Investors less keen to buy Crockers
A lack of listings and high prices may be putting people off investing in the Auckland market.
Wednesday, August 7th 2013, 12:00AM
by The Landlord
For the first time this year, Crockers' latest Property Investment Index survey found that more people were planning to reduce the size of their residential property investment portfolios than increase it.
Intentions to invest in commercial property also dropped, to a 12-month low of 9%.
Among those who were looking to invest, non-apartment residential property increased in appeal, while apartments outside the CBD held steady and CBD units dropped in favour.
The Crockers research showed that people buying Auckland apartments seemed to be seeking those that fell in the middle of the price range. Since 2009, the number of sales of apartments in the $150,000 to $249,000 price bracket has increased, at the expense of both more and less expensive apartments.
One third of the investors who responded to the Crockers survey said there was high demand for apartments in Auckland. Just 10% thought there were low levels of demand.
But the premium paid for a one-bedroom rental in Auckland has decreased over the past 10 years, as other areas have caught up.
Two-bedroom Auckland rent prices have increased at a greater rate compared to the rest of the country.
Most survey respondents thought that young people would be the type of tenant most likely to want to live in an apartment. About 45% agreed with the Auckland Unitary Plan proposal to increase the number of apartments around the city's town centres. About one-fifth disagreed and a quarter did not have an opinion.
The average price for a two-bedroom rental in Auckland has decreased slightly from May's high to $398 per week, while three-bedroom rental prices have continued to climb to a high of $527 a week across Auckland.
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