MARKET STRENGHTENS
Despite the New Zealand Herald's opinion that Auckland's property market is due for a correction or slowdown we are pleased to report a further strengthening of the Apartment market.
Significantly we sold on 19 March an 80m two bedroom "conversion" suite in Madison on St Patrick's Square for $349,000 furnished. This suite featured two bathrooms, one carpark and was fastidiously maintained. It sold originally in 1993 for $200,000 + $25,000 for the carpark and the owner then furnished it to a reasonable standard. He ran the suite as a short term "Corporate Rental" achieving big rents at times but it is worth around $500 per week on a periodic basis. This would give around 6% net return.
The building was renovated from offices to apartments by Symphony Group in 1993 and while not glamorous or featuring balconies its downtown setting above the Square is very attractive.
The buyers were Japanese investors.
The Real Estate Institute statistics for February were 9940 national sales (January 8404) and the median value rose 1.4% while "days to sell" dropped slightly. This reflects our assertions in the City Apartment Market that attitudes are positive and sales healthy and firming.
Of real interest are "The Aussies".
No, it's not an invasion of people who can't quite speak right (yes I am sometimes confused with them) but a steady and increasing volume of deals are being consummated to "our cousins" who see:
1) No stamp duty
2)No capital gains tax
3) 6% to 8% real returns compared to 2% to 3%
4) big buying opportunities with their heavy dollars.
And they are comfortable with dealing with New Zealanders because they think we all speak the same language.
Their influence is such that our Projects Manager, Gary Hendrick, has just spent a week in his hometown of Melbourne investigating our setting up displays there.
Or at least that's what he said he was doing.
Watch this space and thanks for looking at City Sales Ltd
MARTIN
