Hello,
Welcome to the twenty-seventh edition of the West Auckland monthly Residential Landlords Newsletter.
I am a landlord myself and have been for over 30 years. I currently own rental properties in South Auckland, the North Shore and of course West Auckland. Being a high preforming Real Estate Agent (top 1% in New Zealand) for over 26 years and always working in West Auckland I know the real estate market and the rental market very well.
In this and future newsletters I hope to provide ongoing up to date information relevant to landlords who own rental properties in West Auckland.
Regular features will include:
- Current sale prices
- Current mortgage rates
- Current rents
- A monthly suburb spotlight review
- A relevant feature article each month
|
Sale Prices |
|
|
|
| Suburb |
Median selling price |
No sold | Days to sell |
| Titirangi |
$992,000 |
17 |
32 |
| West Harbour |
$957,500 |
14 |
33 |
| Glendene |
$797,500 |
6 |
27 |
| Henderson |
$791,500 |
44 |
29 |
| Massey |
$690,000 |
37 |
30 |
| Ranui |
$738,750 |
12 |
33 |
| Sunnyvale |
$830,000 |
4 |
32 |
| Swanson |
$714,500 |
8 |
35 |
| Te Atatu Peninsula |
$944,100 |
19 |
29 |
| Te Atatu South |
$707,500 |
15 |
27 |
| Glen Eden |
$745,000 |
28 |
34 |
| New Lynn |
$646,000 |
28 |
31 |
| Hobsonville |
$910,000 |
8 |
57 |
| Oratia |
$960,000 |
5 |
42 |
Source REINZ
|
Current Mortgage Rates (21/11/2016) |
|||||
|
Float |
1 yr fixed |
2 yr fixed |
3 yr fixed |
5 yr fixed |
|
| ANZ |
5.59% |
4.25% |
4.29% |
4.99% |
5.30% |
| ASB |
5.55% |
4.29% |
4.34% |
4.59% |
5.09% |
| BNZ |
5.64% |
4.29% |
4.39% |
4.59% |
5.09% |
| Westpac |
5.65% |
4.25% |
4.29% |
4.49% |
4.89% |
| Kiwi Bank |
5.25% |
4.19% |
4.29% |
4.65% |
5.20% |
| Best of other lenders |
5.19% |
4.19% |
4.19% |
4.35% |
4.79% |
Source – J Goodrum – Internet search
| Current Rents | |||||
| 1st May – 31st October 16 | |||||
| Glen Eden | Average Rent | Bonds Paid | Royal Heights/Massey | ||
| 1 brm flat | $300.00 | 6 | 2 brm flat | $390.00 | 5 |
| 2 brm flat | $365.00 | 14 | 3 brm flat | $450.00 | 7 |
| 2 brm house | $390.00 | 17 | 2 brm house | $410.00 | 14 |
| 3 brm house | $460.00 | 90 | 3 brm house | $477.00 | 136 |
| 4 brm house | $550.00 | 18 | 4 brm house | $547.00 | 34 |
| 5+ brm house | $500.00 | 5 | 5+ brm house | $650.00 | 10 |
| Glendene | Te Atatu South | ||||
| 1 brm flat | $320.00 | 5 | 1 brm flat | $295.00 | 6 |
| 2 brm flat | $370.00 | 11 | 2 brm flat | $400.00 | 11 |
| 3 brm flat | $460.00 | 5 | 2 brm house | $400.00 | 17 |
| 2 brm house | $390.00 | 13 | 3 brm house | $495.00 | 51 |
| 3 brm house | $480.00 | 43 | 4 brm house | $590.00 | 12 |
| 4 brm house | $550.00 | 23 | 5+ brm house | $770.00 | 5 |
| 5+ brm house | $880.00 | 5 | Te Atatu Peninsula | ||
| Henderson | 1 brm flat | $325.00 | 6 | ||
| 2 brm apartment | $437.00 | 6 | 2 brm flat | $400.00 | 7 |
| 1 brm flat | $315.00 | 9 | 1 brm house | $315.00 | 5 |
| 2 brm flat | $380.00 | 37 | 2 brm house | $420.00 | 24 |
| 3 brm flat | $472.00 | 10 | 3 brm house | $500.00 | 75 |
| 1 brm house | 4 brm house | $620.00 | 23 | ||
| 2 brm house | $420.00 | 46 | Titirangi | ||
| 3 brm house | 1 brm flat | $320.00 | 12 | ||
| 4 brm house | $575.00 | 80 | 2 brm flat | $382.00 | 12 |
| 5+ brm house | $720.00 | 13 | 1 brm house | $330.00 | 6 |
| Kelston | 2 brm house | $400.00 | 30 | ||
| 1 brm apartment | $310.00 | 15 | 3 brm house | $535.00 | 68 |
| 1 brm flat | $300.00 | 15 | 4 brm house | $650.00 | 19 |
| 2 brm flat | $335.00 | 5 | 5+ brm house | $795.00 | 5 |
| 3 brm flat | $395.00 | 5 | West Harbour | ||
