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Stats – Te Atatu Peninsula
September 2013 to August 2014 – Total properties sold 220
August 2014 – Total properties sold 14
Stats – Te Atatu South
September 2013 to August 2014 – Total properties sold 297
August 2014 – Total properties sold 22
Stats – West Auckland
September 2013 to August 2014 – Total properties sold 4091
August 2014 – Total properties sold 358
Aerial Footage by: www.flyinlow.co.nz
Property is the fruit of labour; property is desirable; it is a positive good in the world – Abraham Lincoln
Today I caught up with Narender to chat about the happenings, advice and forecast on our property market in West Auckland
It was well publicised that the property market slowed ahead of the elections last weekend as a cautionary measure, how do you see things now the elections are over?
‘It is a normal response to general elections – I’m of the opinion that we will see way more activity in terms of the number of listings and number of sales over the next three months. Spring is also a factor for higher activity. Because it is a National lead government it’s going to be business as usual.’
We know Te Atatu Peninsula has continued to increase in popularity and it’s harder and harder to buy into the area. For those individuals and families who are keen to buy in the area but can’t seem to find a way in, are there any other areas in West Auckland that you would recommend as entry level with a view to perhaps getting into the wider real estate market at a later time – areas that in your opinion are up and coming
‘It is true that listings on the Peninsula are generating more interest than most other suburbs in West Auckland. I would suggest Massey because of the huge development in Westgate – the prices there compared to the Peninsula are 15-20% below, even the older part of West Harbour you could buy 600 mtr square sections with a three bedroom house somewhere in the range of $500-$600k.’
What other trends in the property market in West Auckland do you see?
‘In suburbs like Ranui, you can still buy a standard house on a full section for somewhere around mid 400’s or high 400’s. There is big potential for the values to grow there, I’ve noticed that the surrounding new sub-divisions (even though they are joined to Henderson Heights) the new houses (bigger than normal) are being built and being sold in the region of 800k to 1 million dollars even though the address is still Ranui. Seeing that trend happening now, the older part of Ranui has a lot of potential to grow. You might think that moving away from the city the prices would be less but it’s not. The older part of Ranui, Massey have a lot of potential to grow, especially with the Westgate development and possible capital gains for investors.’
Do you have any tips or advice for families that are trying to get into the market?
‘What I’ve noticed is that with Asian families it’s easier for them to buy in the sense that their families come in to help them. I’m working with a client at the moment who is young and single, and her parents have come over from China and they are helping her with a deposit (she has a full-time job) which of course makes it easier to buy a property. Buying your first home is the most difficult part – I would suggest areas like Massey and Ranui even if it’s not the area you want, even if it’s a smaller house, you try and buy where you can. Projection for Auckland over the next 15 – 20 years is that there will be way more people than there are at the moment and I only see the prices going higher and higher. If you buy a first home and build some equity it makes it easier to get to that dream house that everyone is trying to get to. If you look at West Auckland, we are so close to the CBD once you are on the motorway, it’s a very easy commute compared to some of the South Auckland suburbs. My strong suggestion is buy where you can.’
Are there proven cycles in the housing market?
‘I have observed that it’s a seven year cycle – when you see the prices come down they don’t come down by that much so there’s always a certain growth every seven years. Buying houses is definitely the way to get ahead, you can’t really lose in real estate. I’m also noticing 6-8 months ago the predominant buyer in the market place were home buyers but now there are lots of builders looking to buy sections and build houses and investors looking for investment properties amongst the home buyers which will keep the demand high. The only reason I can see the market slowing down is if the interest rates go higher, and my information on interest rates is that there aren’t any anticipated increases in the OCR until next March, I don’t see the house prices increasing for the next year or year and a half.’
Thanks Narender. We hope to catch up with Narender again in a few months to here more about whats going with real estate in West Auckland.
If you have questions, call me, I am a local Te Atatu real estate agent Mark Boyd with Barfoot and Thompson. Licensed under the Real Estate Agents Act 2008. The figures that I have calculated 0n this page are correct to the best of my knowledge.
Read our first Article on Te Atatu Peninsula Real Estate here.