive compared to current interest rates.
•Price-to-rent ratio is 29.1, suggesting renting may be more economical than buying.
•Building permits totaled 2,951, indicating moderate new supply entering the market.

Market Trends

Historical patterns

•Long-term price growth has been robust but shows signs of deceleration.
•Rental yields have declined over time, reducing attractiveness for income-focused investors.
•Supply constraints have historically driven prices up, but current permit numbers suggest a potential easing.

For Investors

Actionable takeaways

•Consider waiting for potential market corrections before making purchases.
•Focus on properties with yields above 4% to ensure better returns relative to costs.
•Monitor interest rate trends closely, as rising rates could impact both affordability and price growth.
•Evaluate regional markets within NZ for better affordability and yield opportunities.

Market Context

Country NZ's property market is mature, with well-documented cycles of growth and correction. Despite current challenges, it remains a significant area for investment consideration due to historical resilience and demand drivers.

💡 Insights based on historical data. Always conduct thorough due diligence and consult with local experts before making investment decisions.