How has the Auckland property market changed?
While it's important to keep an eye on the future when you look at property investment in Auckland, it is also useful to pay attention to the big picture, and look at how the market has changed in recent years. Ironically, looking back can give you an idea of how things might change going forward!
On this topic, Statistics New Zealand just released a large block of data detailing the housing market in the City of Sails between 1991 and 2013! This can be a great resource for looking at the swings, rises and falls in local real estate over the last 20 years.
A particular point of interest is that in the seven years between the last two censuses, Auckland's population has grown at a faster rate than the housing supply! While the number of people has grown by 8.5 per cent, the number of houses only rose by 7.6 per cent. This suggests that housing is now more scarce in Auckland, making it harder to find the right property for your needs. That's where getting the right property investment advice can work in your favour.
Rosemary Goodyear, the author of the Statistics NZ report, spoke about this in a December 17 release, picking out some of the bigger changes.
"We've found that since the 1990s, housing in Auckland has changed so much that it's now distinct from the rest of New Zealand. There are more multi-storey dwellings, lower rates of home-ownership, more renting, and house prices have risen to higher levels than in other parts of New Zealand."
With interest.co.nz reporting that the Reserve Bank's Graeme Wheeler is looking to lay off any macro-prudential controls in the future, you get a bit more agency in your property choices. Take stock of how the market has behaved, and seek out an Authorised Financial Adviser to get the most out of your investment plans.
Here's to your financial independence!
Authorised Financial Adviser / Investment Property Expert