Hello,
Welcome to the eighteenth 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
I hope you will find it useful. I am available for free advice and opinion on any residential or lifestyle real estate matter.
|
Sale Prices |
|||
| Suburb |
Median selling price Jan 2016 |
No sold | Days to sell |
| Titirangi |
$735,000 |
10 |
43 |
| West Harbour |
$813,750 |
14 |
53 |
| Glendene |
$642,500 |
4 |
38 |
| Henderson |
$715,000 |
41 |
33 |
| Hobsonville |
$672,000 |
4 |
165 |
| Massey |
$650,000 |
27 |
32 |
| Ranui |
$535,000 |
5 |
55 |
| Sunnyvale |
$650,000 |
9 |
52 |
| Te Atatu Peninsula |
$880,000 |
7 |
65 |
| Te Atatu South |
$714,000 |
13 |
35 |
| Glen Eden |
$620,000 |
26 |
34 |
| New Lynn |
$663,500 |
26 |
41 |
| Kelston |
$628,750 |
6 |
33 |
| Royal Heights |
$946,000 |
7 |
34 |
Source REINZ
|
Current Mortgage Rates (14/02/2016) |
|||||
|
Float |
1 yr fixed |
2 yr fixed |
3 yr fixed |
5 yr fixed |
|
| ANZ |
5.74% |
4.39% |
4.49% |
5.10% |
5.35% |
| ASB |
5.75% |
4.39% |
4.49% |
4.75% |
5.25% |
| BNZ |
5.79% |
4.39% |
4.39% |
4.49% |
5.50% |
| Westpac |
5.85% |
4.39% |
4.39% |
4.65% |
5.35% |
| Kiwi Bank |
5.65% |
4.39% |
4.49% |
4.85% |
5.35% |
| Best of other lenders |
5.59% |
4.25% |
4.29% |
4.49% |
5.15% |
Source – J Goodrum – Internet search
|
Current Rents |
|||||
|
1st August 15 – 31st Jan 16 |
|||||
| Glen Eden |
Average Rent |
Bonds Paid |
Ranui | ||
| 2 brm apartment |
$310.00 |
6 |
2 brm flat |
$330.00 |
6 |
| 2 brm flat |
$350.00 |
15 |
2 brm house |
$372.00 |
8 |
| 2 brm house |
$372.00 |
24 |
3 brm house |
$450.00 |
75 |
| 3 brm house |
$450.00 |
117 |
4 brm house |
$475.00 |
10 |
| 4 brm house |
$525.00 |
23 |
Royal Heights/Massey | ||
| 5+ brm house |
$495.00 |
5 |
1 brm flat |
$300.00 |
9 |
| Glendene | 2 brm flat |
$360.00 |
8 |
||
| 1 brm flat |
$285.00 |
10 |
2 brm house |
$380.00 |
29 |
| 2 brm flat |
$360.00 |
17 |
3 brm house |
$450.00 |
143 |
| 2 brm house |
$390.00 |
20 |
4 brm house |
$550.00 |
36 |
| 3 brm house |
$455.00 |
50 |
5+ brm house |
$605.00 |
16 |
| 4 brm house |
$545.00 |
14 |
Te Atatu South | ||
| 5+ brm house |
$680.00 |
5 |
1 brm flat |
$270.00 |
5 |
| Henderson | 2 brm flat |
$362.00 |
10 |
||
| 1 brm apartment |
$315.00 |
5 |
2 brm house |
$392.00 |
24 |
| 2 brm apartment |
$380.00 |
6 |
3 brm house |
$465.00 |
45 |
| 1 brm flat |
$300.00 |
11 |
4 brm house |
$525.00 |
16 |
| 2 brm flat |
$375.00 |
44 |
Te Atatu Peninsula | ||
| 3 brm flat |
$372.00 |
8 |
2 brm apartment |
$450.00 |
5 |
| 1 brm house |
$307.00 |
10 |
1 brm flat |
$310.00 |
8 |
| 2 brm house |
$390.00 |
55 |
2 brm flat |
$385.00 |
8 |
| 3 brm house |
$455.00 |
219 |
2 brm house |
$402.00 |
18 |
| 4 brm house |
$560.00 |
74 |
3 brm house |
$490.00 |
85 |
| 5+ brm house |
$600.00 |
17 |
4 brm house |
$585.00 |
15 |
| Kelston | Titirangi | ||||
| 1 brm apartment |
$290.00 |
25 |
1 brm flat |
$295.00 |
21 |
| 1 brm flat |
$290.00 |
19 |
2 brm flat |
$390.00 |
13 |
| 2 brm flat |
$320.00 |
14 |
1 brm house |
$330.00 |
5 |
| 1 brm house |
$300.00 |
5 |
2 brm house |
$400.00 |
25 |
| 2 brm house |
$377.00 |
12 |
3 brm house |
$520.00 |
57 |
| 3 brm house |
$460.00 |
64 |
4 brm house |
