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

 

Auckland CBD Apartment Market Report released

Auckland CBD Apartment Market Report released

After extensive research and analysis property market analysts Hybrid Group Ltd have produced an in-depth report on Auckland’s CBD Apartment Market revealing the good, bad and the ugly of this unique market.

The report considers this unique markets history, current status and future prospects.

Some of the key findings about Auckland’s CBD Apartment market include:

Of the existing 11,500 apartments approx 1,500 are vacant now.

Based on an average of 1.9 people per apartment there is the capacity for a further 2,850 occupants now.

Based on conservative estimates (taking into account generous additional occupant numbers and a conservative approach to the level of new buildings still under construction) we expect a consistent level of oversupply for the next few years resulting in a decrease in rents and values for most CBD apartments, except better located and top quality apartments.

The CBD has proven a volatile property market with periods of negative capital growth of @8% per annum in 1999, 2001 and 2005 but a period of strong positive capital growth from 2002 – 2004 of @10% - 15% per annum.

CBD apartment values have achieved inferior capital growth when compared to the rest of Central Auckland over the last decade. (CBD 10 year capital growth 62% versus Central Auckland Average of 106%)

Apartment developers operate in an ‘imperfect’ market with rapid swings in demand and a long lead-in time to plan, commence and complete apartments.

The trend of average tenancy terms for CBD apartments is declining. In 2003 the average tenant term was 19.2 months but today it is 10.4 months.

The short term view for Auckland’s CBD apartment market over the next few years looks grim but the longer term view looks sound now that minimum floor size restrictions apply.

This report is available free of charge from the Hybrid Group website www.hybridgroup.co.nz

ENDS

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Paymark: Lockdown Equals Slowdown For Some

The three days of lockdown for Auckland earlier this month made a clear impression on our retail spending figures. While only Auckland moved into Level 3 lockdown, the impact was felt across the country, albeit at different levels. Looking at the ... More>>

Infrastructure Commission: Te Waihanga Releases Report On Water Infrastructure

The New Zealand Infrastructure Commission, Te Waihanga’s latest discussion document highlights the importance of current reforms in the water sector. Its State of Play discussion document about water infrastructure is one of a series looking at the ... More>>

Sci-Tech: Perseverance Rover Lands On Mars – Expert Reaction

NASA has landed a car-sized rover on the red planet to search for signs of past life. The vehicle has more instruments than the four rovers preceding it, and it’s also carrying gear that could help pave the way for human exploration of Mars. The ... More>>

ALSO:


ASB: Quarterly Economic Forecast Predicts OCR Hike As Early As August 2022

Predictions of interest rate rises have been brought forward 12 months in ASB’s latest Quarterly Economic Forecast. Chief Economist Nick Tuffley now expects the RBNZ to begin raising the OCR from its current level of 0.25% as early as August ... More>>

ACT: Matariki Almost A Half Billion Dollar Tax On Business

“Official advice to the Government says an extra public holiday at Matariki could cost almost $450 million,” ACT Leader David Seymour can reveal. “This is a perfect example of the Prime Minister doing what’s popular versus what’s responsible. ... More>>

Genesis: Assessing 6,000 GWh Of Renewable Generation Options For Development By 2025

Genesis is assessing 6,000 GWh of renewable generation options for development after starting a closed RFP process with 11 partners. Those invited to participate offer a range of technologies as Genesis continues to execute its Future-gen strategy to ... More>>

OECD: Unemployment Rate Stable At 6.9% In December 2020, 1.7 Percentage Points Higher Than In February 2020

The OECD area unemployment rate was stable at 6.9% in December 2020, remaining 1.7 percentage points above the level observed in February 2020, before the COVID-19 pandemic hit the labour market. [1] In December, the unemployment rate was also stable ... More>>

Stats NZ: Unemployment Drops To 4.9 Percent As Employment Picks Up

The seasonally adjusted unemployment rate dropped to 4.9 percent in the December 2020 quarter, from 5.3 percent in the September 2020 quarter, Stats NZ said today. Last quarter’s unemployment rate of 5.3 percent followed the largest increase observed ... More>>