With the America’s Cup on the horizon, the ongoing development of Wynyard Quarter and the Viaduct Harbour symbolises the exciting evolution of downtown Auckland. Our City Apartments team are thrilled to be part of this transformation. And, if the current level of activity is anything to go by, we can expect steady sailing going forward.
On the investment front, we’re seeing a growing resurgence of investors returning to the market since the introduction of the LVR restrictions two years ago. And on the owner-occupier front, we’re experiencing more interest in higher-end Auckland city apartments for sale as buyers seek a more relaxed, low-maintenance lifestyle.
We’ve also had a very positive month for new listings. The best bit? They’re selling quickly. With our clearance rate sitting at 87.5% and an average of 23 days on the market for our auction campaigns, the market continues to show us that buyers respond best to quality, well-marketed Auckland apartments.
So, if you want to take advantage of this vibrant activity, make sure we’re your first port of call. As the experts in buying, selling and investing in Auckland city apartments, we have the local knowledge and experience to get you what you desire. Give us a call today and let’s have a chat.
Wynyard Quarter and the waterfront upgrade – nzherald.co.nz
Auckland Council and the Government have committed $212m to upgrade the waterfront ahead of the 2021 America’s Cup, part of a series of investments into infrastructure and commercial projects totalling more than $1 billion.
The Viaduct Harbour will become the base for Team New Zealand and home to all syndicates for the regatta, and 204 Quay St will be at the forefront with the opportunity to showcase the city, harbour and its innovative sectors on a global stage.
With more than $28 billion of construction projects underway, Auckland is in the midst of heavy infrastructure investment, including the $700m New Zealand International Convention Centre, America’s Cup Village and the $3.4 billion City Rail Link.
Said Ogg: “These developments will be the most transformational project Auckland has ever seen, in turn making the city’s waterfront a stronger economic force and more attractive to residents and visitors.”
Statistics show international visitor arrivals into Auckland have increased by more than 840,000 over the past five years, with annual average growth of 7.6 per cent.
Moreover, by 2021 the inner-city’s residential population alone is projected to reach 70,000, and Wynyard Quarter will have a 5000 residents. This growth is set to drive demand for food and beverage operators in this precinct, said Ogg. “Investors are showing a preference to expand food and beverage offerings, using innovative food concepts to attract foot traffic and take advantage of the higher rents on offer, making it one of the best uses of available space.”
Property seekers get active as home lending interest rates lower – realestate.co.nz
The national average asking price has lifted in a tight market and we’ve seen all-time asking price highs in Manawatu-Wanganui, Otago and Northland regions, since records began over 12 years ago. The lowest total number of homes are for sale nationally, for the first time since 2016. New Zealanders got active on realestate.co.nz in August, with more than one million unique browsers to the site, with new users growing by more than 24.0% compared to August 2018.
This coincided with banks lowering home loan interest rates following the Reserve Bank’s cutting of the Official Cash Rate (OCR) earlier in the month. “The rates cut took the country by surprise,” says realestate.co.nz spokesperson Vanessa Taylor. “Prospective home buyers can look at the property market with fresh eyes in terms of affordability, either for a first home or for those looking to move up the property ladder with a higher level of equity.” August is typically one of the quietest months for the property market, but reports are coming in from real estate agents that it’s like an early spring in terms of buyer interest, despite the cold weather, says Vanessa.
“The feedback we’re getting from the real estate industry is that home hunters are doing their homework, looking at what they could now buy in the lower interest rate environment,” she says. “There have also been reports of a lift in the number of people attending auctions and open homes, researching the type of property they could get for their money.”
“When it comes to buying a home, affordability has always been the primary consideration for most people. The interest rate drop will be a game-changer when it comes to the range of choice,” says Vanessa. Kiwibank General Manager Borrowing and Investments Chris Greig, says the bank has certainly seen increased first home buyer activity year-on-year. “Even more so at Kiwibank which attracts first home buyers.”
“This is a direct result of lower servicing costs due to the low rate environment. Kiwibank’s 3.55% market-leading one-year rate represents the significantly lower cost of borrowing.”
CRL contract likely to boost interest in Eden Terrace – nzherald.co.nz
The CRL is a rapidly moving beast, and the Link Alliance contract is likely to boost confidence in its transformational potential. The new rail link will dramatically reduce travel times from Mt Eden station, putting it within only nine minutes of Britomart, six minutes of the new Aotea station and three minutes of the new Karangahape station.
This will increase the appeal of high-density living located within a short walking distance of the Mt Eden station. We’ve seen land price growth around major transport hubs in other cities across the world, and that’s likely to happen in Auckland too.
The Mt Eden and Eden Terrace areas are definitely the ones to watch in this regard.
Jonathan Lynch, an Associate Director of Colliers International’s Investment Sales team, who specialises in Auckland’s western fringe suburbs, says land prices are already rising in the area. Eden Terrace properties that were selling for circa $3,000 per square metre in recent years are now changing hands for $4,000 or even upwards toward $4,250 per square metre in special circumstances.
There’s still room for further price growth as the CRL progresses, so investors looking closely at the area will want to act.
Lynch says the suburb has some of the lowest density, relative to the city centre, of any of the city fringe areas.
The problem for developers is that many of these sites are quite small and fragmented. We expect to see some consolidation in the coming years as the CRL nears its 2024 completion date.