City Sales Present Their Quarterly Report

In 2017 Auckland contained 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 allowed to extend up to Warkworth and down to Huntly. I

Intensification through the Unitary Plan will promote Apartment living as the new norm, and 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. City Sales believes that there are not enough skilled tradespeople to cope with a nascent demand that will prove historically unprecedented.

This quarterly report, as follows, covers City Sales’
own transactions dating back to 2005.

Average Sale Price - Essentially the end of the supply of new apartments is on us as the banks withdraw capital to Melbourne. The wild peaks will continue as the previously non-existent $1m + market is now established. Watch the culture change particularly around Karangahape Rd.

Average $ per Square Metre - Just coming o its $10,000M2 peak the new parameters will be $8,000 to $10,000 for the foreseeable future. Take advantage.

Sales to Investors - This will also continue to spike as our new owner-occupier market grows.

Average Rent - Affordability still rules despite the rapidly increasing cost of apartments. Ardern’s new minimum wage increase will go straight to beleaguered landlords.

Average Gross Return - In NETT figures this remains at about 4% for $500,000 investments and up to 5.5% for cheaper studios, which is probably about right for now. If interest rates go up – which City Sales don’t see for some years yet – rents will have to increase.

For more information on real estate agents Auckland, new apartments Auckland and property managers Auckland please go to http://www.citysales.co.nz .