The savvy housing investor in Auckland looking for the best rental yield will be heading not for blue chip Orakei but Clendon Park in South Auckland, according to figures produced by the city's biggest real estate firm Barfoot & Thompson.
In its June rental report the real estate firm says that research over the past six months "shows a strong correlation between gross rental yield and average sales price, with higher yields for lower value properties and lower yields for higher value properties".
Clendon Park has the highest rental yield of 7.4%, based on an average sales price of NZ$245,545 and an average rental of NZ$349 (three bedroom) per week.
By contrast Orakei in the eastern suburbs, which is home to the prestigious Paratai Drive, has an average gross yield of just 2.3%, based on an average sales price of NZ$1,271,486 and an average rental of NZ$569 a week.
The average gross yield across Auckland and Northland is 4%, from an average weekly rental of NZ$446 and an average sales price of NZ$584,526.
B&T says with an average sales price of NZ$585,500, Browns Bay, on the North Shore, is the suburb closest to the average sales price. Browns Bay has an average weekly rental of $501 and a yield of 4.5%.
Central Auckland, Eastern Suburbs and North Shore continue to get the highest weekly rentals across Auckland.
However, across the board, rental prices have remained static for the last three months with marginal change across all of the Auckland suburbs.
Central Auckland has the highest weekly rent for one bedroom (NZ$339) and two bedroom (NZ$453) homes, Eastern Suburbs has the highest weekly rent for three and four bedroom homes and the North Shore has the highest in five bedroom homes. South Auckland, at NZ$244, has the lowest weekly rent for one bedroom homes while Franklin/Manukau Rural has the lowest for two, three, four and five bedroom homes.