The Next Big Property Play: Why Investors Are Moving South to Pukekohe

As Auckland continues to expand and evolve, investors are increasingly searching for suburbs that offer both affordability and long-term upside. When investors ask us where to position capital for strong long-term returns, we at Properli consistently point to South Auckland and increasingly to Pukekohe. This region isn’t just attractive because of its lower entry prices. It’s backed by favourable fundamentals: infrastructure investment, employment growth, population expansion, lifestyle appeal and value-driven opportunities.

If you’re looking for the next investment location before it becomes mainstream, South Auckland and specifically Pukekohe, deserves serious consideration.

1. Major Infrastructure and Retail Anchors Are Powering the South

One of the biggest confidence signals in the region is the arrival of major commercial investment.

Costco’s Second NZ Store Confirmed for Drury

Costco has secured a 6.4-hectare site in Drury, just north of Pukekohe, for its second New Zealand store.

Key economic impacts:

• Around $1.45 billion expected to be injected into Auckland’s economy over 11 years
• Approximately 3,420 full-time jobs projected across construction and services
• Large-scale retail and logistics activity added to the southern economic corridor

For investors, large employers and anchor retailers bring:

• More jobs
• More demand for housing
• Increased rental strength
• Capital growth over the medium term

With Drury only minutes from Pukekohe, the flow-on effects are substantial.

2. Pukekohe: A Town Positioned for a Boom

Recent reporting highlights Pukekohe as a rural-town-meets-city-fringe hub with “something for everyone” and strong indicators of future growth.

Why Pukekohe is standing out:

• Strong affordability compared with central Auckland suburbs
• A growing family and commuter demographic
• Lifestyle appeal supporting buyer and renter demand
• Increasing attractiveness for businesses, trades and logistics activity as Auckland expands south
• Proximity to major growth zones such as Drury and Paerata Rise

Pukekohe is becoming the next logical growth node in Auckland’s southward expansion. Investors entering now are buying ahead of full maturity, capturing more upside.

3. Employment and Population Growth Tailwinds

South Auckland is now one of the country’s strongest employment zones.

Key data:

• Strong growth over 20 years in industrial, warehousing, transport and office sectors
• Forecasts indicate more than 100,000 full-time equivalent jobs will be created in southern Auckland over the coming years
• Auckland gained 611,895 dwellings in the 2023 Census, an 11.9% lift from 2018
• South Auckland recorded population growth of roughly 6.3% between 2018 and 2023

What this means for investors:
More jobs, more people and more renters translate into long-term price growth and rental resilience. Areas like Pukekohe, located near major employment corridors and future development zones, benefit most.

4. Better Value and Higher Yields Compared With Central Auckland

South Auckland offers a compelling investment equation.

Auckland (Citywide) – June 2025

• Average 3-bedroom sale price: $1,005,769
• Average weekly rent: about $694
• Gross yield: approximately 3.59%

South/Manukau Fringe

• Average sale price: about $760,667
• Average weekly rent: around $782
• Gross yield: about 5.34%

Key takeaways:
South Auckland generally offers lower entry prices, stronger yields and more room for capital growth as the region continues to expand. Pukekohe fits this profile well, delivering affordability and increasing rental demand.

5. Strategic Location and Future-Proofing

South Auckland’s long-term fundamentals make it one of Auckland’s more resilient regions for investors.

Key strengths:

• Strong transport corridors including state highways, rail links and proximity to Auckland Airport
• Close access to major employment zones such as Wiri, Manukau, East Tāmaki and Drury
• Large-scale residential communities planned and underway, including Paerata Rise and Pukekohe expansion zones
• Growing retail and amenity options supporting quality of life and rental demand

South Auckland is not just an affordable region—it is positioned for long-term, sustainable growth.

South Auckland and Pukekohe in particular, offers a powerful combination of value, yield, rental strength and large-scale infrastructure tailwinds. With major economic investment such as the Costco Drury development and significant population growth expected, the region is entering a new stage of expansion.

For investors seeking a smart, sustainable and strategic addition to their property portfolio, South Auckland deserves your attention.

Properli is a fully integrated Property Investment and Development company, covering every stage of the real estate lifecycle. Our investment philosophy is data-driven not guesswork.

We help you:

• Identify the right property to invest in
• Structure and finance it to suit your needs
• Secure the right insurance
• Manage tenants with rental guarantees to minimise risk

We’re a friendly team who speak your language. Come and chat with one of our property specialists today.

References

1. 1News. (2025, November 12). Location of second NZ Costco store revealed. Link
2. Stuff.co.nz. (2025, November). Something for everyone: Why this rural town could be set for a boom. Link
3. Auckland Economic Development. Economic Place Profiles – South Auckland. Link
4. BERL. Workforce planning and job growth in Southern Auckland. Link
5. Knowledge Auckland. Dwellings and households in Auckland – 2023 Census Results. Link
6. Wikipedia. South Auckland. Link
7. Barfoot & Thompson. Market reports – June 2025. Link