Auckland Centrals’ third consecutive month of strong auction clearance
Another strong month in July in terms of auction clearance rates has been the third in a row achieved by Ray White Auckland Central.
Director of City Realty Group, Daniel Horrobin, says: “These continuing strong auction clearance results provide definite confirmation that Auckland’s city apartment market is bucking the trend experienced by other markets.
“July’s strong results mean we have achieved an 80% auction clearance rate over the last three months combined. And Ray White Auckland Central’ year-to-date auction clearance rate equates to a pleasing 75% over the first seven months of this year.”
The Auckland Central’ team have robust, targeted structures and processes in place around their auctions, resulting in packed auction rooms week after week and a sense of urgency and competitiveness amongst buyers.
Activity is being driven primarily by investors, predominantly those seeking apartments priced towards the lower end of the market. They express confidence that New Zealand’s re-opening to all international students and migrants from July 31 2022 will progressively drive increased demand for rental apartments in the city. (This is the first time New Zealand’s borders have been fully open to everyone, including those from non-visa waiver countries such as China and India, since they were shut to keep Covid-19 out in March 2020.)
Daniel says: “There’s definitely an expectation that the CBD will benefit from this influx of people and while it may not happen overnight it will happen over the coming months. Auckland’s CBD is a natural and convenient place for international students and for migrants to first ‘land’ and assess the lay of the land.”
Meanwhile some buyers who previously struggled to get mortgages are reportedly starting to re-apply for them, hopeful after the Government loosened somewhat lending requirements from July 7 of this year. This happened after it was judged that some of the wording of the CCFA (Credit Contracts and Consumer Finance Act) enacted on December 1, 2021 had initially resulted in credit conditions being tightened too much.
After remaining relatively level for several months, new listings in the city apartment market increased by 20% in July 2022 compared to the previous month, buoyed by evidence of positive sales results.
Ray White’s agents in the CBD have noticed an increased level of inquiry about apartments, with a lift in the last fortnight in particular. There has been a 2% decrease in the vacancy rate across their portfolio from June to July 2022. This is corroborated by Trade Me’s latest Supply and Demand Report on the Auckland rental market, showing an increase of 2.6% in the number of searches over the last four weeks compared to the previous period. This report also states a 3.7% decrease in rentals’ days on market on the site.
Daniel says the increase in inquiries, positive auction clearance rates and rise in new listings are all indicators of positive energy in the market.