During the month of October the Auckland apartment market was certainly not exempt from the heated New Zealand property market with our City Apartments team delivering another outstanding result, 63 per cent up on October 2019.
Fuelled by record low interest rates and with a significant lift in apartment rental enquiry, confident investors have started to flock to the apartment scene, seeking the traditionally high yields on offer in Auckland’s largest city.
Whilst there have been some previous concerns around a lift in the number of available rental units due to many international students heading home, our SuperCity Rental Management team have been experiencing an encouraging lift in enquiries as local tenants continue to drive demand and competition for well-presented apartments. Please make sure to sign in online for Ray White’s latest online Rent Academy Series running through November.
As investors arrive from the suburbs, we’ve seen this put significant upwards pressure on demand with fierce competition among investors and first home buyers in our auction room, which is very encouraging.
It’s been extremely encouraging to see an ongoing lift in first home buyers entering our market with particular interest in the CBD and city fringe areas such as Eden Terrace, which represent extremely good value for first home buyers.
The property sector is red-hot right now and the Auckland apartment market continues to gain momentum, so if you’re considering taking advantage of the current activity and reaping the rewards of some of the country’s highest net yield investments, we urge you to act quickly in order to make the most of the current favourable LVR situation and interest rates.
What are you waiting for?
Is this the start of a new house price boom? – oneroof.co.nz
Is the property market heading back into boom territory? “Looking at previous cycles does little to provide clarity on where the market may be heading, but conditions are very favourable for those considering selling. Lending is available at very favourable rates, banks are generally supportive of property purchases, rental yields are strong in many cases and first home buyers are very active.” Daniel Coulson
What gives you cause for concern right now? “I wouldn’t be using price as the only indication of affordability. Yes, prices in general are higher than this time last year, but borrowing money is also significantly cheaper. There are a few factors that can impact the affordability of property, not just an asking price.” Daniel Coulson
Ray White NOW 24th Edition – Carey Smith Ray White NZ Chief Executive
This week there is good news for both those considering selling their property and those considering purchasing. The latest report produced by realestate.co.nz shows that national listings were up 13.8 per cent, while Auckland has surged forward with new property listings being up 36.8 per cent in comparison to the same time last year.
This effectively means there is more choice for purchasers to consider while sellers are able to compare their property to other property. Although the market continues to be in the favour of the seller while premium prices are still very much evident across the majority of markets.
Ray White New Zealand this week completed a record sales month for October with $1.644 billion worth of sales which was an increase of 83.6%t on the same time last year while the sales numbers surged to 2,031, up 50.6 per cent in October 2019. In other news, the latest Reserve Bank monthly mortgage figures show over $7.3 billion worth of advances for mortgages in September. Of interest, first home buyers hit a record high and high LVR lending to investors also increased.
Looking at Ray White results for the past month, the number of new listings during the past 28 days is 2,244, up 13.85 per cent on last year. While the number of sales continues to surge forward in comparison to this time last year, being 1,685 up 39.80 per cent. The disparity between the number of new listings coming to the market and the depth of the buyer pool remains in favour of the seller. This is seeing premium prices across all markets where competition is created.
If I am considering selling, why should I go to market now? Those that have reasons to transact now and will take advantage of the current conditions. While those that are more risk averse may wait for circumstances to return to some level of normalcy, though it should be noted that this is likely a few years away.
Whilst investors are active at the moment, it should be noted that if the Reserve Bank of New Zealand were to reintroduce restrictions around LVR amounts this could have a cooling effect on the wider market. The RBNZ is set to review these restrictions in May 2021, but has signalled that this could happen sooner due to the current levels of activity in the residential lending sector. Just as a rapidly improving market can catch buyers, sellers, and commentators off-guard, as we have recently experienced; it can also change course again without a great deal of warning. There are several factors in the wider economy that are supporting confidence at present, but it is also important to be aware of potential impacts on the market later in the year and into 2021.
Read the full Ray White Now report here: raywhite.co.nz/ray-white-now/