Congratulations. If you’ re a landlord or property manager in New Zealand, you’ ve made it through one of the most significant milestones in recent rental sector history: the final deadline for Healthy Homes Standards compliance, which passed on 1 July, says Zac Snelling, Ray White Group Head of Property Management.
“ That wasn’ t just a date on a calendar; it marked a reset for the entire industry.
The standards, perceived by some as burdensome, are not aspirational. They represent the baseline of what residential rental housing should be in 2025 – safe, warm, dry, and decent.
“ As someone who speaks to landlords daily, I want to commend the property managers who worked as conduits during this period, and those who invested in their assets and took compliance seriously.
“ You’ ve done more than meet a legal requirement; you’ ve raised the bar for the entire sector.
And yet, this isn’ t the finish line – it’ s the new normal.” METRICS MATTER
Snelling recalls that shortly after his article ran in the New Zealand Herald over Matariki weekend, a landlord reached out with a seemingly simple question:“ Where can I still get a good yield, and what does that look like?”
“ It’ s a question I hear often, but one that requires a deeper answer.”
Yes, he says, yield matters.
“ As of mid-2025, gross rental yields across the country show significant regional variation, reflecting differing property values and demand dynamics.
“ Auckland remains at the lower end with typical gross yields between 2.80 per cent and 3.50 per cent, while outer suburbs may edge slightly higher.
“ More affordable centres such as Invercargill offer the highest returns, with yields of 5.50 per cent to 6.50 per cent, albeit with slower capital growth.
“ But if you’ re only chasing a static percentage, you’ re missing the bigger picture.
Instead, he advises that those playing the long game should shift focus to demand fundamentals.
“ Look at Palmerston North, where the opening of the 11.5-kilometre Te Ahu a Turanga Manawatū Taraua Highway( Palmerston North, Ashhurst, to Woodville) has reshaped regional transport and created new housing demand corridors.
“ Infrastructure drives migration, and migration drives demand. Demand drives value,” he says.
CASHFLOW HAS IMPROVED, IF YOU KNOW WHERE TO LOOK
“ Let’ s talk about what has changed. Tax adjustment, lower inflation, and easing debt servicing costs have delivered some long-overdue relief.
“ If you’ re refinancing under five per cent, rather than the 2023 peaks of seven per cent, you could be saving thousands annually.
“ Lenders, including the country’ s largest- ANZ Bank- are again offering‘ interest-only’ options, a short-term benefit that helps liquidity. But many landlords are still running their properties like a slow cooker: set and forget.
“ Landlords in the current climate are best served by agility – think air fryer, deliberate, versatile, and efficient.
“ Now is the time to refinance, revalue, and rebalance. The upside is there, but it won’ t unlock itself,” Snelling says.
“ Now is the time to refinance, revalue, and rebalance. The upside is there, but it won’ t unlock itself,” Snelling says.
Zac Snelling Head of Property Management Ray White Group
“ Christchurch continues to lead among major cities, delivering 4.30 to 5.50 per cent, while regions including Hamilton and Dunedin also perform well, supported by strong tenant demand and relative affordability.
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