by Dean Horo on Apr 09, 2026
Article appears under: Dunedin,

Dunedin Student Investments

As of late, I have had conversations with many investors wanting to delve into and understand the student investment market in Dunedin, a market they thought they would never consider because of the perceived risks.

In this market (April 2026), student investment properties are well worth considering adding to a portfolio to provide a level of diversification.

The yields are strong, student numbers are up and predicted to have a gradual increase over the next few years and most importantly, at this time, there is significant choice with an above average number of student flats for sale both on and off-market.

My experience is that out-of-town investor clients don’t tend to want to invest in the Dunedin student “melting pot”, being the party streets in and around the infamous Castle St, and I get that. The glass and rubbish on the footpath and streets can be a bit off-putting.

Most investors I talk to are however, after a bit of education around how this unique student rental market works, are open to considering investing in student properties that are walking distance to the University of Otago and Otago Polytechnic and ideal for 3rd, 4th and post-grad students who potentially, have done their time in the party zone or are “broke” (low on funds) because of the high rent they paid in their first year flatting in the “melting pot” or, they just want a better quality property to live in or maybe, they are not party people and just want to live with some mates and still live close enough to be able to walk to class.

The key to this market is delivering a quality product at a rent level below what is offered in the melting pot. Double glazed, well laid out flats with good size bedrooms and lounges tend to be very popular with student groups.

Dunedin student properties however do tend to be older, so the yields do come with having to budget for slightly higher maintenance costs but with that there is quite often scope to improve and add value to a property to increase the rent. The other main consideration, especially for out-of-town investors, is that a significant area of the student precinct is located on a low-risk flood hazard zone from the Leith Stream that runs through the campus.

Some new investors can initially be put off by the Dunedin student market when properties are often advertised for sale quoting how much a room is to rent at the property. Eg: $200pw per room. They believe this means it must be a rent by the room situation. Almost always, the students are signed up under a 51 or 52 week standard Tenancy Agreement as a group, starting early January each year. Another thing unique to this market is that the vast majority of student flats are advertised for rent by the main Property Management companies in the middle of the year, normally July and August for rent for the following calendar year. This time can be quite chaotic as student groups compete for the quality or named flats. My experience owning student investment properties has been well worth the time, effort, investment and perceived risk. Anyway, if you are keen but new to this market and need a hand to find a student property that will suit your portfolio and budget, please do reach out. There has never been as good a time to invest in this part of the market in Duno’s.