Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Auckland CBD apartment market will stay strong

October 10, 2005

Quality Auckland CBD apartment market will stay strong – Kellands forecast

Auckland’s central business district (CBD) larger apartments and heritage building market will not collapse, according to the latest study by a prominent Auckland real estate company Kellands.

Chief executive Deborah Kelland said their recent inner city heritage apartment properties resold within one year of purchase, are still producing outstanding gains for buys and investors of approximately 13 to 25 percent.

Kellands’ quarterly forecast report released today said after unprecedented growth, a combination of high-priced land, a shortage of good development sites, rising building costs and stricter urban design rules, Auckland’s CBD apartment stock is just naturally slowing.

``The product availability has really slowed because of these factors. There is next to no new product coming onto the market.’’

A summary of their recent sales shows outstanding capital gains which go against so many negative comments.

Along with a 15 percent increase on assessed rentals for “off the plans” apartments sold two years ago also demonstrates that the market place is discerning and good properties are selling and renting well.

``We have one of our buildings –Ascent in Nelson Street settling at the moment and after two years of construction, we are currently reselling those apartments showing a 7.6 to 52 percent gain to the original buyers”

Ms Kelland said the poor quality ‘little boxes’ will slump as will those rents, but there were plenty of upmarket apartments that are fetching excellent prices as people sought to live in the CBD for lifestyle reasons.”

``The city is its own neighbourhood now and with a $20 million lift to revitalise inner city streets and Auckland City’s 10 year plan with an additional $100 million in the CBD we see this continuing”

``We believe the outlook is positive. The astute end of the CBD apartment market (that our company specialises in) will continue to develop and prosper due to the lack of progress on the road programme, the rising petrol prices and the interest that tenants and owners have in brand new accommodation,’’ the report said.

Meanwhile, the recent general election was a non-event in the property market, Ms Kelland said.

``Our research into the party politics tells us that no matter which party holds the balance of power we will not see the huge drops that were
experienced in Sydney.

``Labour traditionally facilitates a strong property market as we’ve seen over the last two
years.’’

ENDS

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Air New Zealand: Capital Raise Deferred

Air New Zealand has decided to defer its planned capital raise to later in 2021 allowing more time to assess the impacts of recent developments on the airline’s path to recovery. 'We’ve seen some clearing of COVID-19 clouds recently, with ... More>>

Commerce Commission: Cartel Conduct Now Punishable By Up To 7 Years’ Jail Time

Cartel conduct can now be punished with a term of imprisonment of up to 7 years, after the Commerce (Criminalisation of Cartels) Amendment Act 2019 came into effect today. Cartel conduct includes price fixing, market allocation and bid rigging (see ... More>>

Stats NZ: Auckland Population May Hit 2 Million In Early 2030s

Auckland’s population may rise from about 1.7 million currently to 2 million by early next decade, Stats NZ said today. “Auckland will likely have the highest average annual growth of New Zealand’s 16 regions over the next 30 years, from ... More>>

Air New Zealand: Business Travellers Return To The Skies In Record Numbers

After a year of talking to a computer, Kiwis are leaving the office to re-connect with their clients, suppliers, and staff. New figures released by Air New Zealand show domestic business and corporate travel has defied global trends by returning ... More>>

PwC: Outcome Of Review Into Air New Zealand Gas Turbines Business

Air New Zealand has received the report into its Gas Turbines business from independent external advisers PwC. Air New Zealand Chairman Dame Therese Walsh says the report identified a range of effective controls in the Gas Turbines revenue contracting ... More>>

LPG Association: Renewable LPG Achieves Emissions Budgets With No Need To Ban New LPG Connections

Renewable LPG can supply New Zealand’s LPG needs and achieve the emissions reductions proposed by the Climate Commission without the need to ban new connections, a new study shows. The investigation, by leading consultancy Worley, was prepared for the ... More>>

Commerce: House Values Continue To Climb As New Government Measures Announced

The Government’s new initiatives to quell the rocketing housing market were announced last week, just as house prices hit a new high for the end of March. The average value increased 7.8% nationally over the past three-month period, up from the 6.8% ... More>>