31 Bayfield Road, Andersons Bay, Dunedin

31 Bayfield Road presents an exceptional investment opportunity in the sought-after suburb of Andersons Bay, Dunedin. Known for its coastal charm, established community, and proximity to the city centre, Andersons Bay offers both lifestyle and convenience. The suburb has demonstrated impressive long-term performance, with capital growth averaging 8.73% over the past 10 years and 5.27% over 20 years. Priced between $599,000 and $755,000 which puts the two bedroom homes below the suburb’s median sale price of $670,000, these homes provide immediate entry-value in a strong and steadily appreciating market.

Rental demand in Andersons Bay remains consistently high, supported by a median rent in the suburb of $600 per week and the rental appraisals coming in between $635–$755 per week, equating to a healthy gross yield of 5.1%–5.5%. Dunedin’s rental market continues to face pressure from limited supply and ageing housing stock, making new, high-quality homes especially desirable. Modern, energy-efficient dwellings like those at 31 Bayfield Road attract strong tenant interest thanks to their warmth, insulation, and low-maintenance design, features that set them apart from much of the city’s older rental inventory.

Dunedin’s future growth outlook further strengthens the investment case. The city’s population is forecast to rise steadily over the next 20 years, with thousands of new homes required to meet demand. Current projections suggest that over 7,000 additional dwellings will be needed by 2048 to accommodate expected growth, highlighting ongoing housing shortages that will continue to drive both capital appreciation and rental demand. Major infrastructure projects, including the $1.5 billion Dunedin Hospital redevelopment, University of Otago campus upgrades, and council-led transport and amenities improvements, will further boost employment and attract new residents to the region.

With its balance of affordability, quality construction, and location in a city undergoing significant renewal, 31 Bayfield Road offers investors the opportunity to secure a future-proof asset in a market positioned for sustained growth. As Dunedin continues to modernise while maintaining its strong rental fundamentals, this development stands out as a smart investment for both yield and long-term capital gains.