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Auckland CBD retail rents have jumped 12.4 per cent in the third quarter of 2015.
Auckland houses are not the only property prices rising, with retail rents in the city’s CBD reaching unprecedented heights.
A new wave of luxury brands including Top Shop are being blamed for a rise of 12.4 per cent in the third quarter of this year.
The research, released by commercial real estate company CBRE, revealed the jump to $3400 per square metre a year for Queen St was the highest rise since 2008.
Auckland’s CBD will be inundated with building projects in the next few years, with motorists warned to avoid driving in the central city.
Work on the City Rail Link, a new convention centre and numerous apartment towers and offices are already underway or scheduled to begin next year.
The CBRE report follows the release of Colliers’ 2015 New Zealand Retail Report, which highlighted massive demand for retail in Auckland.
9 November 2015
A large apartment in the old Devonport power station was sold at auction last week, and Bayleys agents concluded 2 commercial sales in Takapuna and one in Waiuku, plus leases in Rosedale & Takapuna.
Features: 330m², one of 3 apartments in the Devonport power station, 5 bedrooms over 3 levels, private terrace garden, separate self-contained accommodation
Outcome: sold at auction for $1.59 million
Agents: Prue de Bie & Diana Poor
8 Eldon St Takapuna
Features: 883m² site, 150m² commercial building, 5 parking spaces
Rent: $51,354/year + gst
Outcome: sold pre-auction for $2.2 million at 2.33% yield 132 Hurstmere Rd:
Features: 1503m² site, 1483.63m² building – retail 170.5m², office 1313.13m², deck 112m², 28 parking spaces
Rent: $459,771.85/year net
Outcome: sold in October for $7.5 million at a 6.13% yield, $4990/m²
6 Court St: Waiuku
Features: 1243m² site, 559m² floor area, 2 buildings on a single title, roadfront exposure
Rent: $48,000/year gross + gst, fully tenanted with 4 tenants
Outcome: sold at auction for $815,000
38 Constellation Drive: Rosedale
Features: 1155m² of retail space
Rent: $235,000/year net + gst
239N Rosedale Rd:
Features: 67m² retail, 2 parking spaces
Rent: $17,000/year net + gst, premises rental $254/m²
13 Barrys Point Rd, unit 1: Takapuna
Features: 136m² floor area, 3 parking spaces,
Rent: $38,000/year net + gst
Attribution: Company release.
Auckland house price should rise for another six months
Auckland house prices are expected to keep rising as demand continues to outstrip supply, according to a panel of property experts.
The panel of property managers, valuers, agents and brokers was assembled by the Property Institute, which represents valuers, to give a feel for how the market is heading every quarter.
Institute chief executive, Ashley Church said that despite speculation to the contrary, the valuers unanimously predicted further price rises in Auckland over the next six months, across all price categories.
Fewer than half expected an increase in the number of Auckland house sales.
However, while the panel was only looking to the next six months, veteran property investor Olly Newland is less confident about the long-term position of Auckland’s housing market.
Newland says there may be some small price adjustments in the near term, but predicts the Auckland market will then be stagnant for a long period, possibly a decade.
Emily, 22 Emily Place, unit 4A:
Features: 112m², 2 bedrooms, high stud
Outgoings: rates $2010/year including gst; body corp levy $8401/year
Income assessment: $700-750/week
Outcome: passed in after one bid at $400,000 vendor bid at $700,000
Hudson Brown, 57 Mahuhu Crescent, unit 119:
Features: leasehold, 105m² on 2 levels, 2 bedrooms, 2 bathrooms, basement parking space
Outgoings: rates $1817/year including gst; body corp levy $11,166/year
Income assessment: vacant
Outcome: passed in at $250,000
City Zone, 11 Liverpool St, unit 2006:
Features: 44m², fully furnished 2 bedrooms, spaces available to rent onsite
Outgoings: rates $1212/year including gst; body corp levy $3091/year
Income assessment: $475-500/week
Outcome: no bid
132 Vincent, 132 Vincent St, unit 104:
Features: 73m², fully furnished 2 bedrooms, high stud, secure basement parking space
Outgoings: rates $2554/year including gst; body corp levy $4690/year
Income assessment: $600/week
Outcome: sold for $641,000
Marina Park, 146 Fanshawe St, unit 50:
Features: 77m², 2 bedrooms, covered parking space
Outgoings: rates $1455/year including gst; body corp levy $3575/year
Income assessment: $500-$600 pw
No end in sight for city’s growing rental shortage
Tauranga is in the grip of an escalating rental shortage – and real estate experts do not expect it will end any time soon.
