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Auckland Property Insight July 2019

ISSUE 158

Suburb Review – South Auckland

Rentals 

Average rents across South Auckland remain below the average for the greater Auckland region (Pukekohe to Rodney). Over the past 12 months, South Auckland 3-bedroom rentals have had an average weekly rental price of $534 – well below the average for Auckland 3-bedroom rentals at $640. Similarly, 2-bedroom rentals in South Auckland average at $442 compared to $504 for greater Auckland.

 

19Residental Property Weekly Rentals - South vs. Auck

Looking at the individual South Auckland suburbs, rental prices for 2-bedroom and 3-bedroom properties have grown between 2% and 6% over the past year. The largest shift in 2-bedroom rental prices over the past 12 months has occurred in Pukekohe (6%), whilst the largest shift in 3-bedroom rental prices has occurred in Papakura (4%), Mangere (4%) and Manukau (4%).

Residential Property Weekly Rentals by Suburb for South Auckland

Sales

Over the past two years there has been a notable plateau in sales prices in the South Auckland region. Eastern Beaches (-2%) and Papatoetoe (-2%) have experienced decreases in the average sales price in the past 12 months, whilst Papakura (1%), Dannemora–Clover Park–Flat Bush (1%) and Manurewa (4%) have all experienced slight increases.

Median Sales Prices - South
Sales volumes have been decreasing in the South Auckland suburbs over the past 4 years, but this year they have remained fairly stable when compared with last year’s figures. Papakura has witnessed the largest decrease (-12%), whilst Eastern Beaches, Papatoetoe and Dannemora–Clover Park–Flat Bush have all had 1-point fluctuations in average sales volume in the last 12 months.

Average Number of Sales - South

Crockers Property Investment Index

The Auckland Rental Property Investment Index has suffered a decline this month as a result of an increase in those looking to divest coupled with a decrease in those looking to invest in the rental property market.

Meanwhile, the Auckland Rental Property Performance Index has increased to reach its highest point since Apr-18, as a result of a continued decrease in those who believe the performance in the market will deteriorate.

Crockers Property Investment Index

Apartment Management & Investment Options

This month in our latest CPII survey in association with IPSOS, we asked investors about apartment management and investment options below is their response.

Professional Property Management – Most Preferred for Investment Apartments

When buying an investment apartment, a property management company remains the preferred option for the majority of investors. This year there has been a slight decrease in those who prefer to manage an investment apartment by themselves and an increase in those who prefer a property management company.

In interpreting these answers, we have to bear in mind that as the sample was sourced from Crockers’ newsletter recipients, a bias towards preferring property managers is expected.

YourselfOtherIf you were to buy an investment apartment, which one of these options would you consider more favourably?

Most Important Factors in Buying an Investment Apartment

The most important factors when buying an investment apartment are location (50%) and body corporate levies (17%).

ElseIf you were to buy an investment apartment, which out of the following would be the most important factor to you?

Body Corporate Factors

The level of body corporate levies (45%) is the most important factor for investors when becoming part of the body corporate, whilst being a recognised company is the next most important factor (19%).

ElseWhen buying an investment apartment, you become part of a body corporate.Which of the following body corporate factors would be most important to you?

 

Auckland Sales & Rental Update

Auckland Median Prices & Sales Numbers

The median sales price for Auckland residential properties increased from $856,000 in Apr-19 to $860,000 in May-19, sitting at a slightly higher point than the same time last year. This is the first time the median price has been higher than for the same time a year prior since December 2018.

Auckland Residential Property Sales Median Price

This month, the sales volume has exhibited the normal seasonal increase; however, it remains at its lowest point in the past 5 years for the month of May. This fall in volume is likely to have contributed to the increased median sales price.

Auckland Residential Property Sales Number

Auckland Rental Prices

The average Auckland rent for 2-bedroom residential properties increased from to $513 in Apr-19 to $521 in May-19, while the average 2-bedroom rental across New Zealand remained at $430. This has resulted in an increase in the Auckland 2-bedroom premium.

Auckland Residential Property Weekly Rentals - 2 Bedroom
The average rent for 3-bedroom properties in Auckland increased from $645 in Apr-19 to $650 in May-19, whilst the 3-bedroom rental prices in New Zealand remained at $500. This has led to a further increase in the Auckland 3-bedroom premium this month.

Auckland Residential Property Weekly Rentals - 3 Bedroom

 

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