Excluding new-build apartment sales, the greater Ponsonby marketplace (Saint Marys Bay, Herne Bay, Freemans Bay, Ponsonby, Grey Lynn and Westmere) saw the median sell price for February jump a heady 36% from February 2020.
Supply constraints for freestanding character homes in the area remained an issue with only 51 properties sold in the month compared with 71 in February 2020.
A significant proportion of those properties sold were freestanding, 3 or more bedrooms, and all bar a handful, selling by the auction method of sale. Over 50% of February sales were completed in Grey Lynn, where buyers can still find freestanding quality homes on freehold sites that tick ‘most of the boxes’ from the late $1M mark onward.
One shift in buyer behaviour currently influencing stock constraints has been a strong move by many toward ‘buying before selling’
– a potentially beneficial strategy to help reduce the possibility of getting ‘priced out of the market’ during the time gap between the more traditional process of ‘selling then buying’.
RESIDENTIAL INVESTMENT PROPERTY CHANGES
In last month’s column we discussed the impact of investment property LVR changes for those looking to purchase an investment property. Following on from that we have seen a second tranche of changes announced affecting those already holding investment property – namely the phasing out of tax deductibility for interest rate costs against rental income, along with the extension of the ‘brightline’ test from 5 years to 10 years. These are significant changes, and investors may benefit from discussing their individual situation with an Authorised Financial Advisor before deciding on a course of action.
New builds again have been spared some of the changes, with the five-year brightline test remaining and the Government yet to determine if the removal of interest rate deductibility will also apply to new builds. Watch this space.
First home buyers will likely have less competition for entry-level homes, however supply may still be constrained as many investors hold onto their properties for longer. Also, investor demand for new builds may leave a higher proportion of older, more basic homes available for first home buyers.
Other potential beneficiaries of the changes are investors purchasing without the requirement for debt funding, or with a low level of debt required. These investors will not have to worry about interest deductibility, and will likely enjoy higher average market rents.
Certainly plenty to consider for many, and as always, we recommend that you seek independent advice when making any property decision.
BEAUMONT QUARTER – GREATER PONSONBY’S BEST KEPT SECRET
Many of you will have noticed that I sell a lot of property in the Beaumont Quarter in Freemans Bay. In my opinion it truly is greater Ponsonby’s best kept secret. I am a little biased in this regard having lived in the Beaumont Quarter for many years, however it is definitely a great option to consider for those looking for a true community amenity, security and a modernist yet timeless architectural feel. Comprising of 258 homes, the Beaumont Quarter (or ‘BQ’ as it is known by residents) features a diverse mix of 1 to 4 bedroom apartments and townhouses built over three stages during the 2000s.
Built on the historical Auckland Gasworks site, many of the historical landmarks are woven into the tapestry of the development, which includes plenty of shared green-space, a sun-soaked ambience and a true sense of quiet and serenity so close to the city. One of my favourite aspects of living in the BQ was the short walk to New World, Victoria Park and the Three Lamps Shops just up College Hill.
Having sold two Beaumont Quarter homes off-market in March, and eight over the last two years, it is always a pleasure to sell a product that you believe in and love. Further, as a previous body corporate committee member I have a deep understanding of the BQ that can help sellers with planning their campaign and buyers with understanding the long-term benefits of owning in such a well-managed complex.
If you are looking for a great value home or investment option in the greater Ponsonby area, or if you have a property in the BQ that you would like appraised, please contact me for a no-hassle obligation-free chat. Thank you for reading.
Charlotte Kofoed, M: 021 241 9394, T: 09 353 1220, www.ckre.co.nz, E: charlotte.kofoed@nzsir.com
February 2021 February 2020 January 2021
Properties Sold 51 71 24
Average Sell Price $2,114,196 $1,795,322 $1,768,208
Median Sell Price $2,205,000 $1,625,000 $1,620,000
REINZ statistics for Freemans Bay, Ponsonby, Grey Lynn, Westmere, St Marys Bay and Herne Bay. Excludes 18 new-build sales.
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