Local Media

Current data shows first home buyers account for a lot of property purchases now. Debt-backed investors still have a small presence (1 in 5 deals). However these deals may involve fairly large deposits and/or getting a genuine bargain. Debt-backed investors are just biding their time. No doubt this will change once interest rates start coming back a bit. Resulting in more investors re-entering the market, it is only a matter of when.

How are the new DTI rules going to influence the market, that will be an interesting one to watch….

With these new rules coming in owner occupiers will have a ceiling added to their lending power that equals 6x the household income. Investor’s ceilings will sit at 7x their income. To illustrate with a real-life example based on an asking price of $900K property seekers will need a household income of $120K. Several property investment industry leaders tell us there is still relative strength reflected in home values for the Southland region, particularly around Invercargill.

However, an abundance of listings is having a cooling effect on the market. By reducing competition and flattening growth across the whole country. As a result, the median days a property sits has increased to 73 days.

Our motto at Propertyscouts is hang in there!

Invercargill has the population and the sustainability to continue to keep giving you good returns and provide a high-quality long-term investment. Current Invercargill prices remain one of the lowest nationally and still give you the chance to buy a bargain. In Auckland Central it takes 93.6% of one median income to pay the mortgage: in Invercargill it's just 31.5%. Invercargill has an urban population of around 50,000 people and 49.48% of its occupants live in rental accommodation. The median listing price for houses in the Southland region is $425,000. The median rent in Invercargill is $420 per week and the median rental yield is 5.15%. Some areas in South Invercargill are still returning a rental yield of 6-7%, provided you are not afraid to buy a rough diamond and roll those sleeves up. Over the past few years fast rising property prices have been reflected in higher rents for our region pushing up rental yields or at worst keeping them at the same levels.

Overall, while there may well be fewer investors in the market following recent cost rises, interest rate changes and added pressure from stricter financing guidelines, we think 2025 has changes are on the horizon….

Looking for property or quality property management in Invercargill?

Give Ingrid a call on 021 881120