Hello,
Welcome to the thirty-first 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 |
| Green Bay |
$885,500 |
6 |
40 |
| Titirangi |
$880,000 |
18 |
21 |
| Sunnyvale |
$739,500 |
6 |
26 |
| West Harbour |
$900,000 |
10 |
36 |
| Hobsonville |
$959,000 |
13 |
53 |
| Glendene |
$814,000 |
5 |
21 |
| Henderson |
$710,000 |
51 |
32 |
| Massey |
$760,000 |
31 |
36 |
| Ranui |
$681,000 |
19 |
33 |
| Royal Heights |
$690,000 |
5 |
32 |
| Swanson |
$820,000 |
11 |
52 |
| Te Atatu Peninsula |
$940,000 |
14 |
44 |
| Te Atatu South |
$686,000 |
17 |
54 |
| Glen Eden |
$700,000 |
31 |
37 |
| Kelston |
$724,000 |
10 |
40 |
| New Lynn |
$710,000 |
17 |
45 |
| Piha |
$739,000 |
3 |
16 |
Source REINZ
|
Current Mortgage Rates (16/06/2017) |
|||||
|
Float |
1 yr fixed |
2 yr fixed |
3 yr fixed |
5 yr fixed |
|
| ANZ |
5.79% |
4.49% |
4.85% |
5.49% |
6.09% |
| ASB |
5.80% |
4.45% |
4.74% |
5.09% |
5.69% |
| BNZ |
5.90% |
4.59% |
4.74% |
5.09% |
6.09% |
| Westpac |
5.95% |
4.59% |
4.85% |
5.09% |
5.59% |
| Kiwi Bank |
5.70% |
4.69% |
4.79% |
5.25% |
5.99% |
| Best of other lenders |
5.00% |
4.09% |
4.29% |
4.89% |
5.59% |
Source – J Goodrum – Internet search
| Current Rents | |||||
| 1st Dec 2016 – 31st May 2017 | |||||
| Glen Eden | Average Rent | Bonds Paid | Royal Heights/Massey | ||
| 2 brm flat | $387.00 | 18 | 1 brm flat | $285.00 | 15 |
| 2 brm house | $400.00 | 27 | 2 brm flat | $390.00 | 8 |
| 3 brm house | $480.00 | 110 | 3 brm flat | $465.00 | 9 |
| 4 brm house | $560.00 | 19 | 2 brm house | $420.00 | 27 |
| Glendene | 3 brm house | $480.00 | 144 | ||
| 2 brm flat | $380.00 | 15 | 4 brm house | $590.00 | 35 |
| 2 brm house | $405.00 | 30 | 5+ brm house | $670.00 | 13 |
| 3 brm house | $490.00 | 65 | Te Atatu South | ||
| 4 brm house | $570.00 | 21 | 1 brm flat | $315.00 | 6 |
| Henderson | 2 brm flat | $410.00 | 14 | ||
| 1 brm apartment | $330.00 | 6 | 2 brm house | $420.00 | 24 |
| 1 brm flat | $310.00 | 25 | 3 brm house | $500.00 | 57 |
| 2 brm flat | $397.00 | 40 | 4 brm house | $580.00 | 13 |
| 3 brm flat | $430.00 | 11 | 5+ brm house | $680.00 | 5 |
| 1 brm house | $325.00 | 14 | Te Atatu Peninsula | ||
| 2 brm house | $420.00 | 66 | 2 brm flat | $397.00 | 12 |
| 3 brm house | $490.00 | 230 | 3 brm flat | $500.00 | 5 |
| 4 brm house | $580.00 | 78 | 2 brm house | $420.00 | 21 |
| 5+ brm house | $715.00 | 32 | 3 brm house | $525.00 | 92 |
| Kelston | 4 brm house | $650.00 | 26 | ||
| 1 brm apartment | $320.00 | 16 | Titirangi | ||
| 1 brm flat | $300.00 | 14 | 1 brm flat | $325.00 | 12 |
| 2 brm flat | $375.00 | 21 | 2 brm flat | $390.00 | 13 |
| 3 brm flat | $450.00 | 9 | 2 brm house | $420.00 | 30 |
| 2 brm house | $405.00 | 34 | 3 brm house | $530.00 | 85 |
| 3 brm house | $495.00 | 82 | 4 brm house | $600.00 | 23 |
| 4 brm house | $590.00 | 21 | West Harbour | ||
| New Lynn | 2 brm apartment | $525.00 | 8 | ||
| 1 brm apartment | $350.00 | 24 | 1 brm flat | $322.00 | 6 |
| 2 brm apartment | $450.00 | 18 | 2 brm flat | $350.00 | 7 |
| 1 brm flat | $330.00 | 13 | 3 brm flat | $515.00 | 6 |
| 2 brm flat | $390.00 | 37 | 1 brm house | $315.00 | 8 |
| 3 brm flat | $475.00 | 11 | 2 brm house | $480.00 | 33 |
| 2 brm house | $430.00 | 46 | 3 brm house | $550.00 | 109 |
| 3 brm house | $500.00 | 104 | 4 brm house | $720.00 | 56 |
| 4 brm house | $600.00 | 25 | 5+ brm house | $792.00 | 20 |
| 5+ brm house | $690.00 | 7 | Western Beaches / Rural | ||
