He recalls a recent example of a boutique inner-city apartment complex undergoing remediation planning.
Some of the owners – predominantly aged 50-plus – are unable or unwilling to fund the necessary repairs, given their stage of life and the large capital outlay for such works. Sensing this, developers began approaching the group with buyout offers, aiming to acquire the building for redevelopment.
“ Development firms wouldn’ t be circling like that if the fundamentals of the rental market weren’ t strong,” Snelling says.“ It shows that even in challenging conditions, there’ s long-term advantage and a real sense of confidence in residential investment.”
FUNDAMENTALS REMAIN SOUND
While the spotlight often falls on the difficulties – economic performance, tighter regulation, political debate – Snelling says we are well-served by recognising how far the rental sector has come.
Ray White New Zealand now manages its largest-ever portfolio: more than 23,000 investment properties, representing an asset base exceeding $ 18 billion.
“ The last seven years have been transformative,” he says.“ Yes, it’ s been tough at times, but tenants and buildings are better prepared for the future than ever. The fundamentals of investment haven’ t changed: there is perpetual demand for rental housing, and quality stock will always find an audience.”
Demand is not only sustained by younger generations who see renting as a pragmatic long-term choice, but increasingly by older generations for whom renting provides simplicity in later life.
“ Demand( for rental housing) is not only sustained by younger generations who see renting as a pragmatic longterm choice, but increasingly by older generations for whom renting provides simplicity in later life.”
Zac Snelling
Head of Property Management Ray White Group
“ With both ends of the demographic spectrum looking to the rental market, the pipeline of demand is structurally resilient.”
A LONG-TERM PERSPECTIVE
Ultimately, property investment has never been about short-term gains. It’ s about playing the long game – balancing patience with foresight and flexibility.
Snelling offers a reminder:“ Landlords must remain focused on the bigger picture. Yes, there are headwinds. But there is also an enormous opportunity if you tune into the demographic shifts, legislative improvements, and planning changes reshaping the market.
“ The narrative is not one of decline; it is evolution.”
For investors, this means focusing less on temporary noise and more on enduring fundamentals: quality housing, stable demand, and an ageing but active tenant base.
For tenants, it means greater stability, healthier homes, and a rental market that is better equipped to serve diverse needs.
As the market continues to mature, both landlords and tenants stand to benefit from a more professional, betterprepared sector.
For more information about Ray White’ s Property Management offering, visit pm. raywhite. com.
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