Auckland’s latest hot spot suburbs

19 March 2018

Auckland’s latest hot spot suburbs

• New areas feel the heat
• ‘Value for money’ suburbs rise to top
• Driven by infrastructure, new construction, lifestyle

New areas of Auckland are feeling the heat according to Barfoot & Thompson’s latest list of ‘hot spot’ suburbs, which has been released twice a year by the company since 2015.

“This list includes suburbs we haven’t seen in the running since 2016, and some completely new to the top 20,” says Managing Director Peter Thompson.

“Unlike previous lists, this one is not headed by high-end suburbs, but includes a number of up-and-coming neighbourhoods, many in the midst of major growth and regeneration.”

Glen Innes moves to the top spot, from 13th in the first half of 2017, with 19.2% value growth and a median price well past the $1 million mark. In second and third place, Mt Albert and Orewa return to the list for the first time since early 2016, with 19% and 10.9% value growth respectively.

The balance of the list features many newcomers including Pukekohe, Ranui, Mt Roskill, Hobsonville and Takanini, each with value growth between 4.5% and 10.8%.

Barfoot & Thompson’s list of Auckland’s top 20 suburbs was compiled from sales records comparing July to December 2017 to the same period the previous year. Only suburbs with the highest percentage growth in median price, and 20 or more sales for both periods, made the cut.

“Many of these suburbs, particularly Glen Innes, Orewa, Pukekohe and Hobsonville, are seeing significant investment in new housing and community infrastructure.

“Value is also being placed on good transport links. Most of the listed suburbs are in close proximity to motorways and are well serviced by bus and train stations, or, in the case of Hobsonville, a ferry service straight to downtown Auckland.

“Affordability is likely also a factor in these suburbs’ rise to the top, with eight recording median values under our overall 2017 median of $843,583, and just over half of the list having a median under $1 million.”

Mr Thompson says the strength of the company’s ‘hot spots’ approach is in how it reflects trends in buyer preferences, market activity and the physical changes in suburbs all over greater Auckland.

"These lists provide a unique view of buyers’ preferences and their measures of value for money, and how these shift around the city over time. It tells a very interesting story as Auckland continues to grow and evolve at pace.

He notes changes in market activity over the last six to nine months means the value growth across the top 20 is more measured in comparison to previous lists, although still very strong.

“The double-digit growth experienced by our list-leading suburbs during this period is a testament to the strength of their offering to buyers.”

He says some previously high-performing suburbs failed to reach the sales number criteria, despite sustained value growth.

“For example, suburbs like Ponsonby, Mission Bay and Kohimarama continue to attract good value growth but didn’t make the list due to sales volumes below the cut-off. Vendors are clearly holding on to their prized properties.”

Suburb spotlight – Glen Innes, #1
Wayne Parfitt, who takes up the role of branch manager at Barfoot & Thompson’s new Glen Innes office later this month, says the suburb has recaptured buyer attention with its perfect mix of location, transport, community amenities and housing options.

“Glen Innes is extremely well-positioned, less than 10 kilometers from the city, and serviced by a bus transport hub and train station. It’s also home to great shops, parks and community facilities and has been the focus of a concentrated urban renewal project over recent years.

“Attracting buyer interest and value growth are an increasing number of new apartment, terraced and large family homes offering all the benefits of new construction – modern, dry and warm. Many of the more established homes have also been renovated or boast large sections, which are very desirable to families and those looking to develop in a prime location.”

Suburb spotlight – Mt Albert, #2
The established city fringe suburb of Mt Albert is catching the eye of buyers who may have previously looked for homes in more expensive neighbouring areas like Mt Eden, says branch manager Jean Smith.

“Mt Albert has so much to offer. Most importantly for many, it’s perfectly positioned for short commutes to all parts of the city by car or public transport.

“Families are also attracted to the area’s great schools and the safe, community feel of the suburb.

Reflecting the area’s growing popularity, the main shopping area is currently in the midst of a full rejuvenation by Council. “This project will give Mt Albert a real village atmosphere and make it even easier to live, work and play here.”

Suburb spotlight – Orewa, #3
Longtime local and Orewa branch manager David Carrel says he’s watched the suburb grow from a coastal holiday and retirement destination to a vibrant and diverse community.

“Orewa offers a combination of lifestyle and convenience that is compelling more people and businesses to make the move north, which is in turn driving development.

“People now recognise the ‘bang for buck’ available in Orewa, whether it’s an entry level home or a large, luxurious new build. You can put in a day’s work in the city or on the Shore, and for just a little further on the motorway north, come home to a beautiful beach community at a lower cost than you could elsewhere.”

Suburb spotlight – Pukekohe, #4
Once a country town on the edge of the greenbelt, Pukekohe is coming of age and growing with pace.

Branch manager Nick Bates says the town is emerging as a hub in its own right and will continue to see investment in infrastructure and housing over the coming years.

“There is an overall feeling of energy in the town centre, and it’s backed up by big plans in transport, education and housing in the pipeline.

“In particular, a surge in new build homes is attracting more people to Pukekohe. They can have the perks of modern construction and a more rural lifestyle, all within a short distance from Manukau or a manageable commute to Auckland city.

Barfoot & Thompson’s Auckland Hot Spots, Jul-Dec 2017

*Median sale price (the middle price among sales in each suburb) was chosen over average sale price in order to provide a more balanced and reliable view of value growth. Due to variances in sales numbers between suburbs, a comparison of averages would have been more vulnerable to influence from particularly high or low value sales. All comparisons are for the first half-year period in the year stated, to account for seasonal fluctuations. The list excludes rural sales, sections, sales of $5 million and above, and suburbs with less than an average of 20 sales for the comparison periods.

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