Student accommodation drives Dunedin market
Analysis just compiled by Bayleys Research reveals that vacancy levels at student rental houses and flats in Dunedin were now minimal, with any empty rooms often isolated to lower cost basic properties.
Bayleys Research head Gerald Rundle said many landlords were reporting their accommodation as already precommitted for 2011.
The Bayleys research shows that in 2000, older traditional student flats were rented for between $70 - $75 per room per week for 52 weeks a year, while newer purpose-built flats were achieving a slight premium with a rent of $85 per room.
"Investors were drawn into the student flat apartment market not only from a return perspective, but also on the basis that the entry cost was fairly cheap - with a four-bedroom flat collecting $75 per room per week selling for around $160,000," Rundle said.
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