Buyers can have more confidence in the Auckland apartment market, the findings of a new report suggest, with a number of factors driving this trend. This includes much more scrutiny on the market from everyone – from the banks, from the purchasers, from the developers, and everyone who is involved is a lot more cognizant of what’s happening in the market and they really want to make sure that it’s right and that at the end of the day everyone’s happy.
The market in Auckland has not overheated, unlike in Sydney where there has been an oversupply of apartments. When you see there have been 36 new projects announced (for Auckland) there is probably still demand for apartments. About 60 per cent of the apartment supply has been in the CBD, but the report highlights there is a growing apartment profile outside the CBD into the city fringe and suburbs due to population growth and connectivity with transport.
City Sales say that if you’re trying to pick the right time to buy, sell – or just worried about the value of your assets, it can be hard to know what to expect. There is a good chance that the Reserve Bank will actually raise the minimum deposit for investors from the pre-COVID 30% back to the 40% which was in place from late-2016 to January 2018. They will be encouraged to do this because of the extraordinary development on November 24.
The Finance Minister sent a letter to the Reserve Bank Governor suggesting that they need to have a discussion about how the Reserve Bank could assist in addressing soaring house prices resulting from their aggressive easing of monetary policy since March. However, Adrian Orr indicated he might put the onus back on Grant Robertson to do more on housing affordability, including looking at tax.
As City Sales’ Scott Dunn says, “Our trends are a bit all over the place this year but we’re seeing a real sprint to the finish as auction numbers are well up in November and December. And to end on an even more positive note, we’ve acted as a team of 5 million and look where we are now – best place in the world to be”!
Special note from the team at City Sales, “We wish everyone a safe and happy, well deserved break and expect to be back in full swing by end January.
“We will be working over the Christmas break should anyone need to buy or sell”, so for more information on property management Auckland, real estate agents Auckland and apartments for sale Auckland city please go to http://www.citysales.co.nz .
