Sales volumes stabilise across a spread of suburbs.
The month of March saw a return to regular seasonal sales levels for the greater Ponsonby marketplace (St. Marys Bay, Herne Bay, Freemans Bay, Ponsonby, Grey Lynn, and Westmere), with a healthy 74 sales, representing the highest area volume since October 2020. There was also a more even spread of sales across all suburbs comparative to the previous few months.
The median sell price for March increased 10% from March 2020, compared with the wider Auckland median growth of 16% in the same period. However, in dollar terms, the greater Ponsonby median growth over March 2020 was $180,000, or just under $3,500 per week over the last 12 months. Other interesting aspects of the March greater Ponsonby statistics include:
• There was a strong result for sub-$1M units and apartments (15 sold in March), perhaps reflective of increased first-home buyer activity in the area.
• Off-market sales continue to increase in proportion to advertised listings.
• The auction method remained unsurprisingly to the fore in the local market, with 65% of properties selling under the hammer, compared with October 2020s 50%. This tends to illustrate a marketplace with confidence and conviction.
• At the cold-face in April we have witnessed excellent auctionclearance rates locally, although there is some evidence of ‘investor stock’ clearance rates tapering off across wider Auckland.
• Freemans Bay took out the top two sale prices for the month at $5.2M and $3.9M respectively.
• Apartments and unit sales increased significantly over the previous few months, with the highest price achieved (excluding a Shangri-La residence) being $1.56M for a 2 bedroom apartment. We are seeing green shoots at the higher end of the apartment market (over $1.5M) particularly with developer stock which may not be affected by the new bright-line test/deposit requirement conditions announced in March.
DEVELOPERS CHANGE TACK
As several apartment developments came to completion over 2020/2021, and as construction costs continue to rise, we are seeing some established local developers refocus onto suburban townhouse projects, which are generally less expensive to construct on a square-meter rate than an equivalent-specification apartment.
This has led to a recent uptick in interest locally for adjoining Mixed-Housing Suburban zoned sites with a combined site coverage of over 1000sqm. Whilst this can potentially represent a great way to achieve a higher price than adjoining sites sold separately, developers have a specific range of land criteria that they are looking for to create a successful project. Don’t hesitate to give me a call to discuss your land development potential at any stage.
LOCAL GROWTH CORRIDORS
I am often asked about future local growth local corridors that may represent potential for improved amenity, particularly as we transition toward increased uptake of public transport over the next 10 years. My personal favourite areas in this regard are;
• The Karangahape Road / Ponsonby Road juncture, which will soon be within walking distance to the new ‘Karangahape Station’ and has proximity to Western Park, motorway links, and the emerging arts and culture district.
• Jervois Rd will experience intensification over the next few years, particularly with its ridgeline zoned for more high-density apartment developments, and growth of support amenities such as the new Countdown currently being constructed on the old Gables site on Kelmarna Avenue. This will likely make the area a more vibrant, diverse, and liveable precinct over the coming years.
Thank you for reading.
Charlotte Kofoed, M: 021 241 9394, T: 09 353 1220, www.ckre.co.nz, E: charlotte.kofoed@nzsir.com
March 2021
Properties Sold 74
Average Sell Price $1,945,250
Median Sell Price $1,945,000
March 2020
Properties Sold 81
Average Sell Price $1,992,901
Median Sell Price $1,765,000
February 2021
Properties Sold 51
Average Sell Price $2,114,196
Median Sell Price $2,205,000
REINZ statistics for Freemans Bay, Ponsonby, Grey Lynn, Westmere, St. Marys Bay and Herne Bay. Excludes 18 new-build sales transacted in February 2021.
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