Auckland.

Auckland is home to the vast bulk of multi-national and national head offices in New Zealand, and almost 40 percent of residents were born outside of New Zealand. Recent years have seen enviable growth in population driven by significant net migration as the rest of the world — and returning Kiwis — have come to appreciate what Auckland has to offer and have made the city their home.

The CBD is dominated by apartments with a mix of student and investor rentals alongside “central lifestyle” properties. CBD apartments are attractive for investors for their strong rental demand and higher rental yields, and dual-key apartment options are starting to prove popular. When considering an apartment check the title of the land and the age of the building — in the past, water-tightness issues have caused major headaches, though building standards have improved significantly in recent times.

West Auckland remains a popular investment choice: lower prices than central and strong rental demand make yields more attractive. Suburbs along the Western train line — Avondale, New Lynn, Glen Eden, Henderson and Swanson — are generally good options. Multi-income properties are the common strategy for stronger yields, either by converting an existing property or by buying an investment where the work is already done. Further out, Hobsonville has made headlines after the conversion of a 167ha air force base into a sustainable Special Housing Area comprising around 4,500 townhouses and apartments, with sustained capital gains and demand that doesn’t seem to be diminishing.

South Auckland has always been a popular investment choice, due to its stronger yields, lower prices and good tenant demand. Suburbs along the Southern train line — Otahuhu, Mangere East, Papatoetoe and Manurewa — are a good option; as well as being attractive to tenants you’re also future-proofing against Auckland population growth and ongoing congestion. With prices having risen sharply in previous cycles, many home buyers have pushed further south to Weymouth, Manurewa and Papakura.

On the North Shore, properties have seen drastic capital gains and new developments continue to rise, with apartment buildings being built in Takapuna and Albany. Albany has gone from farmland to large-scale infrastructure, a Westfield mall, a Massey University campus and North Harbour Stadium in just over a decade — a great area for both student accommodation and home owners taking up jobs outside the CBD. Other sought-after investment areas include Unsworth Heights, Glenfield and Birkenhead.

To support the significant growth, Auckland Council and central government have undertaken several infrastructural projects, including the City Rail Link and ongoing transport upgrades between the city centre and the airport. High entry barriers to home ownership have retained a strong and consistent demand for rental properties across Auckland, particularly in growth areas and close to transport hubs, where premium rents are achievable. Good returns can still be had for investors willing to be creative, and buy-and-hold remains a viable strategy as the city adapts to ongoing population, infrastructural and economic growth.