Auckland Property News: Real estate prices in New Zealand can only go one way with building prices doubling in the past 10 years. Real estate will continue to be a great investment long term.
Shortage of homes in Auckland is something that can’t be fixed overnight – it will take years, with the complex process and required consents associated with building and freeing up of land.
The cost of living in Auckland will be affected by rates rises, insurance costs and the recent release of a discussion paper on transport funding options to get Auckland moving. Auckland is faced with a growing population, with already congested roads and talks of road tolls and regional fuel tax growing.
Central Auckland will always be prime real estate due to the associated convenience it offers. Areas such as Ponsonby, Mt Eden, Royal Oak, Onehunga, One Tree Hill, Greenlane and Meadowbank will always be in demand. Double Grammar zones will be synonymous with premium prices.
Auckland city apartments can only go up in price as the population grows. Many young immigrants and students love the city life.
Auckland suburbs on the move price wise are Te Atatu and Avondale due to close proximity to the city. Likewise, Riverhead, Kumeu and Huapai can be expected to follow this trend now that the sewerage is being connected to these areas. This will mean increasing density of housing in various areas with close proximity to beaches, wood hill forest and quality schooling.
South Auckland, West Auckland and parts of the North Shore (i.e. Birkdale, Beach Haven, Silverdale, Rodney, Helensville, Shelly Beach, Warkworth) are areas that have been traditionally known as lower priced areas compared to the rest, but will be big movers in price due to their current affordability.
We will see higher prices in the lower price bracket of $350 – $650k across Auckland as there will be more demand from investors and first home buyers, and people trading up in this accessible price range.
Large family homes with two kitchens or separate accommodation will also be in demand as we find families joining together to purchase them i.e. sons and daughters, and their families purchasing in conjunction with their parents.
The Auckland rental market can only get stronger with many prospective tenants across Auckland negotiating for good properties and thus driving the price up to secure good homes. Demand may well out strip supply.
In the long term, the hustle and bustle and rising of costs of owning a property in Auckland may drive many to other parts of New Zealand for lifestyle and financial reasons.
Many of Auckland’s population are older people living in their homes who may have their life savings tied up in their freehold homes but are struggling to make ends meet on the pension. Higher prices in almost all areas in Auckland may be the catalyst for these people to move to regional areas, where homes are more affordable and they can have some money in the bank from the sale of their Auckland property.
For those looking to semi-retire, with today’s technology and the internet, people can work from virtually anywhere and travel to the office in the city centres a couple of days a week. Grandmas and grand dads can now easily skype their grand kids from anywhere in New Zealand.
Beach properties out of Auckland will offer good value as there is a huge selection on the market i.e. Waihi, Whitianga, Whangamata, Mangawhai Heads – great buying at present. These will be possibly targeted by people moving out of Auckland who have sold due to their affordability and close proximity to Auckland.
Leasehold properties in Auckland may appear cheap, but be wary, ground rentals are forever climbing and you only ever own the improvements.
With interest rates set to remain at low levels as the economy grows, confidence will return, as we are already experiencing in 2012.
With the global economy in turmoil, New Zealand will be seen to be a safe haven. This is backed up by the realestate.co.nz recent stats being 25% of the traffic on the web site from international viewers. Australasia seems to be more immune to the global situation.
New Zealand has the same amount of land as England and same population as Sydney. There is huge potential for population growth with quality people that will work and contribute to our great country. This will generate huge opportunities for every one of us.
Today’s market is one of opportunity, in five years we will all look back and say we should have bought real estate back then. So now is the time to act. Invest now.
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