Auckland Apartment Report – New Year 2023

The New Year is upon us and it’s a busy start in the Auckland central apartment market for City Realty Group says Director Daniel Horrobin.

Daniel says: “Investors are keeping a keen eye out for productive opportunities, there are good stock levels available, good numbers of auctions scheduled and demand for rentals is really picking up. After a strong finish to 2022 the momentum has carried over into the New Year with the signs encouraging it will continue through 2023.

“The city apartment market often bucks the trends and although it is only early in the year, I believe there’s an active year ahead of us.”

He says there were even a decent number of sales over the couple of weeks which most Kiwis consider to be the Christmas break. About 70% of activity in the central Auckland apartment market is driven by investors, who tend to be alert to opportunity whatever the time of year.

With some vendors selling apartments because of other priorities and vendor expectations having become more realistic, savvy investors are active. This especially applies in the sub-$350,000 apartment segment. Investors are well aware that good buying can achieve superior yield percentages.

Demand for rentals is picking up and with both international and domestic tourism flourishing again, there has been a big upsurge in the popularity of AirBnB properties.

Daniel describes the high level of demand recently to rent a two bedroom CBD apartment of about 40 square metres, without parking asking $450 per week.

“We had around 70 applicants lining up to rent it, 95% of whom would be described as really good quality tenants.
“Young professionals are amongst those wanting to rent apartments, as are students. And with the borders opening up, we are getting more and more inquiries and rental vacancy rates are going down.”

Ray White Auckland Central licensed agents have their fingers on the pulse of the market and are ready to help both sellers and buyers on their property journey.