Heightened demand from investors in Auckland’s central apartment market is continuing, says Director of City Realty Group, Daniel Horrobin.
“We’ve even seen some pre-auction offers and auctions brought forward,” Daniel says. “That happens when investors see an opportunity and move very quickly to secure it.
“Realistically, for most investors it is all about the price point and the return on their investment. Sales in the city apartment market are dependent on vendors being willing to meet the market.”
Daniel says some people are moving away from more traditional residential investment properties, being less confident of the capital gains many used to prop up their returns. “You are getting positively geared investment apartments, in some cases with net returns of 7% – 8% achievable.
“Ray White City Group has got a really positive auction pipeline going forward.”
Daniel says the rental market for Auckland central apartments is also quite strong. And it is continuing to strengthen even more with international students returning, more migrants flowing into Auckland and a huge number of students soon to return to university.
While rental statistics have been heavily influenced by New Zealand’s covid timeline, we can see a clear difference comparing rental availability in January 2023 to January 2021. In January 2021 (which was nearly a year after covid first reached New Zealand but while the country was still operating under the Level 1 to 4 alert system) there were 1,255 properties available to rent in the city centre. In January 2023 there were far fewer – 521.
There is increased demand for AirBnb accommodation, being driven by tourists seeking short stay accommodation. “Overseas visitors are holidaying in Auckland again, the cruise ships are back, and the city has been coming alive again.”
Ray White City Group’s licensed agents are well-versed in the specifics of the Auckland city apartment market and available to advise both sellers and buyers.