CPII Survey June 2019
Auckland Median House Prices Rebound
- The median sales price for Auckland residential properties in May-19 rose to 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.
- The Auckland Rental Property Investment Index has experienced a small decline this month, although those who believe their expected rental property investment performance will deteriorate over the next 12 months has now reached its lowest point since Feb-18. Clearly rental property investment performance is seen as a stable bet at present.
- 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.
- ‘Location’ remains the most important factor for half of investors if they were to purchase an investment apartment, whilst ‘body corporate fees’ is the next important factor at 17%.
- This year there has been a 5% increase in those who prefer a property management company to manage their rental properties, possibly reflecting an increased appreciation of the work such companies do, especially as the requirements and rules for landlords and rental properties continue to become more complex.
Apartment Management & Investment Options
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.
Most Important Factors in Buying an Investment Apartment
The most important factors when buying an investment apartment are location (50%) and body
corporate fees (17%).
Body Corporate Factors
The level of body corporate fees (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
Crockers Property Investment Index
Auckland Rental Property Performance 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.