| Ranui | 1 brm flat | $290.00 | 8 | ||
| 2 brm flat | $380.00 | 9 | 2 brm flat | $400.00 | 7 |
| 3 brm flat | $440.00 | 7 | 2 brm house | $410.00 | 33 |
| 2 brm house | $400.00 | 16 | 3 brm house | $500.00 | 56 |
| 3 brm house | $460.00 | 77 | 4 brm house | $600.00 | 24 |
| 4 brm house | $580.00 | 13 | 5+ brm house | $750.00 | 7 |
Source NZ Government building & housing
|
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|
Hobsonville |
|||
|
Date |
Median selling price |
5 year gain % |
|
| May 1997 | $340,000 |
- |
|
| May 2002 | $345,000 |
+ 1.5% |
|
| May 2007 | $467,500 |
+ 35.5% |
|
| May 2012 | $527,000 |
+ 12.7% |
|
| May 2017 | $959,000 |
+ 82.0% |
|
| Over 20 years |
+ 182.1% |
||
|
|||
|
Glendene |
|||
|
Date |
Median selling price |
5 year gain % |
|
| May 1997 |
$218,000 |
- |
|
| May 2002 |
$180,362 |
- 17.3% |
|
| May 2007 |
$418,000 |
+ 131.8% |
|
| May 2012 |
$370,750 |
- 11.3% |
|
| May 2017 |
$814,000 |
+ 119.6% |
|
| Over 20 years |
+ 273.4% |
||
Source NZ department of statistics
The Auckland Unitary Plan – Some Implications
The major objective of the now operational (since November last year – with some sections not operative pending court of appeal hearings) plan is to make Auckland one of the world’s most liveable cities by meeting Auckland’s housing and economic needs. This entails freeing up more land and intensification with building houses now permitted on smaller sections of land and in many areas multi-story dwellings. The freeing up of more land much of which is only available in the outer suburbs means a lot of “greenfields” building is underway or planned.
In the West developments such as those at Hobsonville Point, Whenuapai, Swanson and Riverhead are examples of such greenfields development. The results of such greenfield development are much more traffic as the roading network struggles to keep up. From Swanson it is possible to commute by train and from Hobsonville Point a ferry goes to downtown Auckland but the service is not regular enough to offer a viable alternative to the car at present. Huapai and Riverhead don’t have adequate bus service and that means cars a plenty.
Intensification brings with it a lot of other problems. An example of this is a concept plan which was drawn up for a 54 apartment complex at 57 and 59 Kervil Ave in Te Atatu Peninsula. Currently 57 and 59 Kervil Ave are both 3 bedroom, 1 bathroom homes, one on an 809m2 and the other on a 850m2 section. If that development and others like it go ahead then around 25 times the number of toilets, bathrooms and accompanying wastewater have to be accommodated. The existing services surely cannot cope should several of these developments take place in close proximity to each other. Kervil Ave is an average street of 105 original sites so if an extra 150 apartments (3 such developments) appear in the street cars / vehicle parking would be chaos.
Yes the planners expect the residents to use public transport = buses only but without a service geared up to meet demand that is not a real option. There is no easy answer but a lot of the consequences of years of underspending on infrastructure by Auckland Council will soon become very, very apparent. If you would like to discuss your rental property situation please call me for a confidential discussion.
Until next time,
Best wishes,
John Goodrum
Licensee Agent REAA 2008
021945140
09 838 8895