Auckland confidence picks up

Thirty-four per cent of investors now expect better performance from their rental portfolios over the year ahead, up from January but down from February last year, when it was 44%.

The Crockers Property Investment Index showed a sharp increase in the number of investors planning to increase the size of their Auckland rental property investment, to 25%. That’s up from 15% in January.

The report said fewer investors planned to make no changes. “[This is] likely a reflection of the improved performance expectations.”

Almost two-thirds of those wanting to invest are looking for residential properties that are not apartments. There was a slight drop in the interest in commercial properties, to 12% from 17% in January.

Crockers said the premium for a one-bedroom rental property in Auckland over the rest of the country had decreased over the years as the average rent prices in other areas increased at a faster rate.

But two-bedroom property rental prices had fluctuated much more.

It said the number of Auckland apartment sales in the $150,000 to $249,000 price bracket had increased since 2009, to a greater extent than other price brackets.

More recently, there has been growing demand for more expensive apartments, and less interest in those under $150,000.