5. Riccarton
Median house value: $746,800
Yield (rental return): 4.2%
How fast prices have grown: 5.5%
Riccarton is a different type of suburb from the others on this list because its rental demand is closely tied to the University of Canterbury.
The student market is a major factor. But it’s not as simple as saying Riccarton is just for students.
The team at Opes Property Management that there are different types of tenants that live in Riccarton.
For example, larger homes can suit groups who are flatting. But newer 2-bedroom townhouses often attract more mature students, postgrads, and couples. That could be where one partner is studying and the other is working.
That matters because not all student demand is the same. When people hear the phrase “student suburb”, they often think of older homes, more wear and tear, and renters moving in and out more often. But that’s not always the case.
To be fair, rental demand can rise and fall in Riccarton with the academic calendar. But you have to weigh that up against a very clear and steady source of rental demand.
If you’re buying the right type of property for the right tenant, that can work well.
