Property Markets > Dunedin

Dunedin has become a property investment hotspot for local, national and international investors and iFindProperty are thrilled to now be able to offer access to Dunedin to our clients.

The Dunedin market is a unique investment opportunity given the large student market including a significant international student population with the University of Otago and Otago Polytechnic students accounting for just over 20% of the population.

Dunedin is home to the “scarfy” (meaning Uni of Otago student) and has a tradition of offering high level tertiary learning and qualifications mixed with the chance to have a hell of a lot of fun with other likeminded young people from around NZ and the world.

Diverse accommodation options are provided to undergraduate and the growing number of postgraduate students attending the tertiary institutions including Residential Colleges (Student Halls) and Uni owned flats close to the campus for mainly 1st year and international students.

Investors have the option of purchasing and/or developing in the “melting pot” being the streets closest to the Campus on the north side for mostly 2nd year students, fresh out of a year in the Student Halls to enjoy or invest a street or two or suburb back in either direction of the Campus and provide accommodation for the slightly more decerning student being mainly 3rd to 5th year students.

Property Market 

Dunedin however is no one horse town. Dunedin and its surrounding area have had above average population growth matched with significant growth in property values and rental levels.

Dunedin Cities median house price grew by 35% over the 2-year period to February 2020. (Refer https://www.qv.co.nz/property-trends/residential-house-values )

Dunedin’s average median house price and rents are presently higher than that of the much larger city of Christchurch, for maybe the first time ever.

One of the key drivers to the recent surge in growth and now shortage of rental accommodation across the board has been the perceived positive impact and growth of the city resulting from a new Hospital being built in the city centre scheduled to begin in 2020. Added to that is the announcement by the University of Otago of significant investment in infrastructure on the campus alongside and after the Hospital rebuild.

Of interest to property developers will also be the recent adoption by the Dunedin City Council of its Second Generation Plan (2GP) which among other things has provided the opportunity for investors to develop inner city sites which previously were not zoned capable of medium density development.

Another key driver of the growth of the Dunedin non-student property market has been the explosion in tourism over the last 5 years. Dunedin averages 5,500 visitors daily, many of whom have made the trip south to see Dunedin’s renowned wildlife and heritage for themselves. A growing part of this sector is the cruise ship industry, which doubled in five years. 130 cruise ships were booked to visit the City of Dunedin via Port Chalmers for the 2020-21 Cruise Ship Season.

Obviously as a result of the COVID 19 outbreak the tourism industry has and will take a massive “hit” in NZ and Dunedin City will not be immune to this.

However, while the fallout on the Dunedin residential property market as a result of the Covid 19 Virus is unknown, many of the drivers of the growth and stability of the Dunedin rental and real estate market over the last 5-10 years remain.

Maps: Dunedin Suburbs 

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The Dunedin Team

Dean Horo

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021 366 442
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