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WELLINGTON CBD APARTMENTS

Top End Value Continues To Rise

The median sale price for Wellington CBD apartments has risen approximately 30% over the past five years from $240,000 in the June quarter 2001 to $310,000 in the June quarter 2006.While this is below the growth in the national median price for residential sales, it reflects the predominance of 1-2 bedroom units in the apartment mix. The top end of the market, defined by Bayleys Research as the top 15% of sales by value, has experienced growth in the median sale price of approximately 72% in the last five years rising from $446,000 in the June 2001 quarter to $765,000 in the June 2006 quarter.

The growth over the last 5 years in the New Zealand apartment market median price has been approximately 50% compared with the 30% experienced in Wellington’s CBD. The Auckland CBD apartment median has experienced growth of around 44% over the same period. The sales median for the Auckland central apartment market is at $270,000 for the quarter to June, some 14% lower than the Wellington CBD sales median. This is perhaps a reflection that the Wellington market has significantly less lower end accommodation than Auckland.

Relating the sale price of the apartment to size can be achieved by looking at the value over the area of the apartment which gives a $/m² rate. The usual range in Wellington would be anywhere from $3000/m² to $8000/m². At the top end of the scale, there have been a number of sales completed recently that have sold around the $10,000/m² range. The recent sale of the penthouse suite in the Museum apartments at over $3.1 million equates to a net rate of over $12,000/m². The Chaffers Dock apartments have also been selling very strongly at resale after they were initially purchased a couple of years ago from the plans, reportedly up around the $12,000/m² plus mark. Apartments at the top end of the market are generally well designed with quality fitouts and larger floor plates, commonly around 125m². Apartments at the top end of the market are generally those with sea views along the waterfront and in Oriental Bay, with apartments in the Portal, Chaffers Dock and the Museum complex all falling into this category. High sale prices, however, are not always limited to those with sea views. The apartments on the Parliament side of the Kate Shepherd complex are also achieving high prices with views of Parliament grounds, buildings and the Beehive being the obvious attraction.