Is there a property market in Auckland that isn’t doing well? – I don’t think so…. the residential property market is red hot and Studio Apartments are no exception.
So what is a Studio Apartment?
Typically a Studio Apartment is one main room and self contained. There are some Studio apartments as small as just 18m2 however the Auckland City Council decided their size needed to be controlled and since 2005 Studio Apartments have been built to minimum of 30 square metres and 35 square metres if it has a balcony.
The minimum floor size of Studio Apartments has increased the value of the market and banks are happier to lend more based on a loan to value ratio.
Studio Apartments don’t usually have car parks however they are often preferred to full size apartments where a tenant may get a room and share facilities with flat mates. A studio apartment provides more privacy for tenants not wanting to share with other people.
Auckland Studio Apartments have full facilities e.g. laundry, kitchen, bathroom and they are now valued between $110,000 and $215,000 as a rough guide.
Weekly rent achieved from an Auckland Studio Apartment is from $200 a week. I recently did a small renovation on one of my Studio Apartments and achieved a much higher weekly rent – read this article on how I (Grant Hoey) increased the rent on a Studio Apartment .