Property reporter Ric Oram discovers why so many Aucklanders are keen to live in inner-city apartments
Aucklanders are flocking to inner-city living, with young people in particular drawn to "bright and shiny" new apartments.
When apartments began going up in the first half of the decade, local and overseas investors were
the main buyers.
Now, people are buying or renting them to live in.
"It's trendy for them to live in the city now," says Graham Smith, Barfoot and Thompson's manager of head office sales.
"These new products are close to nightclubs, and there's far more to do in the city nowadays, particularly at weekends."
Another real estate company, Bayleys, says the inner city has about 4250 apartments in about 40 blocks.
Nearly 1000 were built last year, and a further 1500 are expected to be built over the next two years.
As the blocks went up, investors bought them to rent out or to hand over to companies to run as serviced apartments or, in effect, hotel suites. About a third of the apartments in the inner city are serviced.
Although investors are still buying to meet a big demand from tenants, Bayleys and Barfoot have noticed more people buying for themselves.
Bayleys has this year sold 100 of about 150 terrace houses being built on former railway land in downtown Auckland.
Sue Stanaway, the company's city living sales manager, says many are people whose children have left home. They want a place in the city and another out of town. Some are "out-of-towners" who want somewhere to stay while in Auckland and a place for their children doing tertiary studies. Others are first-home buyers.
"New Zealanders are accepting apartment living," she says. "Some rented to try city living, and are now buying; others are buying more expensive apartments after starting at lower cost."
Ken and Bente Winter are moving to Princes Wharf because their three sons have grown up and left home - two now run their Danske Mobler furniture manufacturing and retailing business.
The 70-year-old, six-bedroom Tudor-style house the couple had in Epsom for 33 years has been sold for $1.32 million, and the Winters now run a charter business with their 32m Pacific Mermaid.
"The low maintenance of an apartment appeals," says Ken Winter. "You don't need to find a home-minder when you travel, and this one is near the water, where our interests now lie."
Barfoot's Graham Smith says that as each apartment block goes up, so do the prices. "People will always pay more for new."
Sue Stanaway agrees prices are rising, but says buyers are now getting better value.
Bayleys says average prices are $170,000 for a studio apartment, $240,000 for one bedroom, $375,000 for two, $625,000 for three and $900,000 for a penthouse.