Owner of Tauranga Rentals Dan Lusby said rental properties listed online had almost halved, from 300 to 150, in just two months.
(photo: Dan Lusby)
In a snapshot of rental properties available on TradeMe yesterday, 136 properties were listed, 31 in Mount Maunganui and 18 in Papamoa.
Mr Lusby said he had not seen a shortage of rental properties “to this extent”.
Tauranga Rentals received about 80 application in one week for a home in 15th Ave.
“We’ve got desperate people coming in, ringing in, emailing in saying they can’t find anywhere to live and they’ve got to get out of the house they’re in because it’s been sold, or for whatever reason, and we just can’t house them.”
Mr Lusby believed the shortage was due to “growing pains” associated with the city’s rapid growth. “Employment is high in Tauranga, with a lot of new industries which is creating new opportunities for people out of town to come here and want houses as well.”
151 Beach Rd City
Features: 1032m² site zoned strategic management area 2, 50m height limit under proposed unitary plan, 1829m² floor area on 2 levels
Rent: holding income of $278,212/year + gst
Outcome: sold to a developer for $6.8 million at $6589/m
X Gallery, 18-26 Wellesley St East:Features:
1032m2 site on Lorne St corner through to Khartoum Place, the 2712m2
X Gallery heritage building, refurbished into character retail & office space and fully leased to 12 tenants
Rent: $1.718 million + gst
Outcome: sold for confidential sums
Epsom 107 Great South Rd, unit C:
Features: 253m2 top floor of 3-level office building, leased for 4 years from February 2015 to tax advisors
Rent: $71,073/year net + gst
Outcome: sold for $1,040,013 at a 6.8% yield
Penrose 24 Greenpark Drive:
Features: 2704m² bare industrial site
Outcome: sold with vacant possession for $1.5 million at $623/m²
(Photo 9-13 Exmouth St)
9-13 Exmouth St:
Features: 1322m² site zoned mixed use, 2125m² warehouse leased back to the vendor for one year with 2 6-month rights of renewal
Rent: $285,000/year net + gst
Outcome: sold for $4.3 million at a 6.6% yield
75 France St South:
Features: refurbished 571m² 2-level office building with final 5-year right of renewal to German multinational Brentagg until May 2020
Rent: $130,000/year net + gst
Outcome: sold for $1.848 million at a 7% yield
Grey Lynn 252-258 Great North Rd:
Features: 1002m² development site zoned mixed use, 15m height limit increased to 16.5m under proposed Auckland unitary plan
Rent: holding income of $74,160/year expiring September 2016
Outcome: sold for a confidential sum
6 Tweed St:
Features: 2 dwellings on a 2905m² site, one 1360m² containing Mollies boutique hotel & function centre, the other a 239m² villa, joined by a connecting hallway
Rent: lease over the larger building to operator of the Mollies business at $283,000/year net + gst
Outcome: sold for $9.5 million
Mt Eden 25, 27, 29 Altham Avenue:
Features: 1518m² development site in 3 equal titles, mixed use zoning under proposed unitary plan
Rent: holding income of $60,000/year net + gst from vehicle storage lease
Outcome: sold for $3 million
South of the Bombays
The Pukaki Centre, Rotorua.
