properties for sale - Bayleys

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market uncovered New Lynn, Birkenhead,. Onehunga ... Wainui in the north, Hingaia to the west ... The City Rail Link, wh
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BIG THING THE LATEST BAYLEYS RESEARCH HIGHLIGHTS AN EMERGENCE OF NEW PROPERTY HOT SPOTS ACROSS AUCKLAND AND THE NORTH, SAYS BAYLEYS NATIONAL RESIDENTIAL AND AUCTION MANAGER DANIEL COULSON.

——— N AT IO N A L R E S ID E N TIAL M ANAGE R AN D N AT IO N A L AU CTIO N M ANAGER DA N IE L COU LS O N

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

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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 aboveaverage 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 benefitted 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 ‘hotspots’ 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. Although new greenfield suburban locations and less populated suburbs are easily identified, dwindling building activity to match demand indicates that buyers with bigger budgets should look at suburbs which hold ‘status’ and ‘exclusivity’. Analysis of the latest Real Estate Institute of New Zealand (REINZ) data highlights market activity across Auckland for properties with a median value of $1.5 million or more are still in strong demand. Development activity has dominated the housing market, however as our

78 West End Road, Westmere can be found on page 26.

population swells the supply vs. demand struggle continues to uphold the status of the ‘exclusive’ suburbs. Centrally-located St Mary’s Bay, Mission Bay or the North Shore’s Stanley Point for example, are likely to remain less intensified under the Unitary Plan (operative in part), with the purpose of retaining the character of the surrounding area. This implies a heritage which is worth preserving, accompanied by a status of desirability enabling values to remain strong well into the future. In the south of Auckland, there are a number of suburbs that standout for their access as well as their proximity to local amenities. Significant transport, commercial and retail developments have added value to residential housing in Takanini and Papakura in the past decade, however Hingaia and Drury south are other future hotspots. Located on the shores of the Pahurehure Inlet there is limited housing in Hingaia, however improved access, identification for special housing and Government funding for a new primary school has caught the eye of developers and savvy buyers. Just down the road in Drury, New Zealand’s largest listed sector company Kiwi Property Group, (owner of Sylvia Park shopping centre) purchased

approximately 50 hectares of land for a future town centre. Growth in the south, and new suburban hotspots will continue to emerge in this area. This is purely due to its location between Auckland city, Hamilton and Tauranga - known as the ‘golden triangle’, where almost 50 percent of New Zealand’s Gross Domestic Product (GDP) originates. Although residential sales data this year has painted a slow picture – it’s worthwhile to note that ‘slow’ is in contrast to the unprecedented boom we have seen previously. There might be more room for buyers to take their time when choosing property, reflected by comparatively low sale volumes and an increase in days on the market. However sale prices are still moving upward in certain locations and sectors of the market. While the local property market is in a period of change, savvy-buyers can take heed from historical data and pipeline development when looking to pick the ‘next big thing’. Just as infrastructure and expansion have revealed new capabilities of suburbs New Lynn, Birkenhead, Onehunga and Warkworth previously, we can look to property values in Waipu, Wainui, Hingaia and Drury south to reap similar rewards in the medium-to-long-term.

PROPERTIES FOR SALE IN THE NORTH NORTH SHORE WEST

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CENTRAL EAST AND SOUTH NATIONAL OPPORTUNITIES

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The property feature on the cover at 288B Jervois Road, Herne Bay can be found on page 25. Preview is published by Bayleys Realty Group. The information contained in this magazine is given in good faith and does not necessarily reflect the views of Bayleys Realty Group. It is derived from sources believed to be reliable and accurate. However, neither Bayleys Realty Group nor any person involved in the preparation of this magazine accepts any form of liability for its contents, including advertisements, editorials, property information, or any consequences. Copyright© 2017: Bayleys Realty Group. All real estate companies featured are members of the Bayleys Realty Group. In all cases, interested parties should conduct their own verification of property information in this publication, as well as their own investigation and analysis of the property. All parties are urged to take legal advice before entering into any property contract or agreement.

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