Strong demand for homes in Auckland

Friday, May 27, 2011

Strong demand for homes in Auckland

A growing number of property investors are taking advantage of favourable Auckland property market conditions, according to a new investor confidence survey conducted by the ASB Bank.

The report shows that more investors are buying homes in the New Zealand city with a view to letting them out.

Jonathan Beale, head of Private Banking and Wealth Management at ASB, commented: "The popularity of rental properties in our largest city could be due to several factors, including the relative buoyancy of the property market in Auckland. However this popularity follows a flatter period which started a year ago, so time will tell whether this love-affair with Auckland rental property will continue, especially considering last year's changes to tax on rental property, and forecast increases in interest rates."

There are major differences in property investment confidence between Auckland and the rest of the country. The results show that while Auckland properties are in strong demand, homes in most other parts of the country are not currently viewed as strong investments.

Beale added: "We are a nation of two halves when it comes to investments. Aucklanders rate Rental Property above all other investments, while the rest of New Zealand puts Bank Deposits well ahead of everything else."

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A Place In The Sun