Inner-city apartment sales are booming. Photo / Jason Oxenham
To accommodate the growing numbers of Aucklanders wanting to buy inner-city apartments, Barfoot & Thompson's City branch has introduced an auction each week, catering solely for apartments.
"The Auckland apartment market has a lot of energy around it," says Sandra Forrester, City Branch manager.
"People are starting to live in the CBD because it is such a dynamic, awesome place. It is now around 50/50 investment/owner occupancy.
"We are selling most of our stock by auction and, because business is growing so rapidly, we have a dedicated auction at the Shortland St auction room on Thursdays at 10am for the inner city and CBD fringe apartment market."
She says vendors are favouring auctions because they know the conversion rate is higher than on any other form of sale.
The average time to sell an existing apartment is three to four weeks.
"If they haven't sold in the auction campaign, either prior to or on the auction day, 90 per cent have sold within seven to 10 days post, as long as they have a list price."
She says there is also a lot of project activity in the CBD. "What we call projects are either developments being sold off the plans for apartment buildings or under construction.
"Conrad Properties, one of the biggest in the CBD, has Urba, which is on the city fringe, under construction due for completion early this year. It also has Queens Residences, which is under construction in Airedale St; that is around 200 apartments. The third one under construction is Park Residences in Albert St; and we are selling, off the plans, the Antipodean.
"Some apartment developments are targeting the owner-occupier, some are targeting the investor. The owner-occupier stock is generally more boutique, under 150 apartments; whereas the investor stock is usually over 200 apartments.
Sandra says Aucklanders will see a significant change in the CBD skyline over the next two years, as these apartment buildings start to be completed and people move into them. This will include people who can't afford to buy in the suburban areas and instead are buying apartments usually in the $500,000 to $700,000 mark, and normally with two bedrooms.
"The average size of apartment we are selling is 50 to 60 square metres. Some have parking, some don't. Parking is important for owner-occupiers."
The other 2016 initiative is Sandra's weekly video blog covering trends and developments in central Auckland, which she sends to email subscribers.
"It is not going to be necessarily focused on what is happening in the real estate market, it is more about what is happening in the CBD and city fringe."
The first video blog, launched last week is about the inner city rail link. "The next one is on the cycle ways and the third one is on the Hauraki Gulf and what is happening on Waiheke. If you live out in the suburban areas and you have an investment property or you are thinking about buying in the city, you can start to learn about what is happening in the CBD.
She says the key to the growing appeal of apartment living is people are sick and tired of sitting in traffic. "Now they have an easy walk to work. They are all ages, students, people who are obviously executives carrying their backpacks and changing into their suit when they get to work.
"People are embracing apartment living. They have more spare time ... life is super easy. You don't feel guilty because you're not out in the garden or doing housework. And more residential apartments are becoming pet friendly, plus they have easy access to cafes and restaurants."