The Auckland property market is in serious recovery mode after the events which led to the world wide recession which lasted through 2008 and well into 2009. The number of mortgagee sales is starting to decline and prices are starting to firm up especially in the city fringe suburbs of Freemans Bay, Ponsonby, Grey Lynn, Westmere, St Marys Bay and Herne Bay. Although prices of the traditional villas and bungalows are holding, and in some cases increasing, the same cannot be said for apartments, terrace houses and town houses. In St Marys Bay some of the Beaumont quarter apartments owners are reeling as ground rent on leasehold properties are set to increase in 2011 and many are selling at prices below building cost just to get out, this in turn is affecting other areas of the Auckland property market.
Heading into spring after a long cold period, the market could do with a boost after poor sales numbers caused havoc in the Real Estate industry. Many sales offices are reporting sales have been the worst they have seen and many "rookie" agents haven't been able to last the sales drought.
The recent events in Christchurch are most likely to further hamper the market down south as families shaken by the 7.1 earthquake are put their houses on the market vowing never to return to the region. Unfortunately there isn't much on offer as far as major cities that are not on a major fault line. Auckland might find itself the major destination for these families and just might be the boost the Auckland property market needs to really pull itself out of the downturn.
It won't just be the real estate industry that will be hoping for a recovery, homeowners will also be hoping for good news along with property investors who have been extremely quiet over the last 24 months. Speaking to developers in the Auckland area they maintain that although they have been affected they have been able to pick up houses at cost effective prices, building materials have been readily available at discounted prices allowing excellent margins – but only if the properties sold and there are several developers with several properties ready to sell that are simply waiting for the good news of an upturn. If this doesn't happen however some might face bankruptcy although this would be a worst case scenario.
As Christchurch rebuilds itself and the country prepares for the world cup in 2011 Auckland Property owners hope that the sun will bring higher property prices and enthusiastic buyers.