Regional round up: Otago and Southland
Dunedin and Invercargill have outstripped all cities around the country with average house prices up 11-12 percent during 2018 – more than triple the countrywide average of 3.5 percent gains, the Otago Daily Times reports. The Queenstown Lakes area made a 6.2 percent gain.
Dunedin's strength is being credited to active first-home buyers and investors, the latter getting higher rental yields than most other places in the country.
Quotable Value general manager David Nagel says the more affordable main centres, particularly Dunedin and wider Wellington region, continued to show a strong rate of growth in a cooling market during the final quarter of 2018.
“Dunedin, with a relatively affordable entry-level price coupled with attractive premium areas, continues to appeal to a variety of buyers,” he says.
Commercially, Dunedin is set to get a boost with the construction of a new hospital on the cards. According to the Ministry of Health (MOH), replacing the existing Dunedin Hospital will involve the single biggest hospital build ever in New Zealand – costing up to $1.4 billion.
“It will be the most modern hospital in New Zealand, serving the people of Dunedin and the lower South Island for decades to come.”
In November 2018, the MOH purchased the former Cadbury site near the existing hospital in the CBD and is in the process of acquiring a large block of neighbouring land for the 100,000 square metre new build.
“A rebuild of this magnitude in central Dunedin will have a big impact on the CBD, creating many opportunities for the community,” says the MOH. “At its peak, there will be up to 1000 workers on site.” For any business finance solutions in and around the Otago or Southland areas, contact us today.