After almost four years of stagnation, the past year saw the first glimpses of a turnaround in the property market and 2013 is expected to be the beginning of another boom cycle.
We experienced the peak of the housing boom in 2007. According to statistics of the Real Estate Institute of New Zealand, Auckland’s median house price has since risen by 26.9%.
Almost all professionals and tradesmen seem to have become extremely busy.
Auckland prices rise
According to the latest key indicator report of Business, Innovation and Employment Ministry, Auckland’s house prices have increased at a faster rate than the national average, with the current average sale price placed at $620,605.
The total value of consents for new dwellings in the Auckland region increased by 41% during the year to February 2013.
There were 473 new dwellings consented in the Auckland region in February 2013, up by 51% from February 2012.
Expanding demand
The Auckland region accounted for 32% of 1493 new dwellings consented nationally.
Auckland City accounted for 37% of new dwellings consented in the Auckland region in February 2013, followed by North Shore (17%), Waitakere (9%) and Manukau (8%).
Demand is the main driver of this current boom.
There has been a distinct lack of property built in the last several years due to the downturn, which has led to housing shortage.
“Many buyers are also starting to feel that house prices are unreasonable and are waiting to see if houses become more affordable,” Quotable Value operations Manager Kerry Stewart said.
Obviously, the rental market is buoyant. Average weekly rents in Auckland are 36% higher than the rest of the country.
Points to ponder
Anyone keen on renovation or subdividing should note that there would be a considerable waiting period to get their project started.
If you are planning to do any alterations or additions to your existing house, keep the existing drawings of the house handy. If you do not have one, you can order from your local Council over the phone. They will send you (for a fee) a CD of all the drawings and documents available with them.
Free Template
In the interim, you can carefully prepare a qualitative brief for your project (renovation of an existing house or construction of a new house) before you approach a designer, who should be your first point of contact.
This will not only save their time but also enable you to communicate your expectations effectively. To help you get started, I would be happy to provide you with a free design brief template, which explains all the aspects of the tasks involved.
Please call me on (09) 8360576 or email bobby@tarzandesign.co.nz to get your template and personalise it.
A large project taken in its entirety can be overwhelming and there is always the temptation to take ad hoc decisions, instead of planning for all contingencies in the beginning. This piecemeal approach is a recipe for wasting time and money.
Bobby Banerjee is a Licensed Building Practitioner (LBP) and a professional member of the Architectural Designers of New Zealand. He completed his Master of architecture in Auckland with merit and is currently the director of an architectural design company in West Auckland. He has founded an Alliance group of nine property related professionals, who provide a wide range of services from a single point of contact. He also promotes property enhancement education through regular seminars. Email: shubh50@yahoo.com
Read another report by Mr Banerjee in this Section.
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Rising demand lifts house prices in Auckland
