The new Ponsonby
Unfashionable suburbs are catching up to their trendier neighbours.
House prices in some Auckland suburbs are twice what they were just three years ago as the city experiences a second wave of booming property values. Others are enjoying increases as high as 40 per cent in just two years.
The QV statistics signal a fresh boom as previously unfashionable areas such as Glen Innes, Te Atatu and Belmont catch up to their more desirable neighbours.
And with the traditional pre-election lull in the market almost at an end experts predict a new surge among buyers. "The second wave of property prices is what we would expect when you have a big jump in the centre," said commentator Bernard Hickey of interest.co.nz.
"Some now see Mangere Bridge as the new Ponsonby."
Hickey said a government that wanted a capital gains tax or restrictions on foreign ownership could have a chilling effect.
But with National marching ahead in the polls, buyers were likely to have fresh confidence. "If people can't afford the centre they move to the fringes and that is what we are seeing," said Hickey.
"Population pressures are such that it would be a brave man to predict property prices in Auckland."
Auckland now has 26 suburbs with an average property price above $1 million. But the big gains are now in fringe suburbs.
In the East Auckland suburb of Glen Innes a three-bedroom home on 814sq m sold in September last year for $820,000 - a 97 per cent increase from the $415,000 it sold for in April 2011.
The two-level weatherboard house on Line Rd sold three times within three years - increasing each time by close to $200,000. The property had a CV of $530,000.
QV valuer Bruce Wiggins said the area had undergone a lot of change including housing redevelopment after the controversial removal of state housing stock.
"It is also sandwiched between St Heliers and Meadowbank so is a more affordable option for those who want to live in those suburbs."
In Te Atatu Peninsula a four-bedroom weatherboard home on 956sqm sold last November for $600,000 and again in April this year for $836,000 - a 39 per cent or $236,000 increase in just six months.
North Shore suburbs such as Sunnynook, Forrest Hill, Hauraki and Belmont had also seen significant growth with some properties selling for 40 per cent more than they did two years ago.
Wiggins said areas experiencing the greatest growth had bigger sections, improved transport access, and had seen an increase in local cafes and restaurants. "Buyers are looking at these areas because they are still easy to access from the city and there has been reinvestment in the area," he said.
Last week, a four-bedroom family home on Northboro Rd in Hauraki sold for $1.7 million, 79 per cent more than the CV of $950,000 and $400,000 more than the September 2012 sale price of $1.3m.
Linda Simmons from Barfoot and Thompson said five bidders fought it out at auction.
Simmons said buyers priced out of areas like Epsom and Mt Eden were looking "over the bridge" at Hauraki, 8km from the city.
"Another factor in this area's value growth is the increasing interest of overseas buyers, who are keen to buy into the school zones, and seem to be willing to pay more than locals."
Last month, a property in nearby Belmont sold for $1.4m - $425,000 higher than its April 2012 sale price of $975,000.
City-fringe suburbs of Kingsland and Sandringham, Mangere Bridge and Otahuhu in the south and Kelston and Te Atatu Peninsula in the west also had gains. Wiggins said: "There are new cafes and businesses and the North Shore has good schools and access to beaches."
The ability to subdivide a section was a driving factor too. New council valuations for Auckland properties are due out in November.
Read more by Kirsty Wynn
Office: 09 811 8018
Mobile: 027 376 4806