Although market activity has slowed in some locations and price brackets, savvy purchasers are active and finding good buys, the data shows.
Almost 18 months ago, our in-depth analysis of the residential property market uncovered New Lynn, Birkenhead, Onehunga and areas surrounding Hobsonville as the suburbs ready to take off. Further north, Silverdale, Warkworth and Mangawhai stood out.
Property values were accelerating due to elevated buyer interest founded on the fundamentals of robust transport links, improving infrastructure, proximity to good schooling and popular amenities like commercial and retail entertainment hubs.
Echoing themes of the past year, our latest analysis highlights infrastructure – or the lack thereof, and potential plans for the future play a vital role identifying the next ‘hot' neighbourhoods.
According to Bayleys research, new suburbs to watch include; Waipu and Wainui in the north, Hingaia to the west of Papakura and Drury south.
The majority of the suburbs are expected to receive continued buyer interest due to an elevated level of sound investment principles, such as the rise in infrastructure, easier access to retail and commercial activity hubs.
The New Zealand Government recently revealed the largest ever infrastructure investment package, acknowledging the importance of reducing congestion, increasing travel and transportation options and enabling new areas of growth.
Investing in our public transport, roads, waste-water, water supply and storm water infrastructure to support the above- average population growth has been slow to come. This has limited Auckland’s ability more recently to build up and out to its borders at real pace. Satellite towns such as Warkworth and as far as Mangawhai have bene tted as a result.
Greater investment, fast-tracking infrastructure and public transport routes (both planned and under investigation) open a world of possibilities for suburbs that were once considered outside the normal urban boundaries and too far for New Zealand’s standard of commuting distances.
Only five years ago Auckland had 11 suburbs where the average sale price exceeded $1 million – now there are 123. This has shifted expectations of where satellite towns will grow and property will be attractive.
When identifying the next buyer ‘hot- spots’ Mr Coulson advises purchasers to investigate non-established suburbs handy to large-scale infrastructure projects that are at early stages of investigation or make sense from a long-term council planning and funding perspective.
Many buyers look to the suburbs already experiencing significant densification and growth as hotspots, but understanding the intrinsic value of infrastructure that’s in the pipeline is more beneficial and is an excellent indicator of the next suburbs where savvy buyers will next be active. But, time is of the essence.
The City Rail Link, which became a priority in Auckland’s spatial plan in 2012 and has an expected completion date of 2023, is already having a significant impact on the price of new and existing dwellings near proposed stations. Commuting times from the west to the city are expected to reduce by more than 20 minutes, elevating the area’s popularity significantly, more than six years before the expected completion date.
In the north, Warkworth and Mangawhai property values have benefited from the previous Puhoi Motorway Extension announcements with recent fast-tracking and funding commitment boosting the area’s attractiveness even further. The announcement in early 2017 for the investigation phase to proceed for the Warkworth to Wellsford route opens up many new growth opportunities up to and past Whangarei. In particular Wainui and Waipu are areas we predict will experience heightened activity.
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