Manukau and Papakura are Auckland’s fastest-growing hot suburbs, according to CoreLogic data. Prices in those areas were up around 24% on the previous year, and this comes on the heels of a report that found 80% of South Auckland’s sales are to property investors. That will come as no surprise to any of you who have recently attended an open home in South Auckland, as we have: plenty of keen buyers but most are investors.
But this flies in the face of evidence that property investors are feeling the pinch of 2015’s 30% deposit requirement in Auckland and heading further afield with their money. The buzz in other North Island centres has been all about Auckland money, and this is now backed up the data: Tauranga values are up 21% on a year earlier and Hamilton by an even more impressive 25%. It seems Auckland property investors are driving a lot of this, as plenty of reports are surfacing that first home buyers are struggling to compete with equity-rich Aucklanders buying up traditional first homes in the regions.
What does this tell us about property investment in 2016? More investors in South Auckland. More Auckland investors in Tauranga and Hamilton. Overall, the message is clear: Aucklanders are looking to grow their money and they have faith in property to provide a risk-reward balance that can’t be found in other assets. Whatever the Reserve Bank does, it won’t change that.