A new study from a leading Chinese real estate business has found that New Zealand has the fastest-rising house prices in the world. Juwai's global house price index shows that house prices in New Zealand have been rising more than 10% year-on-year, topping the list of the 45 countries studied.
A new study from a leading Chinese real estate business has found that New Zealand has the fastest-rising house prices in the world. Juawai's global house price index shows that house prices in New Zealand have been rising more than 10% year-on-year, topping the list of the 45 countries studied.
Property investors have been taking advantage of this in a big way. A recent study found that one in every seven houses sold in Auckland is bought by people who own five or more properties. Encouraged by the city's growth rates and potential for strong returns on investments, many investors both domestically and internationally continue to be attracted to the Auckland property market.
Off-the-plan apartments have also proved popular with canny investors who take advantage of the time it takes for developments to be completed - during which time the value of their apartment has increased. Here's a hypothetical example of how property purchasers have been benefitting from the 10% deposit required for off-the-plan apartments:
|Apartment purchase price
|Deposit required 10%
|Value of apartment in 2 years*
|Minus initial capital outlay (your 10% deposit)
|Net profit (before costs)
* The property appreciation rate used in this example is for illustrative purposes only
While there is always an element of risk involved, Auckland's strong capital growth in recent years combined with the chronic housing shortage provides an assurance that apartments are a sound investment.
Apartment popularity grows
Apartments are becoming an increasingly popular option in Auckland with nearly 2,000 apartments having been sold off the plan already in 2016, according to the latest research from real estate group CBRE.
And with the Quotable Value House Price Index recently showing the average Auckland house value is $1,013,632 apartment options like those available at Library 27 are becoming increasingly appealing.
That appeal is only set to continue on the back of the recent changes to loan-to-value ratio (LVR) mortgage restrictions which mean that investors wanting to buy an existing home now need to have a 40% deposit. However, new builds like off-the-plan apartments generally only require 20% equity. For New Zealand residents, only a 10% deposit is required with the balance of the purchase price payable upon completion.
Prime Minister John Key recently said that young Aucklanders and those about to retire should consider apartment living. He says it's an option young people in Australia have been taking up in droves as it's a great way to get on the property ladder.
At Library 27, media and buyer interest is ramping up. Our European-designed apartments and the sophisticated standard of living they will provide is hitting a note with buyers. The aim of the project is to bring a higher standard of living to Auckland's inner-city. The meticulous attention to detail that's gone into the floor plans and design features holds a huge appeal amongst owner-occupiers.
For more information on Library 27, please explore our website or feel free to visit us at 2 Kitchener Street between 1-3pm any day of the week.