The Auckland property market is notorious for its competitive nature, high prices and the difficulty of wrestling down a good investment. Residential property prices are commonly $100 - $200 thousand higher than their Wellington and Christchurch counterparts. The market is unforgiving, but, for anybody who can choose a wise investment, Auckland offers high returns and a lot of potential.
A higher level of sales activity in 2011 has seen the Auckland property market tip in a new direction. After a year and a half where owners have been sitting tight on properties, trends are starting to change and the market is opening up. Recession and economic downturn plagued the real estate market across the country three years ago causing a drought in new listings and a lack of activity in the region. As the effects of the recession wear off we are starting to see new activity in the Auckland market.
In early 2010 the property market started to balance out from the downturn that affected most of the year prior, giving sellers new confidence and, in turn, seeing a flood of new listings. While the rest of the country has started to experience a change in mindset as the property market grows again, Auckland is truly leading the way with the highest levels of property activity in New Zealand.
Buyers should be taking note and choosing now as a good time to invest. Spring has seen a rise in new listings of 18.6% in Auckland, meaning plenty of new investment opportunities are available in the region. The activity does mean that the market is tipping in favour of the sellers - if you are in the buying market then you are up against some steady competition. Auckland is a sure example of this, but other regions of the country are beginning to head down the same path.
The mean asking price is also trending upward, albeit slowly. Following spring trend, the mean asking price rose 3% from July in August; though this is only 1% above what it was in May.
In general the property market is looking a lot stronger than it has been in recent years. This is good for both sellers and buyers as they seem to be coming out of their shells a little more. Investors are seeing new opportunities and the market is finally in a healthy enough position to pique the interest of owners. Investing now during this upward trend is sure to see good returns, especially with the heightened activity in the nation’s Super City.