The Auckland City Apartment market continues to see strong sales activity, nurtured by a thriving sense of market confidence.
The sales volume for our city apartments business was 27% up when compared to July 2020, reflecting a high level of positive buyer sentiment.
Investors continue to be a strong driver of sales, their confidence having returned after a brief slowing following the announcement of new investor-related regulations earlier this year. They’re reassured by the continued high demand for apartment rentals, evidenced by the vacancy rate within our rental portfolio having dropped. While rents have remained stable, in July 2021 just under 5% of our rental stock was available, compared to just over 12% in July 2020. That initial post-Covid spike in vacancy rates caused by the absence of overseas students has shrunk as local students fill those rentals.
Some new higher end city apartment offerings continue to draw downsizers and baby boomers into Auckland’s apartment market.
Meanwhile, interest from first home buyers in this market is getting stronger, particularly in the CBD and city fringe areas. Two of the major banks have now eased their apartment lending criteria to lend on smaller, one-bedroom apartments of 38sqm. This positive move will open up even more affordable options for first home buyers to get into the apartment market, which is the, arguably the most affordable way to get onto the Auckland property ladder.
Bidding remains very active at auctions with significant presence by investors and first home buyers. Our auction success rate under the hammer for July was 80%.
Strong buyer demand combined with the established trend for there to be fewer listings over the winter months is maintaining the pressure on stock levels. Buyer demand continues to exceed the number of new listings coming to the market. Meanwhile levels of buyer inquiry show no sign of ebbing, being even higher in July 2021 than in the previous month.
Keen competition for available properties is ensuring our sellers who list during this time are being well rewarded. We encourage sellers to make the most of this market dynamic of lower supply and high demand by going to the market now.
Daniel Horrobin – Director of City Realty Group
Competition Creators – Ray White NZ’s Weekly Auction Summary
Over the past week, our innovative internal data remains at the forefront as a barometer for the strength of the market and real-time accurate information.
Success has been seen right across the country this week from Auckland right through to Christchurch and beyond.
The case remains that vendors who chose to go down the path of an auction as the method of sale are again rewarded with under the hammer sale prices more than 11 per cent higher than the best offer prior.
The buyer pool remains wide as it does deep with the average registered buyers across all auctions sitting above where they did last year, while active bidders numbers should give every seller confidence on auction day due to the competition it creates.
Buyers are taking the method of sale that provides transparency in their stride, as it’s giving them confidence and curbing the perception of overcapitalising.
-Ray White New Zealand agents sold 85 percent of all auction properties last week.
-Our internal data shows that our sellers who proceeded to take their property to sell under the hammer last week were rewarded with a sale price more than 11 percent higher than the best offer prior.
-On average there were 5.0 average registered bidders per lot nationally last week. The highest number of registered bidders nationally was 20 buyers competing for 8 Rosier Road, Glen Eden, Waitakere City.
-Some 90 per cent of all auction campaigns had active bidding on the day.
Ben East – Ray White New Zealand Auctioneer