Investor-targeted listings from realestate.co.nz data have dropped 20 per cent month-on-month – from 4,728 in March to 3,765 in April this year.

At a regional level, listings targeting investors dropped 27 per cent in Auckland (from 2,093 in March to 1,521 in April); Canterbury listings dropped from 562 to 485 (14 per cent); Wellington dropped 22 per cent (314 to 244) and Otago dropped from 136 to 116, a 15 per cent decrease.

This came down from a peak a month earlier – listings targeted at investors reached 4,728 nationally in March, up from 4,641 in February; January listings were lower than April’s at 3,382 (which is seasonally typical).

Vanessa Williams, general manager of marketing and media at realestate.co.nz, says that investors are able to be more strategic with their timing than owner-occupiers.

“It wasn’t surprising to see listings targeted at investors dip in April, which was reflective of the wider market. Unlike owner-occupiers, who often need to list their homes due to lifestyle changes, such as growing families or separations, investors typically have more flexibility in their timing.”

Maximising rental returns

Larger homes (namely three or four-bedroom properties) were the most likely to be pitched at investors in Auckland.

There were 676 three-bedroom homes, and 512 four-bedroom plus properties, targeted at investors in Auckland: with only 272 two-bedroom homes and 61 one-bedroom homes.

“This likely comes down to return on investment,” says Williams.

“With house prices remaining high in Auckland, investors may be looking to maximise rental income by purchasing larger properties that can accommodate families or multiple tenants. A four-bedroom home naturally commands a higher rent than a two-bedroom, helping offset higher costs.”

The lack of one-bedroom units was notable across the country: only 105 one-bedroom units nationally were targeted at investors.

Williams says this is unsurprising.

“There is a limited pool of one-bedroom properties listed for sale across our site nationwide, so it’s not surprising that only 105 of those are being marketed to investors,” Williams shares.

“One-bedroom homes tend to be concentrated in city and city-fringe locations, and primarily in bigger cities such as Auckland and Wellington, where purchase prices can be relatively high and therefore rental yields can be less compelling.

“A good real estate agent will know their markets well and will choose their target buyers accordingly.”

Williams feels that the slow-down in investor listings might be seen as reflective of wider uncertainty in the market at present.

“What we’re seeing here may be a sign that many investors are choosing to sit tight amid ongoing global economic uncertainty, or in anticipation of potential market shifts.”

realestate.co.nz has been helping people buy, sell, or rent property since 1996. Established before Google, realestate.co.nz is New Zealand’s longest-standing property website and the official website of the real estate industry.