Feature article

Dunedin property market has a lot to offer first home buyers

Buyers will find affordability and quality of life.

What does a perfect day in Dunedin look like? Morning beach walks at St Clair or St Kilda beach, (keeping an eye out for penguins and seals) then to the St Clair Esplanade for brunch at a cafe. And from there, a bit of shopping in the CBD, a gallery or two, and to the Octagon for an afternoon drink in the sun followed by dinner at one of Dunedin’s many restaurants. Tītī in St Clair is one of the most talked-about restaurants at the moment.

On a nice day, a cycle out to Port Chalmers and back – half-hour each way – might be just the ticket. What people love about Dunedin is the character, the beaches, and the ease of getting from one part of town to the other. If it’s affordability you’re looking for, with plenty of urban vibes to keep you city types happy, Dunedin should go straight to your shortlist.

Why live in Dunedin?

One of the benefits of living in Dunedin is going to be your commute or rather your lack of a one. If you’re working in the CBD, most parts of Dunedin take five minutes to get from A to B, claim locals.

The feedback Joe Nidd, head of Nidd Realty, hears from people moving to Dunedin from larger cities, is that they’re saving a whole workday every week if you take out a 50 minute each way commute which is pretty common in Auckland.

The weather? People give Dunedin a hard time for the weather but you go to the farmer’s market here in the winter and it’s not quieter in the summer.

“People just get on with it,” says Joe.

And you’ll have access to all the great benefits the whole Otago region has to offer; the cycling, skiing, Queenstown, and Wanaka in your backyard for weekends.

This property – 41a Mure Street, Mosgiel, Dunedin – will set buyers back 920k.

Why would you leave? says One Agency agent and local resident, Viv Patrick. “You can go 20 minutes in either direction and you’ll come across a river, lake, or sea or bush.”

Then you’ve got the cafe scene, boutique breweries, beautiful five-star restaurants, and a number of art galleries, she adds

“People are moving here, coming down for the lifestyle and the bang for buck,” says Joe. If your budget is $800,000 to $1 million, the home will have had something done, a nice new kitchen, things open up a lot in that price bracket, he says.

“We're seeing a lot of people coming down here who are earning $100,000 and living really really well with a few luxuries,” says the Nidd Realty director.

How affordable is Dunedin?

With the January median price coming in at $670,000, according to REINZ, prices have increased by 8% but homes are spending an additional 18 days on the market and there are more houses coming on at the same time.

Nidd Realty’s Joe Nidd says now is a great time to be looking. There’s much more housing stock on the market.

“It’s an excellent time to be buying. Six months ago there was a stock shortage, with an entire month’s stock clearing almost instantly. Houses are nows pending around 30 days on market (or three to five weeks) and there’s been a doubling of stock in the last few months,” says Joe.

Breathtaking views, and priced in the low 700,000s is 8 Falkirk Street, Dalmore, Dunedin.

Up and coming suburbs

When you start your search in Dunedin you’ll find you’re able to spread your net wider than in other cities.

Compared with the big cities of Auckland and Wellington, Dunedin is supremely affordable. According to local agents, first home buyers’ budgets are typically in the $400,000 to $600,000 mark in Dunedin, but if you have a bit more to spend, you’ll have some really good choices.

It’s easier to name the suburbs which aren’t seen as affordable for first home buyers than all the ones that are, says Bayleys’ agent, Rachel Jones. Dunedin’s most upmarket suburbs are:

Maori Hill
St Clair
Roslyn
Waverley
Vauxhall
Belleknowes.

Property in the more expensive suburb of Saint Clair, Dunedin.

Stunning views from your home are commonplace across the district.

Everywhere else still has pockets of homes for first home buyers, she says. First home buyers should be looking in:

Fairfield – parts are good value for money.
Brockville – she’s also sold a few homes to first home buyers recently in Brockville which is an exciting up-and-coming suburb. There’s some former state housing in Brockville that’s been bought and renovated and these homes have amazing views of the city.
Musselburgh – If you have a bit more to spend, say in the late $800,000s, early 900,000s says fellow Bayleys agent, Alice Munro, you’d be surprised at what that can buy. She’s marketing a thoroughly renovated three-bedroom, two-bathroom home with substantial double glazing, insulation, and heat pump, in the up-and-coming suburb of Musselburgh with a guide price over $839.000.
Mornington – A great spot for families on the hunt for a home. With shopping amenities, a village, access to multiple good primary schools, and good access to intermediate and high schools, it’s just four or five minutes drive from town, says Joe.
Kew – situated close to St Clair, is also a good spot, and still very affordable.
Dalmore – an area that’s starting to take off, but hasn’t yet peaked, adds Joe. It’s walking distance to the university and quite popular with people moving to the city, says the Nidd Realty director.
Mosgiel – another area to consider, says local resident and Dunedin agent Viv Patrick. Just 15km west of Dunedin, 15 minutes on the motorway, the One Agency agent says you can find a well-built 60s home in Mosgiel in the $600,000 to $700,000 price range. A new four-bedroom, two-bathroom home on a subdivision will be in the $1 million-plus price range.

133 Musselburgh Rise, Musselburgh, Dunedin.

If you can go up a bit more, a five bedroom home Joe Nidd grew up in Belleknowes is currently for sale – a home that wouldn’t look out of place in Mt Eden or Ponsonby – and it will likely sell in the early $1 million.

If you have even more of a budget, a beautifully presented home on Cliff Road in St Clair, one of the city’s top streets, will set you back around $1.5 million or so. But oh, the views.

The lifestyle

If the climate in Dunedin is slightly daunting, those draughty student flats, still fresh in your mind, Mosgiel is reportedly warmer than Dunedin.

“We are 6km from the coast, it’s such a different climate, around two to three degrees warmer,” says Viv. Sawyer’s Bay, Normanby, Fairfield, and Outram, have their own microclimates too, she adds.

For those who don’t mind being 20 minutes out of town, Port Chalmers is a nice seaside town, 15 km northeast of Dunedin which might appeal to first home buyers, says Joe. An old part of the city that was the original port, a lot of artists living in this part of town and most people in Dunedin launch their boats from there, says Joe.

Did we mention it's home to the worlds steepest street?

What can you buy new in Dunedin?

If a nicely renovated and insulated character home with central heating or heat pumps still doesn’t appeal, developers in the city are supplementing the city’s character homes with modern townhouses which could be the perfect way to start your property journey in Otago.

These new homes are hot items when they come onto the market off-plan, some selling within hours of coming onstream.

Blue Sky Property Group director, Lyndon Fairbairn, says he’ll generally put in four to seven townhouses in infill areas close to the city, amenities, schools parks, and transport routes.

Dunedin has a lot of housing stock, but not everyone wants to live in a renovated villa, says Lyndon.

Blue Sky Property’s townhouses are usually priced between $600,000 to late $700,000s and Lyndon says he makes sure they’re north-facing, with modern furnishings, parking, and above standard insulation.

In Dunedin the orientation of the house is important, says the developer.

“It’s a great place to live and has so much to offer, so get your housing right for the climate, look for sunny, nice bright living and outdoor areas,” he says.

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