Tāmaki Makaurau is New Zealand’s largest city — a multicultural hub of food, art, business and learning — and a place more than 1.6 million people call home.
With more businesses than anywhere else in the country, Auckland has a plethora of employment opportunities that attract many people to its bustling city.
The City of Sails is also known for its expensive house prices — even after a year of easing prices, its median price continues to surpass $1 million. In November 2022, Auckland’s median house price was $1,065,000, an 18.1% decrease on the market’s peak in November 2021.
With buyers concerned about further rises in interest rates and an economic downturn, many are acting with hesitancy, which has seen sales slow. In November, sales counts in Auckland declined 43.5% annually.
An easing of buyers across the board
Typically, owner occupiers have been the most active buyer group across the Auckland region. Backed by equity, securing finance is not as much of a barrier for current owners.
However, Auckland salespeople report a lighter presence across all buyer groups, largely due to rising interest rates, inflation, and low consumer economic confidence.
First home buyers who still find it difficult to secure finance have had the additional barrier of rising interest rates throughout 2022. There is a feeling of frustration amongst property investors who have pulled back from the market due to legislation impacting their willingness to enter the market — for many, falling yield and capital gains mean investment is no longer attractive.
Many other regions report an increase in Aucklanders in their markets as housing affordability remains a challenge and flexible working enables people to live and work remotely
Salespeople say that although Auckland offers an attractive lifestyle — it’s expensive to sustain. This has seen more Aucklanders looking to move to other areas of Aotearoa that offer a similar lifestyle at a more affordable price.
Growth in the supercity
To meet Auckland’s demand for housing over the next 30 years, a minimum target of 408,300 dwellings has been set to provide sufficient development capacity. As a result, Auckland has seen significant numbers of new homes being built.
Most of this growth has come from multi-unit dwellings — such as townhouses and apartments — facilitated by the Auckland Unitary Plan, which became operational in late 2016. The Plan allows for higher density of housing across the supercity.
Up zoning increases the number of development opportunities by enabling more intensive developments of sites and more efficient land use. More density also allows local services such as retail, public and hospitality to become more viable. It may also reduce upward pressure on house prices over time.
Housing developments galore
There are several residential housing developments underway offering modern housing and a convenient lifestyle. South Auckland’s Paerata Rise is an integrated liveable township located between Karaka and Pukekohe. It’s a 40-minute drive from the city centre and provides approximately 4,500 homes.
Park Green is another large-scale housing development in South Auckland, located on the coastline of Manukau Harbour. Hunua Views is a popular subdivision in Drury due to its relative affordability — all house and land packages are priced under $1 million.
North of the city sits Millwater and Milldale, which are surrounded by the communities of the Hibiscus Coast. Milldale is offering properties that range in size and type to accommodate first home buyers, growing families, or retirees — building a truly integrated community.
Travelling further north up to Warkworth is Woodcocks Home development. A short drive from Warkworth town centre and with ready access to schools, health and leisure facilities, this housing development offers sections from $320,000 and home and land packages from $760,000.
The central city has seen considerable growth over the last decade, with many new apartment buildings now gracing Auckland’s downtown skyline. While the current economic conditions have seen many central city developers pull back from their plans to build in the short term, once the market cycle turns back toward growth, Auckland’s vibrant centre will surely see more cranes and more opportunity for buyers.