Migration patterns have reversed from a growth to a loss pattern over the last year – more people are leaving New Zealand than arriving (long term).
However, while New Zealanders will be departing from throughout the country, a majority of immigrants tend to settle in Auckland.
Therefore, the net loss for Auckland may not be as severe as estimated.
Recent population estimates for the Auckland region were calculated by Statistics NZ in June 2011 and the prediction was that the City would have about 1.49 million people, an increase of 1.6% since 2006.
However, percentages can be misleading, as this increase (1.6%) represents an increase of 113,000 people.
At an Auckland regional average household size of 2.8 (Statistics NZ data), this represents a need for 40,357 additional dwellings since 2006.
Of course, house prices have increased considerably more than 1.6% over this period, the average Auckland median sales price in 2011 being $468,000 (5% higher than 2007 figures).
Clearly the demand for residential property, for owner occupation as well as investment, has contributed to price rises exceeding that of population increases.
Auckland Sales
Although at 2157 the number of Auckland residential properties sold in April 2012 was its highest since 2007 (and up 16% on April 2011), the median sales price was slightly down as can be expected at this time of year.
With a median sales price of $490,000, prices are slightly lower than March, but still higher than for every other April month recorded over the years.
Budgets
According to a recent Crockers Property Maintenance Survey, most property owners had an annual maintenance budget of up to 5% of their property rental income.
Although the sub-sample sizes were small, it appears that commercial landlords invest more in property maintenance than residential landlords.
Builder Availability
Builder availability has been in the news of late, with predictions of an Auckland builder shortage as builders move to work on the Christchurch rebuild and/or move to Australia. Yet when we asked, those respondents who are undertaking renovations to their investment or personal property; 62% said that there had been no change in builder availability compared to a year ago, and the remainder were split 19% each way between those feeling that builder availability has become easier or harder.
Source: Crockers Market Research, Crockers Property Management Limited, Auckland
