Andrew Nicol's top investment picks for New Zealand
Andrew Nicol (pictured above), managing director at Opes Partners, is guiding investors on where to place their bets in New Zealand’s real estate market for the year 2025.
With a strategic eye on long-term gains, Nicol shared his top three cities for property investments, explaining why these locations offer promising returns despite the market's challenges.
#1 - Auckland: A market poised for recovery
Auckland tops Nicol’s list as his primary investment focus.
“Right now, my main focus is Auckland,” he said, pointing out that Auckland’s property market experienced a significant downturn, with prices plummeting by 24% from their peak.
This drop presents a unique buy-in opportunity for investors, especially given that rental yields in Auckland are now comparable to those in Christchurch – a rarity due to typically high property prices in the area.
The Auckland housing market has started 2025 on a cautiously optimistic note. Although January typically sees a slowdown, there has been a discernible increase in activity, especially within the more affordable price brackets.
Furthermore, Nicol highlighted recent regulatory changes that could restrict new developments and exacerbate housing shortages.
Increased developer contributions and stricter regulations from Watercare are expected to limit new constructions, making existing properties more valuable.
“This extra cost and paper-pushing will make building new townhouses harder and more expensive,” he said, suggesting a potential shortage that could drive property values up.
#2 - Queenstown: Cautious investment with potential
Queenstown, known for its stunning landscapes and tourist appeal, is Nicol’s cautious second choice.
He acknowledged the high demand but warned of the risks associated with overpaying for properties that rely on short-term rental income from platforms like Airbnb.
“I think that’s risky,” he said, advocating for investments that make sense as traditional rentals first, with Airbnb as a secondary option.
Nicol’s approach here is conservative, emphasising the importance of sustainable investment strategies over speculative gains.
According to Ray White, December 2024 saw a thriving Queenstown property market with rising prices and heightened activity in the dwellings sector.
#3 - Christchurch: Affordability and growth potential
Christchurch is Nicol’s third choice, primarily due to its affordability and potential for appreciation. With housing prices still below expected levels and options available well under $1 million, Christchurch offers accessible investment opportunities.
The median price of a Christchurch property is $765,011. Christchurch house prices are up 0.81% over the last three months, and they are 1.61% up over the last 12 months, making it an attractive market for both renting and future sales.
“Christchurch is still undervalued,” making it an attractive market for both renting and future sales, Nicol said.
