City Sales Report "Banks Pull the Plug"

The banks call the tune, and supply is looking ominous for a city starved of growth, and City Sales’ carefully researched supply bar chart shows it all - an effective choke-off, even if projects are largely sold. City Sales say the banks are refusing more exposure in the market and it’s going to complicate the pending settlement of completing projects.

Already, City Sales is involved in the delicate issue of multiple investors with borrowed deposits being told ‘no’ by the banks to settlement funds. Many are out of Auckland seminar attendees, and as they say, we have seen all this before. Even Dan McEwan is reported to be running property seminars again (NBR, Sept 2017), now in his 70s and operating as Robert Ewan. His lawyer told a court that after his last foray he owed $100 million.

However, City Sales’ macro view of what they have renamed Auckland Central rather than CBD, remains precise, and they believe it to be the hottest suburb in New Zealand in which to invest. You just need to deal with the most informed Brokers.

Currently the Auckland Central market is seeing sales volume significantly down on this time last year, and vendors are cautiously guarding investments as they wait to see what the election brings, whilst buyers take a firm stance as to where they see values. Brokers are working harder than ever to bring the two parties together, with stalemate being a common result.

Uncertainty often ‘pumps the brakes’ on a largely investor driven market, however City Sales sees activity returning to a familiar pace in the coming months. In 2017 Auckland contains 400,000 dwellings. 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 allowed to extend up to Warkworth and down to Huntly. Intensification through the Unitary Plan will promote Apartment living as the new norm.

City Sales predicts 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, and believes that there are not enough skilled tradespeople to cope with a nascent demand that will prove historically unprecedented.

For more information on rental properties, Auckland apartments for sale and selling apartments please go to http://www.citysales.co.nz .