| 2 brm house | $415.00 | 16 | 2 brm apartment | $482.00 | 6 |
| 3 brm house | $475.00 | 68 | 1 brm flat | $315.00 | 12 |
| 4 brm house | $520.00 | 14 | 2 brm flat | $385.00 | 5 |
| 5+ brm house | $630.00 | 5 | 3 brm flat | $470.00 | 5 |
| New Lynn | 1 brm house | $402.00 | 6 | ||
| 1 brm apartment | $335.00 | 14 | 2 brm house | $430.00 | 14 |
| 2 brm apartment | $455.00 | 10 | 3 brm house | $500.00 | 76 |
| 1 brm flat | $315.00 | 14 | 4 brm house | $650.00 | 45 |
| 2 brm flat | $390.00 | 41 | 5+ brm house | $755.00 | 8 |
| 2 brm house | $430.00 | 37 | Western Beaches / Rural | ||
| 3 brm house | $495.00 | 81 | 1 brm apartment | $270.00 | 5 |
| 4 brm house | $555.00 | 18 | 1 brm flat | $310.00 | 15 |
| Ranui | 1 brm house | $340.00 | 7 | ||
| 2 brm house | $400.00 | 18 | 2 brm house | $400.00 | 38 |
| 3 brm house | $450.00 | 58 | 3 brm house | $492.00 | 54 |
| 4 brm house | $540.00 | 15 | 4 brm house | $555.00 | 22 |
| 5+ brm house | $675.00 | 5 | |||
Source NZ Government building & housing
|
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|
Henderson |
|||
|
Date |
Median selling price |
5 year gain % |
|
| Oct 1996 | $160,000.00 |
- |
|
| Oct 2001 | $195,000.00 |
+ 21.9% |
|
| Oct 2006 | $325,000.00 |
+ 66.7% |
|
| Oct 2011 | $385,000.00 |
+ 18.5% |
|
| Oct 2016 | $791,500.00 |
+ 105.6% |
|
| Over 20 years |
+ 394.7% |
||
|
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|
Te Atatu Peninsula |
|||
|
Date |
Median selling price |
5 year gain % |
|
| Oct 1996 |
$177,250.00 |
- |
|
| Oct 2001 |
$207,250.00 |
+ 16.9% |
|
| Oct 2006 |
$387,500.00 |
+ 87.0% |
|
| Oct 2011 |
$461,500.00 |
+ 19.1% |
|
| Oct 2016 |
$944,100.00 |
+ 104.6% |
|
| Over 20 years |
+ 432.6% |
||
Source NZ department of statistics
Housing Shortage and Earthquakes
We already have a housing shortage in Auckland estimated to be around 40,000 houses. The problem is getting worse, not better. Auckland needs 13,000 new houses each year just to take care of the growth in the city’s population but last year there were only 9,700 building consents and not all of them will get built. New Zealand net migration is now sitting at a high of 70,000 for the year to September 2016 and a large portion of these settle in Auckland.
The problem of building more houses even if more land is made available and Auckland Council is made by the government to speed up the process, is that there simply isn’t enough builders and tradespeople available. This was the case at the beginning of this month. Now, following the 7.8 magnitude earthquake and the many aftershocks around Kaikoura, there is a lot more homes to build, repair and strengthen in many places in New Zealand, including Wellington.
This is going to worsen the availability of builders, tradespeople and contractors to develop bare land into residential subdivisions in Auckland as people and machinery are needed for infrastructure and building work elsewhere.
What is the implications for house prices in Auckland? They will increase in price due to the increased cost to build as tradespeople will be able to charge more for their services, putting up the price of new builds and this will relate to increased prices for exiting houses.
You can “tinker” all you like with LVR and so on but it basically gets down to economics 101.
- SUPPLY = DEMAND……..steady prices
- SUPPLY greater than demand…..falling prices
- SUPPLY less than demand……increasing prices.
We are likely to have condition 3 for even longer now, perhaps 3 or more years.
Until next time,
Best wishes,
John Goodrum
Licensee Agent REAA 2008
021945140