Owner occupiers own about a third of all Auckland apartments. The other two thirds of apartments are owned by property investors and the huge jump in asking price (up 25% in 12 months) is welcomed news.
In an article on NZHerald Martin Dunn of City Sales says:
“In Auckland, the buyer’s market starts around the $500k mark, which will get you an ordinary house in suburbs like Mangere, Birkdale and Papatoetoe. But for substantially less in the city it can get you onto the property ladder into a new, secure apartment.”
Property investors have enjoyed the lion’s share of apartment ownership up to now but this is expected to change over the coming years. More apartments will come into the market and owner occupiers will be competing with investors to secure them. The competition will also continue to push up the values of sought after apartments in premium locations.
John Key said soon after the Election First Home Buyers should look at apartments as a means of getting onto the property ladder. Apartments are not the shoe boxes of yesteryear so they do meet the needs of owner occupiers.
In the same article another Real Estate Agent suggests Auckland Apartments are undervalued and they will continue to catch up to the rest of the property market in Auckland.
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