Thinking ahead in the Auckland property market
Auckland is a vast and fast growing city; it is fair to say it is a city with sufficient scale to be considered a property market in its own right. So when it comes to decisions around property they can be as varied as the make up of our city in terms of diversification, background and aspiration.
Auckland as a city is changing and growing fast. This is something we should be proud of and celebrate, as having a city that registers as relevant on the world stage in terms of scale is benchmark for the future of global economies. Auckland is recognised and identified as a great place to work and live, it benefits from the status and respect that New Zealand holds in the world as a safe and secure country. These components will be the drivers of the future economic growth of Auckland and as a flow-on positively affect the whole New Zealand and as a consequence drive the property market in Auckland.
To identify how and where this growth and expansion will come is key to better appreciating the opportunity in the Auckland property market. Auckland has to deliver a varied portfolio of properties to suit differing budgets and lifestyles. These will include high rise apartments within the existing CBD, intensification of townhouses and low rise apartments in a range of city hubs across the region, new housing developments offering lower cost solutions for housing needs close to amenities and transport links. All of these interspersed with the current established housing stock of Auckland in the form of established suburbs and traditional family homes. All of the above styles, types and sizes of homes will fulfill a need for today and the future.
In considering the best property to buy at this time it is sensible to think what will be your needs for the coming few years, what amenities, facilities and transportation links are important to you. Then with an eye on the future the smart buyers will look to buy where they believe future growth and demand will be located. It is not always going to be based around the traditional ring of inner city suburbs that have witnessed the greatest demand of the past 5 years. Take for example the recent news reports around the look and feel of the Auckland airport in 30 years time, the explosion of jobs that is likely to create. Added to the immediate jobs of the airport, think how the area around the airport has grown in the past 10 to 15 years – once an isolated runway and buildings surrounded by vegetable fields now is a thriving distribution hub linked by the motorway extensions.
In the years to come property in that area of the city will be more diverse, less of the dominance of single family dwellings and more focused to apartments, townhouses with more intensification. The city of Auckland in the coming years will be more the region of Auckland with cities within its boundary. The North Shore has been a city for many years but in reality Albany is the new city on the shore – a wholly self supporting environment with amenities and a significant population; so it will be for Hobsonville and the Ormiston and the airport and other areas of the future region of Auckland. From a property perspective the region of Auckland 10, 20 years from now needs to be viewed as a replication of the property buying demand seen over the past 20 years around the CBD with the inner suburbs attracting greatest interest. So it will be with surrounding suburbs adjacent to these new cities with a similar demand matched to price structure where the proximity to amenities and quality construction will attract higher prices whilst those properties further away will see lower demand. The interesting aspect to consider is there will be areas of the greater Auckland region which will be equidistant from many new cities which will become attractive as they offer optional access whilst offering good facilities, for an example think of Hillsborough – a perfect distance from the CBD and also the new growing airport developments yet offering great facilities and quiet lifestyle with great views.
Auckland currently represents around 30% of NZ population, that will grow to around 35% within 20 years – there seems little that governments can do to stop this magnetic pull towards the city and region, that demand will come from business attracting people who will need to live, their choices will as ever be based around what properties are available. If you are looking to make smart property decisions in the coming years, think ahead as to the future look and structure of Auckland and you could profit significantly.