Aucklanders eyeing up investment and commercial properties in Taranaki
HANNAH LEE – Taranaki Daily News
Joe Carey, 26, and Vanessa Blyth, 24, have recently bought a house in New Plymouth after opting out of the near-impossible Auckland housing market.
Property investors are turning away from Auckland’s overheated property market and setting their sights on Taranaki’s residential and commercial buildings, industry figures say.
But despite sales volumes in June being 30 per cent higher than the previous year, with deals wrapped up 10 days faster, first-time buyers in Taranaki have been told there will be no repeat of the crisis currently affecting the country’s biggest city.
Garry Malcolm, owner/broker of RE/MAX NZ Team Realty New Plymouth, said as well as continued demand for residential properties, out-of-town buyers were beginning to eye up investment and commercial properties.
“We are certainly noticing greater interest across the board actually and we’re seeing a lot more investors coming from Auckland and looking at hotels and blocks of flats – that’s been quite prevalent in the last two months.”
However for less than half that price they have secured a five-bedroom house with a backyard – something they wouldn’t dream of back in the big smoke, he said.
“It was tough doing it from Auckland,” Carey said. “The selection was great, though houses were going really quick, especially in that $300,000 to $400,000 price bracket.”
They looked at a total of 19 houses in the area, fell in love with three and made offers “on a bunch”, before settling on a house in the suburb of Merrilands, he said.
Bayleys’ Property Beat monthly update reported June sales volumes for Taranaki rose 30 per cent compared to June 2015 figures.
It also took an average time of 39 days, 10 days less compared to June 2015, to sell houses in the area.
Neale Parkinson, of Bayleys, said they were seeing constant interest from Auckland in their commercial and residential listings.
“It’s a long way from the majority of our business but it’s certainly a factor in it to the extent where we had an expo where we took New Plymouth properties to the Auckland marketplace.”
The lower prices made it more appealing for commercial and residential investors to look to the regions, Parkinson said.
“The yields are so much better than what people can achieve in Auckland.”
Bayleys recently sold the former chief post office building in New Plymouth, reportedly for well over its 2013 Capital Valuation of $9,325,000. The unconditional sale will be finalised in early August.
But Professionals NZ agent Kris Rasmussen said interest from residential buyers coming from Auckland was neither new nor increasing from what he was seeing.
“I wouldn’t say it’s increased, we’ve seen Auckland buyers here for a while, it’s not quite what they’re saying that they’re flooding the gates.
“Anything under $450,000 we’re seeing multiple offers on and they’re not lasting on the market.”
Stories like the Careys were not uncommon with the median sale price in New Plymouth being $373,000, whereas Auckland’s median sale price sat around $820,000, Rasmussen said.
But there was most definitely a shortage of listings in New Plymouth, he said.
“I think it’s a worry for our buyers – they’re finding it really hard to find properties.”
– Taranaki Daily News