What’s a good rental yield in Dunedin?
Average yields by area, key suburbs, and a free calculator to analyse any Dunedin address instantly.
Calculate Dunedin rental yieldDunedin offers some of New Zealand’s highest gross yields, driven by low entry prices and strong rental demand from the University of Otago and Otago Polytechnic student population.
Approximate gross yield ranges based on REINZ median sale prices and MBIE tenancy bond median rents, 2025. Individual properties will vary.
Based on MBIE tenancy bond data, May 2026.
| Area | 1 Bedroom | 2 Bedroom | 3 Bedroom | 4 Bedroom | Approx. Gross Yield |
|---|---|---|---|---|---|
| North Dunedin (student) | ~$300/wk | ~$420/wk | ~$560/wk | ~$720/wk | 6.5–8.0% |
| South Dunedin | ~$280/wk | ~$370/wk | ~$460/wk | ~$580/wk | 6.0–7.5% |
| Mosgiel / Taieri | ~$310/wk | ~$400/wk | ~$490/wk | ~$610/wk | 5.5–6.5% |
| Roslyn / Maori Hill | ~$340/wk | ~$440/wk | ~$540/wk | ~$680/wk | 5.0–6.0% |
| St Kilda / St Clair | ~$320/wk | ~$420/wk | ~$510/wk | ~$640/wk | 5.5–7.0% |
Median weekly rents from MBIE tenancy bond records, May 2026. Student flat rents typically negotiated per room rather than whole-property weekly rates.
Why Dunedin delivers New Zealand’s highest rental yields
Dunedin is New Zealand’s most affordable main city by median price, and that affordability — combined with persistent rental demand from the University of Otago’s 20,000-plus students — produces gross yields that regularly exceed 7–9% in North Dunedin. Entry prices for student flats in North Dunedin can be below $400,000, and rents for 5–6 bedroom student houses are among the highest per-room in the country.
Beyond the student market, South Dunedin offers strong yields driven by a large working-class renter population and lower property values. Mosgiel, 15km south of the city, has grown rapidly and offers good yields with lower management intensity than the inner-city student belt.
Risks and net yield considerations in Dunedin
Dunedin’s high gross yields come with specific risks. North Dunedin student properties can have high turnover, periodic vacancy over summer, and elevated wear and tear. Management costs are higher — budget 20–25% of gross rent as expenses for student properties. South Dunedin has flood risk in some streets (the area has experienced repeated flooding events); always check flood mapping before purchasing.
For investors prioritising net yield with less management intensity, Mosgiel and the outer suburbs offer a better risk-adjusted return than the student-heavy inner-city areas.
Approximate gross yields. Source: REINZ median prices & MBIE tenancy bond data 2025.
Who should invest in Dunedin?
Dunedin offers some of the highest rental yields of any NZ city, driven primarily by the University of Otago and Otago Polytechnic — together the South Island's largest tertiary education hub. With over 20,000 students requiring accommodation, North Dunedin in particular generates exceptional yields of 6.5–8%+.
The catch: student rentals have a distinct seasonal rhythm (vacancies over summer) and higher wear. Mosgiel and suburban Dunedin offer more stable family rental demand with still-strong yields of 5.5–6.5% at very low entry prices.
- Want the highest yields of any NZ city
- Are comfortable with student tenancy management
- Have a modest budget ($350K–$550K)
- Want strong cash flow from day one
- Are targeting long-term holds near the university
- Want low-maintenance professional tenants
- Are concerned about summer vacancy periods
- Want strong capital growth prospects
- Prefer a warmer climate city
- Want a larger, faster-growing market
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