Signs of movement in Auckland’s property market

Strong attendance and genuine inquiries at a recent open day at Rawhiti Estate indicated that Auckland’s residential property market might be about to turn.

BeGroup Managing Director Guy Eady says that even in a flat market, there will always be buyers for good quality homes provided the price is right.

“Expectations about massive gains on the sale of the family home seem to have become more realistic. Remuera is a solid market where people tend to hold onto their properties until the market strengthens but are keen to sell when prices begin to come back. Immigration remains steady and unemployment is at historically low levels – these are among the factors that typically drive house demand and prices.

“Buyer interest in Rawhiti Estate began going up in May, and June has started well. In Whangarei, where the residential market has been strong, sales at our Falls Estate have been excellent,” says Guy.

Remuera's property market is typically strong as owners tend to ride out the bumps.

Property commentators are already adjusting their forecasts for the residential property market in 2020. Westpac Chief Economist Dominick Stephens recently said that the cancellation of a capital gains tax and a sharp drop in mortgage rates meant national house price inflation would lift from two per cent currently to seven per cent next year.

Now that the shortest day of the year has passed, Guy expects the signs of renewed momentum to continue.

“June is usually the quietest month of the year for sales. The fact that we are doing well now supports the experts’ view that the Auckland market is about to become more positive.”