Auckland property owners are benefiting from an average monthly rise in sale price of $11,088 or $369.60 each day during June, according to Barfoot & Thompson. But while the second highest average sale price on record of $714,054 may cause financial discomfort for some home buyers, it was caused by an increase in sales of properties over the $1 million plus price bracket, which should not flow down to lower priced homes.
ASB Bank economist Daniel Smith noted that while the number of new homes coming onto the market remains low, there are more purchase opportunities for buyers due to a decline in sales and a slight increase in new listings. He predicts that while strong demand for Auckland properties will continue to rise, fuelled by migration inflows and the current low fixed term interest rates, the short supply of properties will continue to raise the average sales prices within the Auckland region.
Smith says this is one reason why the Reserve Bank will most probably raise the OCR by 25 basis points later this month, placing more pressure on home buyers.
However young Auckland property investors do not seem to be viewing the price rises or property shortage as negative. The Young Kiwis In Property group (YKIP), started by former chef Kyron Gosse who purchased his first property when he was 22, aims to bring likeminded property investors and first home buyers together for networking opportunities.
Gosse, who aims to own 30 rental properties before venturing into commercial property, runs regular meetings where he and other members offer advice and share both their negative and positive property investment experiences with others. Many members have multiple properties and are able to offer advice on renovating and renting properties, as well offer suggestions on where and how to find for affordable homes or purchase. Both he and other members of YKIP are well on their way to achieving their goal of financial freedom by the age of 30 and welcome new members to their group.
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