Auckland residential property the hottest ticket in town
Property prices can be a fickle creature, but there can be no doubt that Auckland values are on the march. According to QV, property prices in the City of Sails have soared once again over the three months to February. This confirms that investing in Auckland's residential property market could be a good option for savvy investors.
According to QV's house price index, national house values rose 6.4 per cent in the 12 months to February. Comparatively, Auckland values alone swelled an impressive 13 per cent over the year – and 43.8 per cent since 2007. Andrea Rush, the national spokesperson for QV, said this confirms that Auckland is once again flying comparatively solo in terms of value growth.
"The seemingly insatiable demand for Auckland property has resulted in the upward trend steepening on the QV Residential Price Movement Index," she said in a March 3 release.
Jonno Ingerson, Director of Research for CoreLogic NZ, said this is the result of a relatively simple equation – demand for property is rampant while supply is dwindling, with a pinch of low interest rates and booming migration. This provides some excellent options for property owners, particularly those looking to sell. The limited supply of new homes on the market means properties sell more quickly and, generally, for high prices.
Other regions saw more restrained growth. According to QV data, average prices in Wellington only rose 1.6 per cent in the three months to February and just 0.9 per cent over the year as a whole. Christchurch is performing relatively well, but its growth pales in comparison to Auckland – it sits just behind Wellington with prices climbing 1.3 per cent, although it showed exceptional yearly increases of 3.4 per cent.
However, investors needn't only look to central Auckland for encouraging capital growth opportunities. Though values jumped in the city's east and south by 4.9 per cent and 5.7 per cent respectively, the outer suburbs were also touched by the tendrils of growth. Waitakere City saw prices climb 6 per cent over the past three months, while the Papakura District in Manukau jumped 5.3 per cent.
Wherever you choose to start your search, property investment in Auckland is a big financial commitment, so it's important to be as prepared as possible before starting on the journey. Property investment advice from an Authorised Financial Adviser like us here at Goodlife can help you formulate realistic investment goals.
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