Auckland real estate hot spots: short and long-term winners
Auckland’s real estate hot spots – short- and long-term winners
• Beachlands takes out top
spot for first half of 2017 – 64% growth in median sales
• Top 20 hot spots median sale prices up 12-64% (1H 2017 vs 1H 2016)
• Six of the top 20 also stand out for their long-term growth, measured at 5 and 10 years
The picturesque beachside suburb of Beachlands has taken out the top spot in Barfoot & Thompson’s list of ‘Top 20’ Auckland real estate hot spots. For the first half of 1017, Beachlands’ median sales price was up 64% to $1,338,500 compared with $815,000 (a difference of $522,500) for 2016. Favona, south of the Mangere inlet, was the second-hottest suburb, increasing by 37% to $835,000 from $610,000 ($225,000). The Central Auckland suburb of Parnell was third, increasing by 34% to $1,075,000 from $800,500 ($274,500).
The company’s list of top 20 suburbs is calculated using the greatest percentage of sales price growth, comparing median sale prices in each suburb during the same periods of 2017 and 2016.* It features an eclectic mix of suburbs from throughout New Zealand’s largest city, including seven on the North Shore and further north, five Eastern suburbs, four Central suburbs, three in South Auckland, and just one in West Auckland.
For the Top 20 suburbs, median sales prices were up 12-64% in the first half of 2017 from the same period the year before, with actual gains ranging between $69,000 and $522,500.
“Beachlands is an area of Auckland that many people would appreciate for its beautiful beaches, almost rural feeling, and tight-knit community. It has taken the lead from Mission Bay which previously topped the list.
“Development in the area is attracting buyers, and this is contributing to the increase in sales price,” says Peter Thompson, Managing Director of Barfoot & Thompson.
“The diverse and wide spread of the Top 20 list isn’t surprising. With strong international immigration and multiculturalism, growth and development across Auckland, and changing attitudes to lifestyles and expectations among Auckland’s population, many people are thinking beyond our historical ideas of home ownership.
“Some people are moving further out to find the space they want, whereas others are seeking shorter commute times and compact lock-up and leave housing, and others again are looking to areas with better transport options.
“It’s clear there is no one place to live, or
one type of housing that we all aspire to.”
Lower residential property sales numbers in Auckland in recent months saw average sales prices fall by 3.1% in June, compared with the previous three months.
“The first half of 2017 has seen sales prices in Auckland begin to mellow,” says Mr Thompson.
“This scenario, rather than a rapid fall, is a good outcome for both vendors and buyers. The growth in recent years has still returned strong year-on-year gains for home owners, whereas buyers are now benefiting from more choice.”
Barfoot & Thompson also used historical sales data to rank Auckland suburbs for greatest percentage sales price growth since 2012 and 2007, depicting changes over five- and 10-year periods. Ten of the current Top 20, also featured in a Top 20 position for long-term growth, while six of those ten suburbs featured on all three Top 20 lists.
Takapuna, sixth on the current list, demonstrated the third-highest growth for the five years since 2012, and was the leading performer in the decade since 2007, showing a 197% increase in median sales price over 10 years. Favona, second on the 2017 list, was fourth and seventh, respectively, for five- and 10-year growth. The other standout long-term performers were Milford, Glen Innes, Pakuranga, and Mt Wellington.
“It’s been 10 years now since the Global Financial Crisis, which was the last time Auckland saw a stalling of house prices,” says Thompson. “Property is a long-term investment that has ups and downs over time, but vendors and buyers can’t and shouldn’t necessarily time their decisions on this basis.
“It’s important people feel comfortable with their decision to sell or buy, and that they’re doing so for their own reasons or circumstances. Property performs well in the long term, whether you buy in a rising, flat or falling phase in the typical property cycle.”
Suburb spotlight – Beachlands
Russell Joblin, Barfoot & Thompson Beachlands Branch Manager, has seen Beachlands move in leaps and bounds in his 13 years in the job. He believes the stand-out value growth in Beachlands reflects Aucklanders aspiring to a sought-after mix of rural, beachside, and city living.
“Recent subdivisions in Beachlands are providing a wide range of quality properties, from large family homes to townhouses and apartments. Population growth has also seen the development of a new town centre and supermarket, which adds to the appeal.
“The transport options are also great. It’s a pleasant and relatively short 35-minute ferry ride from Pine Harbour marina to the CBD.”
During the January to June period, 58% homes sold by Barfoot & Thompson in Beachlands fetched over $1.2 million (versus just 22 percent in the comparative six-month period in 2016).
Suburb spotlight – Takapuna
Barfoot & Thompson Takapuna Branch Manager Nicky Rhodes believes that Takapuna’s diversity of properties explains why it remains one of Auckland’s most desirable suburbs to a range of buyers.
In 2017 between January and June, Barfoot & Thompson sold 34 properties in Takapuna, including 18 houses, seven units, three townhouses, and two apartments, as well as four ‘other’ types of property, ranging in value from $325,000 to over $4 million.
“Despite its reputation for multi-million-dollar luxury beachfront homes, Takapuna actually provides many accessible options for buyers. Whether residents live in an apartment, a unit, or a mansion, they all have the same access to Takapuna’s stunning beach, and the sun and sand lifestyle that goes with it.
“On top of the beach and great schools, Takapuna’s restaurant and café scene has really come into its own in the last few years, and it’s now a dining destination for people from all over Auckland. Commuters also love the easy access to the central city, Albany, and even out west.”