Are Apartments The Future Of Auckland Housing?

apartmentRising house prices continue to leave people out of the housing market, but Harcourts Chief Executive Hayden Duncan suggests that apartments may just solve the problem. Having described Auckland as the problem child of the housing market, Duncan says that building up rather than out is the way forward.

With July’s average Auckland property price of $721,553 showing signs of getting higher due to continual growth of the region’s population, Duncan says that if more apartments were built in Auckland they would be snapped up. However more apartments would need to be built by developers and investors for this to happen.

Auckland Property Booming Despite Introduction of LVR
Wellington and provincial centres around the country were hit hard by the introduction of loan to value ratios introduced by the Reserve Bank to help cool the housing market. However Christchurch post-earthquake and Auckland itself did not feel any reduced pricing or pressure. Instead investors have stepped in and purchased all the lower price housing which first home buyers could no longer afford as they could not raise the 20% required deposit.

With the planning and building of more apartment buildings, more properties would be available for purchase. This would reduce the competition between buyers, which in turn raises the purchase price of the property.
Apartments not just for the young

Apartment living is popular with all generations for multiple reasons including:

  • Locations of apartments are usually within the city centre, allowing residents easy access to shopping, work and public transport.
  • Apartments are great for those with limited time, who would rather spend their time socialising or are unable to physically maintain a property, as the corporate body handles maintenance issues.
  • Stunning views are available in many apartments due to their location close to a waterfront or simply because the buildings are tall.
  • Land is scare in some built up areas, so purchasing a house may prove too costly and an apartment may be cheaper to buy.
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