Despite a Drop- Off in Apartment Sales, Auction Success Continues to Fly

Following last months trend, the total sales volume of the apartment market is down, as it is across most sectors. We believe the slowdown is in line with the market drop we seem to see every four years as an election looms near, however is also reactionary to the increased loan- to- value ratio ( LVR) restrictions, which now require investors to have a minimum deposit of 40% and banks tightening up on their loan approvals. Having said that, auctions are still performing very well. Our auction rooms are consistently full of active bidders as our success rate for apartment sales continues to hover around 80%. However, sellers looking to secure a sale – by auction or asking price – are having to adjust their expectations slightly as values have softened since last year’s market heights. For buyers and investors, we have a handful of new developments due to settle soon, including Stage 2 of the SugarTree development at the top of Nelson Street, which boasts around 240 stylish apartments. In this development ( and many others), our office has seen original owners on- selling their units at a profit, proving there are opportunities to be had. To round up – while the heat of 2016 may have left Auckland with a housing shortage, our auction- room activity, and continued interest from buyers, suggests otherwise. In this kind of market, apartments remain one of the most affordable options for owner occupiers and one of the best performing investments available. If you need expert advice on how to navigate Auckland’s apartment market, give us a call. Whether you’re looking to buy, sell or invest, we know this market like the back of our hands.