Auckland Housing Market vs Australia

[Guru1]

I am not sure whether people know, but Auckland housing has moved into boom conditions with it rising over 13% over the past year.

I am wondering if Auckland is a possible leading indicator for Australian housing?

NZ has also had declining interest rates.

Australian capital cities could follow Auckland into boom conditions.

 

[FormerLurker]

I think the economies and wage level to housing cost dynamic are so divergant as to nullify Auckland as a leading indicator for Australian cities in all but the broadest of terms.

 

[tobe]

maybe, you need a graph of aus capitals and auckland over the past, say 20 to 50 years and see if there is any correlation.

A correlation generally referrs to a relationship over time between two things.
Is there a correlation between Auckland and AU capitals? Maybe. can we extrapolate from that correlation that the current boom in Auckland will translate to AU capitals? Maybe.

 

[ermat]

I believe the current Auckland increases have been driven by a severe supply shortage.
The Christchurch earthquake has added to the problem.

 

[Deltaberry]

I hope so because I own apartments there in the CBD that haven't moved in donkies.

 

[Aaron Sice]

I saw house prices moving in Jakarta.

What sort of lead in time will it take to flow on here?

 

[HD_ACE]

I am not sure whether people know, but Auckland housing has moved into boom conditions with it rising over 13% over the past year.

I am wondering if Auckland is a possible leading indicator for Australian housing?

NZ has also had declining interest rates.

Australian capital cities could follow Auckland into boom conditions.

I hope so because I own apartments there in the CBD that haven't moved in donkies.

I also own property in auckland. Has been dead for a while so have not been following it the last year or two.

Might have to have a sticky beak and see if theres some equity brewing.

Cheers

 

[MTR]

NZ is investor friendly, no stamp duty

 

[zinc]

Last I heard there was a huge over-supply of inner city apartments, a lot were built for the Americas Cup (not sure) but afterwards the demand subsided, apparently.

There were some better quality apartments at bargain prices on the main street, Queen St, a couple years ago.

Not sure if you can still find a bargain in the CBD any-more however.

 

[mattnz]

Last I heard there was a huge over-supply of inner city apartments, a lot were built for the Americas Cup (not sure) but afterwards the demand subsided, apparently.

There were some better quality apartments at bargain prices on the main street, Queen St, a couple years ago.

Not sure if you can still find a bargain in the CBD any-more however.

Most Auckland city apartments are tiny, known as "shoebox apartments". Here is a great example, a 2 bedroom apartment apparently.... 28 sqm!! http://www.trademe.co.nz/property/residential-property-for-sale/auction-598504563.htm

Also watch out for leasehold apartments, where you are leasing the land. Many people got caught out with this, especially as there was normally indexing which meant that as the land values increased, their rent to the land owner also increased. Some were paying more to the land owner than they could rent the apartments out for.

Also many issues with leaking apartments, due to a lapse in the building codes for a few years. It is a huge issue to watch out for.

NZ dropped interest rates during GFC, just as Australia did, but they have just stayed at that level for a few years now. They have become used to the low interest rate environment, so are increasing their borrowings again. If Australia ends up with the official cash rate remaining at 3% or less for a few years, then I would imagine we would see similar here.

 

[DavidMc]

That apartment is TINY! If the ad is true, the yield seems VERY impressive though compared to here.

$169k / $360pw - 11% on asking price.

Where's the catch? Massive oversupply and low capital growth?

 

[tep846]

From what I see, New Zealand is still welcoming migrants, unlike Australia. Australian migration rules r getting tougher. I guess Auckland is sort of like Melbourne in 2009-2010 when a lot of migrants coming in.

 

[jclegg]

I have family in Auckland and they bought a very avg house over the bridge (but not close to beach) a couple of years ago. The cheapest house they could find that was livable was over $400K back then. They have been saying it's going up for a while now. I hope so for their sake