Growth in Auckland units?

Our Experts Answer:

Hi Adam, most economists expect Auckland property prices to continue growing over the short to medium term as we continue to have major supply issues which are going to be exacerbated further as internal migration is start to increase. I note also that inflation construction is starting to rise so expect rises in regards to both labour and material costs which are likely to push house prices up. It is hard to say how growth will go comparing inner suburbs with a property further out but with property cycles there tends to be a ripple affect which is mainly driven by owner occupied purchasers. Basically purchasers get priced out of suburbs and so start looking at the next suburbs which are further out so the cycle tend to flow outwards. because of this it means that you may be able to get a purchase at a discount further out as there may not be as much heat in the market in these suburbs yet. In regards to units note that as long as they are at least 50m2 and not multi level (otherwise some lenders will characterise them as apartments) then they shoulds still continue to be sought after and sell well. Regards, Kris Pedersen