Actual property sales in Auckland has decreased over the last couple of months however property values have continued to climb. During the last year 15 percent has been added to property values.
The RBNZ continues to impose the LVR restrictions on loans so Banks are can only lend up to ten percent of all new lending to home buyers needing to borrow more than eighty percent of the value of the property.
So is more Apartments the answer to home affordability? The building of more high rise apartment blocks and the adding of granny flats is the answer according to a property seminar held in Wellington. The seminar was a panel discussion on housing and on the panel where Government representatives, and an Economist.
More Apartments would add supply and ease demand in the property market which is very much needed in the Auckland region.
A new OECD report shows homes in New Zealand are the second most expensive in the developed world, based on the ratio of price-to-income, and the most-overvalued relative to rents.
The Auckland region accounts for a third of the population so it eschews the ‘real’ results nationwide.
Apartment living is more desired now and developers realise they need to focus on quality to get the best value from their investment.
Grant Hoey is one of Auckland’s most sought after mentors. He has specialised in the Auckland Apartment market for many years and you can download the eBook – Gain CashFlow From Apartments.