1144 Pukaki St:
Features: 5-storey 3653m² Pukaki Centre office building on 1711m² cbd site, fully leased to 7 predominantly government tenants
Outcome: sold site unseen for $5 million at an 8.7% yield to an American who has bought a number of high yielding regional properties through Bayleys
Waihi Beach 127 Emerton Rd:
Features: 7693m² site that was a former motel property converted to a permanent residential & holiday home & caravan complex, with licence-to-occupy income streams
Outcome: sold for $1.2 million
Wellington CBD, 76 Willis St:
Features: 655m² mixed use building on 275m² site, ground-floor retail, first-level café, third-level apartment
Rent: $248,824/year net + gst
Outcome: sold for $3.3 million at a 7.5% yield
Hataitai, 298-300 Evans Bay Parade:
Features: 2918m² site zoned business 1, 479m² building comprising 2 former dwellings with monthly lease to childcare centre licensed for 65 children
Hornby, 17 Halwyn Drive:
Features: 3404m² site, 1696m² modern industrial building, new 9-year lease to The Moving Co
Rent: $210,600/year net + gst
Outcome: sold for $3.009 million at a 7% yield
Attribution: Agency release (Bob Dey)
Residential building consents jump 20% in July, driven by Auckland intentions.
New Zealand residential building consents jumped by a fifth in July, turning around a decline in June, and spurred by increased construction intentions in Auckland.
Seasonally adjusted consents climbed to 2525 in July, from 2096 a month earlier, according to Statistics New Zealand. Of that, house building consents gained 12% to 1710 in the month.
On an unadjusted basis, new dwelling consents rose 24% to 2824 from July 2014, led by a 54% jump in intentions to build townhouses, flats and units, and a 21% rise in new apartment permits. Dwelling consents were up 8.4% on an annual basis to 25,696.
Auckland accounted for about 40% of all new consents in July, with a total of 1116, up from 849 permits in the same month a year earlier. Canterbury was the next biggest regional contributor with 650 permits, compared to 609 in July 2014.
8 units out of 10 sell at Ray White auction
Thursday 20 August 2015
8 of the 10 apartments auctioned at Ray White City Apartments today were sold under the hammer, and the other 2 went straight to multi-auction wit sales expected.
Avenue 105, 105 Anzac Avenue, unit 4C:
Features: 109m², 2 bedrooms, 2 bathrooms, penthouse level, renovated, secure covered parking space
Outgoings: rates $1960/year including gst; body corp levy $6374/year
Outcome: sold vacant for $750,000
Agents: Ryan Bridgman & Mitch Agnew
Emily, 22 Emily Place, unit 4F:
Features: 55m², one bedroom
Outgoings: rates $1249/year including gst; body corp levy $6623/year
Outcome: top offer $355,000, vendor put sale price at $475,000, passed in
Agents: Donald Gibbs & Liam Kyle
Oakwood Hall, 81 Wakefield St, unit 5D:
Features: 29m² studio
Outgoings: rates $953/year including gst; body corp levy $3206/year
Income assessment: $350/week
Outcome: sold for $238,000
Agents: May Ma & Mark Li
The Quadrant, 10 Waterloo Quadrant, unit 2107:
Features: 41m², 2 bedrooms, parking space
Outgoings: rates $1406/year including gst for unit, $123/year for parking; body corp levy $5563/year for unit, $1197/year for parking
Income assessment: $450/week
Outcome: sold for $463,000
Agent: James Mairs
Parklane, 68 Greys Avenue, unit 3C (pictured above):
Features: 113m², 2 bedrooms, 2 bathrooms, high stud, 2 balconies, parking space
Outgoings: rates $2434/year including gst; body corp levy $9746/year
Income assessment: $/week
Outcome: sold vacant for $1.32 million
Agents: Daniel Horrobin & Damian Piggin
Harvard on Hobson, 147 Hobson St, unit 4D:
Features: 37m², 2 bedrooms, secure covered parking space
Outgoings: rates $1138/year including gst; body corp levy $3837/year
Outcome: sold vacant for $345,000
Agents: May Ma & Mark Li
Fiore, 152 Hobson St, unit 406:
Features: 40m², one bedroom,
Outgoings: rates $1237/year including gst; body corp levy $2601/year
Income assessment: $425/week, fixed until end of January
Outcome: sold for $339,000
Agent: Krister Samuel
Altitude, 34 Kingston St, unit 13L:
Features: 27m², one bedroom
Outgoings: rates $1015/year including gst; body corp levy $3283/year
Income assessment: $350/week
Outcome: passed in at $237,000
Agents: May Ma & Mark Li
Zest, 72 Nelson St, unit 112:
Features: 37m², 2 bedrooms
Outgoings: rates $1089/year including gst; body corp levy $2611/year
Income assessment: $420/week, fixed until January
Outcome: sold for $290,000
Agent: Krister Samuel
Alpha, 17 Vogel Lane, unit 909:
Features: 47m², 2 bedrooms, secure basement parking space
Outgoings: rates $1385/year including gst; body corp levy $4172/year
Income assessment: $430/week
Outcome: sold for $435,000
Agent: Krister Samuel
(source Bob Dey)
( click link below for video )
Property commentator Olly Newland says new rules aimed at cooling the market have actually fuelled it.
