Latest survey! Nearly half of Auckland's tenants choose to rent in this area! Huge potential for commercial investment!

North Shore rents top the national rankings 

The report uses rental bonds lodged with Tenancy Services to measure quarterly average rents and rental volumes in 30 major cities nationwide. It shows that New Zealand's average rent in the first quarter of this year was NZ$491 a week, up 6.5% on the first quarter last year.

The index report shows that Auckland's North Shore has the highest rent among the 30 areas assessed, at NZ$614 a week, followed by Wellington City at an average of NZ$600 a week. However, among the 30 cities assessed, North Shore rents rose by only 2% annually, meaning weekly rents there increased by just NZ$12 over the past year. 

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Fewer international students affect Auckland city apartments

Compared with the period before the pandemic, Auckland City rents have clearly been affected. As international student numbers have gradually declined, Auckland City's average rent now stands at NZ$546, with growth of 0 compared with last year. Ashburton also recorded rent growth of 0; these are currently the only two areas with no growth. The survey index shows that falling apartment rents in surrounding areas have noticeably pulled down rents across Auckland City.

Despite being New Zealand's most densely populated city, Auckland City did not have the highest rents in this assessment, ranking 6 among the 30 cities. Auckland's North Shore topped the national rankings at NZ$614 a week, followed by Wellington City at NZ$600 and Manukau at NZ$580. Rodney and Papakura ranked fourth and fifth.

Queenstown hardest hit, with the largest rent decline

Queenstown remains the area most severely affected by the pandemic nationwide, with marked declines in both commercial leasing and the residential market. Average rents in the first quarter of this year fell to NZ$520 a week, down NZ$130 (20.1%) from the previous quarter. Overall, Queenstown's commercial and residential markets show signs of recovery this year, but remain well below last year's pre-pandemic levels.

Central Auckland becomes the most active rental market

Although central Auckland recorded no residential rent growth in this assessment of 30 cities, it is worth noting that it has New Zealand's most active rental market. According to Tenancy Services, 6533 rental bonds were lodged in the first quarter this year, representing 48% of all tenants across the Auckland region.

In other words, nearly half of Auckland's tenants chose to rent in central Auckland this year. This indicates that central Auckland also currently has the largest net population inflow. 

A large share of the population means strong commercial activity, and mixed-use commercial and residential properties in central Auckland are highly favoured by investors.

Central Auckland——A large population share and strong commercial activity

Figures from 2020 show that around 40,000 people currently live in the city centre, equivalent to the population of the entire Whanganu district. Nearly 200,000 people work in central Auckland each day, and that figure continues to rise. Mixed-use commercial and residential properties in central Auckland have remained highly sought-after in recent years, particularly in densely populated areas such as Queen St, Newmarket, Ponsonby, Mission Bay and St Lukes Rd in Mt Albert. These areas attract large numbers of people and offer established commercial amenities, including shopping centres, dining precincts and numerous large supermarkets, making them popular in the market.

Rental data show that nearly half of Auckland's renting population currently chooses to live in central Auckland, while nearly 200,000 commuters work there each day. These substantial figures indicate that central Auckland has the strongest commercial activity of Auckland's districts. Mixed-use commercial and residential property can be described as investors' current favourite investment type. Flexible development options allowing commercial or residential use, together with good rental income, make these properties highly sought-after in central Auckland.

Another reason for strong mixed-use property sales is this year's housing market intervention. The introduction of LVR restrictions and announcement of new tax policies have reduced the number of residential investors in the market, while their funds are increasingly flowing into commercial property, including mixed-use premises. It is worth noting that commercial property is currently outside the Government's newly announced tax policies.

I believe that as vaccination becomes widespread globally, a broad economic recovery is approaching, and commercial property will inevitably become a future investment hotspot.

Today's mixed-use commercial and residential property at 53-57 Asquith Avenue, Mount Albert remains highly recommended. 

Property highlights:

• Land area: 577 m2
• Floor area: 182 m2
• Flexible zoning: mixed commercial and residential use
• Mixed-use commercial and residential zones are currently highly sought-after by investors. Buyers can construct a three-storey property up to 13 metres high. This is a redevelopment zone accommodating high-density residential, commercial and retail uses. Its flexible development options offer considerable investment potential.

The property offers a full range of features:

• Freehold title
• Attractive city views
• A separate commercial area and 4 habitable bedrooms
• Spacious living areas and on-street parking
• The property is currently tenanted, providing regular rental income, and meets the Healthy Homes Standards.
• Excellent location: directly across the road from Baldwin Train Station

Option 1: work+live+rental income

The property's ground floor contains a dairy, a single-level retail shop completely separate from the upstairs area. It has a floor area of 80 square metres and rents for NZ$850 a week. The upstairs 4-bedroom home rents for NZ$720 a week, bringing total potential income to approximately NZ$1570 a week.

Rent: commercial$850+residential$720=$1570

The home is beautifully finished and can be purchased for immediate rental or provide a very comfortable home for a new family.

Option 2: a preferred area for future land banking

With flexible development options, proximity to the railway station, motorways 16 and 20, and numerous bus routes into the city centre, the property sits in the heart of central Auckland, just a few minutes' drive from St Lukes Shopping Mall, offering strong investment potential and making it a preferred location for future land banking. 

Option 3: an excellent location with established amenities

Location: The property is on the southern side of Aquith Avenue, opposite Baldwin Avenue railway station, close to motorways 16 and 20 and numerous bus routes into the city centre. Since the Waterview Tunnel opened in 2017, the area has been very popular with investors and owner-occupiers.

Amenities: The area offers highly regarded schools, including the well-known secondary schools Mt Albert Grammar and Marist College for girls. Nearby parks and public recreational facilities include Fowlds Park to the east and Mt Albert Aquatic Centre on Alberton Avenue to the south.

Overall, this is a very popular, rising area. Its excellent location, established transport links, renowned schools and flexible development zoning make the property an ideal choice for owner-occupation, commercial rental or office use.