Last updated on June 21st, 2023
best places to invest in south island nz
Key Takeaways
• The great quality of life, reasonable real estate prices, and stable tourist market in South Island have helped many Airbnb hosts to earn a good income stream.
• Discover why investing in rental properties in South Island can become a financially rewarding experience.
• We reveal the most lucrative areas in South Island along with their recommended property types, gross rental yields, and annual revenue.
Introduction
South Island, officially known as Te Waipounamu, is the major island in New Zealand, which is flanked by the Tasman Sea, Cook Strait and the Pacific Ocean. Additionally, the island is also shaped by the Southern Alps, which provides dramatic and unparalleled landscapes. Thanks to this, South Island has also turned into a popular travel destination for iconic films like The Lord of the Rings and The Chronicles of Narnia that used this stunning city as their shoot location.
The picturesque island is home to striking cities that can easily capture not only people’s eyes but also hearts with stunning sceneries and fascinating cultural attractions. Furthermore, South Island’s cities offer some interesting rental markets with promising investment opportunities
Additionally, if you’re looking to invest in rental properties in Queenstown, NZ, you’ll be pleased to know that this city has turned into a top trending global destination for 2023 international travel as confirmed by Airbnb.
If you’re thinking of starting an Airbnb business in South Island, you may be wondering which is the most profitable location for investment, right? We got you!
Here we feature the best places to invest in Airbnb in South Island, NZ. You will also discover some of the advantages of owning investment properties in this region. Continue reading to learn more!
Perks of investing in real estate in South Island, NZ
Investing in rental properties in cities located on the South Island can help real estate investors to generate a nice income stream and ultimately let them achieve the desired financial freedom.
But you may still be wondering the reason why investment properties may be profitable in South Island. Check out some of the major benefits that South Island’s cities offer:
Reasonable real estate market
It’s always a good strategy to search for locations where the housing market price is low if you’re looking to invest in real estate. While New Zealand’s housing market prices are generally high, there are still a few of them that offer reasonably priced options and can even be considered affordable. Among these markets, we can mention the cities located on South Island.
For instance, the average property price in the Otago region is $690K, $668k in Canterbury, $685K in Nelson and $289K in the West Coat.
Good quality of life
Cities in the South Island are diverse and multicultural with friendly communities that will make you feel at home as soon as you move there. Cities like Christchurch, Dunedin, and Queenstown offer a reasonable living cost –in fact, cheaper compared to the cities in North Island. Additionally, you’ll also have access to reliable public transportation, good educational institutes, affordable healthcare, and accessible amenities.
South Island’s cities are also quite safe, which allows people to explore the surroundings peacefully.
Top-tier recreation options
Are you an outdoor enthusiast? Because South Island may be your dream place as it’s regarded as a paradise for nature lovers! This island is home to glacial valleys, fjords, mountains, lakes with turquoise waters, and sandy beaches! In addition to this, South Island also offers the best wildlife observation sites. Whales, penguins, and sea lions are some of the species that give this region this particular character.
On the other hand, the South Island’s dazzling cities also offer a variety of cultural attractions. Among these cities, we can find Christchurch, Dunedin, and Queenstown which open the doors to plenty of experiences with its impressive architecture, wineries, art galleries, and much more!
Is Airbnb Profitable in South Island?
Don’t worry! Airbtics assures you that owning rental properties in South Island is a profitable investment.
South Island’s cities can indeed provide interesting investment opportunities, albeit real estate investors should also consider other factors like the property type and location to generate good gains.
Based on Airbtics’ data, an average Airbnb host can earn up to $49,292 with a median occupancy rate of 87% for managing a 4-bedroom property in the largest city of South Island, Christchurch.
Best Places to Buy Investment Property in South Island, New Zealand
While there are a variety of Airbnb host expenses to consider, the most important part that you should analyze is the property’s location.
South Island is the largest region in New Zealand and is divided into 7 regions that comprise several urban areas. If we consider this, we can conclude that the level of profitability in each area of South Island differ from one another. So, it may turn into a challenge to choose the right location for your rental property in South Island.
We’ll lend you a hand! The best areas in South Island, NZ are featured below so make sure to check them out:
1. Queenstown
- Total Number of Airbnb Listings: 1,877
- Best bedroom size: 4 bedrooms
- Median property price (4 bedrooms): $1,349,000
- Airbnb Annual revenue: $89,561
- Gross rental yield: 6.7%
2. Blenheim
- Total Number of Airbnb Listings: 143
- Best bedroom size: 3 bedrooms
- Median property price (3 bedrooms): $535,000
- Airbnb Annual revenue: $45,788
- Gross rental yield: 8.6%
3. Wanaka
- Total Number of Airbnb Listings: 712
- Best bedroom size: 2 bedrooms
- Median property price (2 bedrooms): $715,000
- Airbnb Annual revenue: $44,755
- Gross rental yield: 6.3%
4. Lake Tekapo
- Total Number of Airbnb Listings: 326
- Best bedroom size: 2 bedrooms
- Median property price (2 bedrooms): $680,000
- Airbnb Annual revenue: $43,716
- Gross rental yield: 6.4%
5. Nelson
- Total Number of Airbnb Listings: 459
- Best bedroom size: 3 bedrooms
- Median property price (3 bedrooms): $799,000
- Airbnb Annual revenue: $43,372
- Gross rental yield: 5.4%
6. Picton
- Total Number of Airbnb Listings: 107
- Best bedroom size: 3 bedrooms
- Median property price (3 bedrooms): $649,000
- Airbnb Annual revenue: $40,375
- Gross rental yield: 6.2%
7. Dunedin
- Total Number of Airbnb Listings: 493
- Best bedroom size: 3 bedrooms
- Median property price (3 bedrooms): $699,000
- Airbnb Annual revenue: $37,322
- Gross rental yield: 5.3%
8. Christchurch
- Total Number of Airbnb Listings: 1,451
- Best bedroom size: 2 bedrooms
- Median property price (2 bedrooms): $582,000
- Airbnb Annual revenue: $33,838
- Gross rental yield: 5.8%
9. Te Anau
- Total Number of Airbnb Listings: 245
- Best bedroom size: 3 bedrooms
- Median property price (3 bedrooms): $605,000
- Airbnb Annual revenue: $32,277
- Gross rental yield: 5.3%
10. Hanmer Springs
- Total Number of Airbnb Listings: 266
- Best bedroom size: 2 bedrooms
- Median property price (2 bedrooms): $667,000
- Airbnb Annual revenue: $31,313
- Gross rental yield: 4.7%
Conclusion
In summary, the South Island’s cities mentioned are profitable areas for investment properties because they offer good rental yields, annual revenue, and occupancy rates. For this reason, real estate investors can get promising investment opportunities if they’re aiming for cities located on South Island.
While knowing the best places to invest in South Island, NZ is the best way to start your investment journey, you should move forward to the next level. Check out our Airbnb calculator and improve your investment strategies by making data-based decisions!
Explore The Most Profitable Airbnb Locations in South Island
