Property reporter Katharina Charles investigates buyer behaviour in Auckland and what it means for development activity with new findings released by Bayleys Research.
Saying that property purchasers have been actively snapping up homes across Auckland over the last two years is an understatement – however not all suburbs are created equal and according to Bayleys Research’s analysis of residential sales data from online valuation firm Valocity, some suburbs in particular have proven to attract the ‘lion’s share’ of activity.
The top 10 suburbs for sales activity in the past two years include:
1. Auckland Central (CBD)
7. Flat Bush
10. Mt Wellington
“One in every four residential sales across Auckland occurred in these suburbs during the past two years - showing just how popular they have been,” says Bayleys Research manager Ian Little.
“The data shows that sales turnover was greatest for apartments in Auckland Central, generating almost double the number of sales registered in the next most active suburb – Manurewa,” he adds.
Bayleys Research also analysed the sales data by the decade the property was built to understand if buyers are targeting a certain typology or age of property.
“If you bought in downtown Auckland in the past two years, you will most likely have bought an apartment and it will most likely have been built between 2000 and 2009,” Little says.
“The type of apartment built in this decade is characterised in two ways; smaller floor plate apartments along Nelson, Hobson, and Symonds Street and the top of Queen Street or larger apartments located around the Viaduct Harbour.
“By better understanding the property typology, age of construction and motivation of buyers, sellers can understand who their target audience is likely to be and gauge how much interest their property will have.
“If you recently bought in Manurewa – it is highly likely that the house was built between the 1950s and the 1970s, with two-thirds of all sales in the past two years occurring with properties built in these eras.
“Characterised by single-level, brick and tile or weatherboard, three bedroom homes - these properties have proven popular with both owner-occupiers and investors.
“In Remuera, residential premises built in the 1970s to 1990s experienced the highest level of sales turnover, reflecting Auckland’s development growth spurt in new and highly desirable locations in areas close to the city during this time.
“While buyers have been purchasing pre-owned properties with gusto, our analysis also highlights buyers do have a tendency to flock to new residential subdivisions with little hesitation,” Little says.
Flat Bush, which had the seventh highest rate of sales turnover, is a prime example.
According to the analysis, sales activity for properties built after 2000 was the highest in Flat Bush, followed by Hobsonville Point, Silverdale, Karaka and Takanini. Little says that one in five sales of residential property built from 2000 onwards occurred in these five suburbs in the past two years.
“Over and above the benefits a new home provides in terms of the latest building practices, new technology, energy efficiency and less maintenance, buyers can choose to only have a minimum 10 percent deposit, instead of 20 percent for owner-occupiers and 40 percent for investors in existing homes.
“Many buyers have been able to take advantage of the Reserve Bank of New Zealand’s (RBNZ) regulation for lower deposits needed for new premises, which can also come in the form of a bank guarantee rather than cash savings.
“This is of course a massive benefit for the new-build sector as well as potential owners,” Little says.
Recent government announcements regarding KiwiBuild, and that offshore purchasers will need to focus their attention on new, rather than existing premises is also likely to see development and sales activity within the development and project sectors ramp up over the next few years.
“There will always be buyers looking for existing property in well-established Auckland suburbs close to employment hubs, schools and hospitals.
“However, in the medium term we expect areas like Drury, Paerata, Manukau, Tamaki, New Lynn, Northcote, Long Bay, Silverdale, Whenuapai and Wainui will likely be the top 10 suburbs of the future keeping buyers busy for a number of years,” Little explains.