$592.00 |
18 |
| 4 brm house |
$520.00 |
15 |
5+ brm house |
$650.00 |
7 |
| New Lynn | West Harbour | ||||
| 1 brm apartment |
$320.00 |
20 |
1 brm flat |
$315.00 |
8 |
| 2 brm apartment |
$382.00 |
8 |
2 brm house |
$400.00 |
18 |
| 1 brm flat |
$295.00 |
14 |
3 brm house |
$497.00 |
86 |
| 2 brm flat |
$380.00 |
45 |
4 brm house |
$595.00 |
34 |
| 3 brm flat |
$440.00 |
9 |
5+ brm house |
$800.00 |
13 |
| 1 brm house |
$320.00 |
7 |
Western Beaches/Rural | ||
| 2 brm house |
$400.00 |
40 |
1 brm flat |
$260.00 |
7 |
| 3 brm house |
$485.00 |
90 |
1 brm house |
$375.00 |
6 |
| 4 brm house |
$550.00 |
10 |
2 brm house |
$380.00 |
43 |
| 5+ brm house |
$660.00 |
6 |
3 brm house |
$480.00 |
57 |
| 4 brm house |
$500.00 |
14 |
|||
| 5+ brm house |
$600.00 |
5 |
|||
Source NZ Government building & housing
|
|||
|
Te Atatu Peninsula |
|||
|
Date |
Median selling price |
5 year gain % |
|
| Jan 1996 | $165,000.00 |
- |
|
| Jan 2001 | $261,250.00 |
58.3% |
|
| Jan 2006 | $356,000.00 |
36.3% |
|
| Jan 2011 | $422,500.00 |
18.7% |
|
| Jan 2016 | $857,500.00 |
103.0% |
|
| Over 20 years |
419.7% |
||
|
|||
|
Henderson |
|||
|
Date |
Median selling price |
5 year gain % |
|
| Jan 1996 |
$164,000.00 |
- |
|
| Jan 2001 |
$199,000.00 |
21.3% |
|
| Jan 2006 |
$310,000.00 |
55.8% |
|
| Jan 2011 |
$363,500.00 |
17.3% |
|
| Jan 2016 |
$715,000.00 |
96.7% |
|
| Over 20 years |
336.0% |
||
Source NZ department of statistics
The West is Best
There is little question that Auckland has outperformed all other cities as far as residential property capital growth is concerned. The compounding annual capital growth for Auckland for the 25 years between 1981 and 2007 (The Global Financial Crisis) was 9.2% which was the highest in the country.
It is very clear what has happened since 2007. After a small fall reversal of around 4% following the GFC prices have risen very sharply in Auckland (prices rose over 20% during 2015).
Prices late last year began to rise in other cities too such as Hamilton and Tauranga but nothing like Auckland.
It gets back to the fundamentals. There is a large shortage of houses in Auckland and a high and growing (population) demand.
So there is no dispute that capital gains with property in Auckland have outperformed the rest of N.Z. Auckland is a large city. Which parts of Auckland has performed the best? Here are the last 5 years figures.
| Location | Growth compounded 2011 – 2015 |
| Waitakere |
9.40% |
| North Shore |
9.20% |
| Auckland City |
8.10% |
| Papkura |
7.30% |
| Rodney |
7.20% |
| Manukau |
6.20% |
| Franklin |
5.50% |
And the winner is – West Auckland.
In my West Auckland Landlords Newsletter No7 I gave an analysis of why West Auckland is a great place to invest in rental property. The major infrastructure improvements which include widening the N.W motorway and the Waterview tunnel which will link the NW motorway to the Airport and provide an alternative route south coupled with major developments such as Westgate all indicative of continuing good growth for West Auckland.
The West is best!
Until next time,
Best wishes,
John Goodrum
Licensee Agent REAA 2008
021945140