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The Taranaki Property Market: Everything You Need to Know for 2025

January 31, 2025

Queenstown has the postcard-perfect views, and Auckland brings the hustle and bustle—but let’s be honest, the house prices in both are enough to make your wallet weep. That’s where Taranaki steps in. This west-coast gem is quietly earning its place on the radar of savvy property investors, offering a chance to get ahead without stretching yourself too thin.

Taranaki isn’t flashy, and it doesn’t need to be. It’s a region that speaks to those who appreciate balance: a thriving community, stunning natural beauty, and property opportunities that actually make financial sense. That’s why today, the team at The Rent Shop are here to walk you through why this underrated region might just be the smartest move you make this year.

What the Data Says

For investors, the numbers tell a promising tale. Over the past decade, Taranaki has shown a consistent and reliable upward trajectory in property values. The region’s median house price has nearly doubled in ten years going from $310,000 in 2014 to $590,000 by the end of 2024. 

This means the annual growth rate has been strong and steady at an impressive 6.65% each year. This isn’t just a nice-to-have; it’s a clear indicator of a market that rewards patience with solid capital gains.

Even in a shifting national property landscape, Taranaki has remained resilient. Suburbs like Waitara, with growth at 1% annually over the past two years, showcase its potential for ongoing returns. Meanwhile, areas like Manaia, which have softened slightly, present intriguing opportunities for investors ready to capitalise on undervalued properties.

With rental yields here outperforming many other regions, Taranaki is fast becoming a favourite for investors seeking balanced portfolios. Whether you’re in it for capital growth or steady rental income, this is a market with plenty of room to grow.

The Best Investment Suburbs in Taranaki

For investors, picking the right suburb is crucial to maximising returns, and Taranaki’s diverse offerings ensure there’s something for every strategy.

  • Waiwhakaiho: The premium pick for those looking to attract high-end tenants. While it commands a comparatively steep price tag at an average of $1,112,350, the demand for quality rental properties here supports stable rental yields.
  • Waitara: A standout for investors seeking affordability paired with growth potential. With a median house price under $500,000, it’s an attractive option for building a portfolio.
  • Patea: This budget-friendly suburb offers entry-level opportunities for investors willing to take on properties with room for improvement. The payoff? Stronger long-term gains and solid rental demand.

When deciding on a suburb, think about your goals: are you chasing rental yield, capital growth, or a mix of both? Taranaki’s variety ensures that whichever path you take, there’s a suburb ready to meet your criteria.

A Future-Proof Region: Taranaki’s Strategic Initiatives

Long-term investors know that growth isn’t just about what’s happening now—it’s about where a region is heading. Taranaki’s roadmap for the future is laid out in its ambitious Tapuae Roa and Taranaki 2050 plans. These initiatives aim to diversify the region’s economy, reduce reliance on traditional energy sectors, and foster innovation in areas like clean energy and technology.

For investors, this isn’t just good news—it’s an assurance. A growing, forward-thinking economy means higher employment rates, more tenants, and rising demand for quality housing. As the region invests in infrastructure and industry, property investors can look forward to a market that not only holds its value but grows alongside its community.

Taranaki vs.The Big Leagues

Auckland and Wellington might grab headlines, but let’s talk practicality. Sure, Auckland has the scale, and Wellington boasts a political hub, but with those perks come eye-watering property prices and cutthroat competition.

Taranaki, on the other hand, offers investors an opportunity to buy into a high-growth region without the constant juggling of sky-high mortgages. While Auckland investors often find themselves battling for small margins, Taranaki delivers strong rental yields with far lower entry costs. And unlike Wellington’s infamous housing shortage, Taranaki’s development-friendly approach means more opportunities for landlords to expand their portfolios.

That said, the larger cities do have their appeal for investors looking to tap into niche markets or capitalise on prestige suburbs. But for those focused on sustainable growth and broader tenant appeal, Taranaki ticks the right boxes. It’s not about competing with the big leagues—it’s about recognising that sometimes, the smartest investment is where others aren’t looking.

Why Taranaki is The Smart Choice for 2025 

In a world of expensive property markets and uncertain returns, Taranaki stands out as a breath of fresh air. Its blend of affordability, growth potential, and future-focused initiatives makes it a compelling option for investors who are ready to look beyond the usual suspects.

Whether you’re a pro investor just starting out, Taranaki offers a rare combination of opportunity and security. And with experts like The Rent Shop on hand to help manage your investment, the only thing you’ll need to worry about is deciding where to buy.

Ruari Clark
Property Manager