City Sales Sees A Predictable End-of-Cycle Setting In

As the City Sales team sees it, the ubiquitous ‘end of cycle’ is rolling round, as predicted, meaning a gentle ‘bump’ rather than a crash is imminent, and they couldn’t be more positive about New Zealand, and Auckland in particular.

Auckland is a city heavy on demand and short on supply, particularly in the apartment market, which is exacerbated by the building shortages we are currently experiencing. Even the most well-heeled developers can’t get funding to build but still the appetite grows, with the latest immigration estimated at just over 70,000 in the past year.

The residential market is currently tempered only by a predictable ‘end of cycle’ in 2017, which was correctly predicted by City Sales. However, you don’t have to be an academic to realise that this interval is not going to last for long. The team at City Sales predict a quieter period for maybe 12 months maximum, then another steady cycle of increase beginning all over again. They also know that the market will be confused by this being an election year.

In 2017 Auckland has 400,000 dwellings, and Auckland Council states we’ll require 400,000 more inside 30 years. That is 14,000 new dwellings needed per year. The green belts of Coatesville, Brookby and Clevedon are not going to be sacrificed to housing, and the City will not be permitted to extend  up to Warworth and down to Huntly. So what is the answer? Intensification through the Unitary Plan will promote apartment living as the new norm.

City Sales predict that, “Transport congestion will precipitate a culture change of inner-city living not seen since the gentrification of the Ponsonby and Freemans Bay workers cottages in the 1970s.”

City Sales have played a key role in establishing the Auckland apartment market as a great choice for investors, first home buyers and anyone interested in affordable real estate, and they currently hold a database of 26,000 apartments across 460 buildings. They continue to reinforce their position as a leading authority in Auckland apartments, so for more information on City Sales and their city investments, please visit the website at http://www.citysales.co.nz .