“It was a big blunder, I’m afraid, by the authorities to announce the new rules coming up [in October], and so we naturally have a rise in prices now as people try to get in first.”
Nationwide property values for July increased at the fastest annual rate in the last seven years, according to the latest Quotable Value (QV) figures.
Data shows July property values rose 10.1 percent in the past year and 4.1 percent in the last three months.
Values are now 27.4 percent above the previous market peak in 2007.
Auckland values increased 18.8 percent year-on-year, 5.7 percent over the past three months and are now 56.6 percent above the 2007 peak.
Papakura was once a sleepy rural village on the outskirts of south Auckland, and is now at the centre of a property boom, with values rising 22 percent.
Business owner Fay Day says it’s “pretty scary”.
“It’s frightening for the young people and it’s just gone crazy.”
QV national spokesperson Andrea Rush said there has been a definite upward swing in market activity in the upper North Island.
“This is especially evident in Hamilton, but also in Tauranga, Whangarei, and the Franklin, Hauraki and Waikato districts.
“There’s also been increased interest from Auckland investors in the Wellington and Dunedin markets, and while parts of the Wellington, Christchurch and Dunedin markets are showing some moderate increases, other
areas of these markets are flat or down slightly.”
Sales volumes have been tracking down since March, which is part of the normal seasonal downturn and also the result of a lower number of homes being listed for sale during winter, she says.
“Net migration remains at record highs and there are now incentives for new migrants to move to areas outside of Auckland, so this coupled with record low interest rates is likely to see continued upward pressure on
home values as we move towards spring.”
When adjusted for inflation, the annual nationwide increase drops to 9.9 percent, values 8.8 percent above the 2007 peak.
Adjusted Auckland values have increased 18.5 percent in the past year and 33.7 percent since 2007.
Homeowners and those selling their homes in places like Papakura are reaping the rewards.
A three-bedroom house sold for $480,000 on Saturday. That’s $155,000 above its CV and $100,000 more than agents would have expected it to fetch a year ago.
A motor vehicle testing station in Christchurch and a light industrial unit with live/work potential at Onehunga in Auckland were among recent commercial property sales completed by Colliers International and Knight Frank.
The vehicle testing station (pictured) at 471 Colombo St in Sydenham, Christchurch was a 440 square metre building on a 1710 square metre site and sold for $1.6 million, providing its new owners with a 7.6% yield. The agent was Craig Edwards of Knight Frank.
The two level Onehunga building had a 140 square metre workshop downstairs and 120 square metres of space upstairs which could be used as an office or converted to residential use. It was vacant and sold for $585,000. The agents were Tim Wylie and Ben Cockram of Colliers.
Colliers also sold a 385 square metre light industrial building with eight car parks in the Wairau Valley on the North Shore, which had a long term tenant in place providing a net return of $50,400 plus GST a year. It sold for $890,000, providing its new owner with a net yield of 5.6%. The agents were Mike Ryan and Janet Marshall.