The last few years have witnessed the increasing prevalence of investors diversifying their portfolio across a new area. This was epitomised by Auckland investors buying 'down the road' in Hamilton and coincided with the LVR restrictions being tighter in Auckland than the rest of the country. Since the limits were re-nationalised (October 2016) this behaviour has reduced, in Hamilton and elsewhere.
For other investor types who have remained relatively narrow in their geographic coverage of investments, the clearest long-term trend is the change in activity of those investors with two properties.
This group makes up 29 per cent of all multiple property owner sales (the most of any group), consistent with the last two years, but a drop on the 33 per cent we had seen in 2012. This dropping trend in multiple property owner share is evident, but to a lesser degree with investors holding between three and five properties.
Making up for this drop in share are the big-time multiple property owners who are still a smaller part of the market, but have increased from 10 per cent in 2012 to 13 per cent in 2018 (and 14 per cent in 2017). It's likely these investors have more equity built up and can more easily access a 35 per cent (previously 40 per cent) deposit to extend their portfolio.
Ultimately though, those investors who are in it for the long term and can afford to buy where high quality tenants are resident, are continuing to do so.