Low interest rates, high rents see more head to South Auckland

“With the Reserve Bank today holding the Official Cash Rate at 3.5%, our retail banks in an interest rates war, Auckland rents increasing, and housing demand unrelenting, we’re seeing more and more first home buyers heading to South Auckland,” says Geoff Barnett, National Manager of Century 21 New Zealand.

The Auckland-based real estate boss says his company and salespeople have experienced strong interest in South Auckland this summer, including the likes of Papatoetoe and Papakura.

“For example, Otahuhu is where Onehunga was 20 years ago. It’s up and coming. Smart investors are moving in doing up old villas beautifully and marketing them alongside Ponsonby ones for a third of the price in some cases. That’s appealing for a young couple who want a nice house now and don’t want to wait. Like Onehunga, Otahuhu is central, established, has good transport connections and plenty of character.

“With many market commentators now predicting a fall in the OCR in 2015 and further interest rate falls, many young people will be doing their sums and realising that paying a mortgage instead of rent is better particularly when you consider the capital gain.”

Mr Barnett says South Auckland’s time was always going to come given many people being effectively priced out of the rest of Auckland, improving public transport links, and greater workplace flexibility.

“The days of home buyers’ snobbing South Auckland are over!”

“What’s more there are very few areas left in the Auckland region for those who have less than half a million dollars to spend. However when you take that money to the southern end, you’ll be surprised at the really good value that can still can be found,” says Mr Barnett.

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