Lixing's Property Picks: How much investment and development potential does Pakuranga offer?
When it comes to Auckland areas where Chinese residents most like to live, the North Shore and eastern suburbs are the clear favourites. Yet discussions of the best eastern suburbs often overlook Pakuranga, an exceptionally well-located area with convenient transport links. Within 3 kilometres are two large shopping centres, Silvia Park and Botany Mall, along with a medium-sized and a small shopping centre, Pakuranga Plaza and Highland Park. Chinatown, familiar to the Chinese community, is also located here.
According to information we found on the council website, two major projects are under construction that will enhance the area's transport prospects:
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One is the Auckland Manukau Eastern Transport Initiative, known as the Eastern Busway, which, once completed, will greatly improve connections between Pakuranga, Botany and other surrounding areas. Although reports in June this year suggested completion could be delayed by two years, we still have high hopes for the project. It will allow traffic travelling north and south to move smoothly through Pakuranga's natural bottleneck, greatly improving commuting across the southeast!
Eastern Busway concept illustration
The other project is the Reeves Road Flyover, linking Pakuranga Rd and Waipuna Bridge. Although such flyovers are commonplace in China, building one within urban Auckland is relatively unusual. The benefits are self-evident: it will substantially ease congestion on Pakuranga Road and Ti Rakau Road and around the area's centre, reducing traffic volumes during the morning and evening peaks by an average of 40%. This will make a very positive contribution to the area's economic vitality.
Reeves Rd Flyover concept illustration
In this edition of Lixing's Property Picks, we turn our attention to Pakuranga. How does experienced property investor Liang Lixing assess the area's potential, and what instructive property example does he have to share?
Q1: Mr Liang, are you optimistic about Pakuranga's development potential?
Pakuranga is an urban residential area between Pakuranga Bay and the Tamaki River. This long-established area offers comprehensive amenities, including shopping centres, outdoor spaces, and sports and entertainment facilities. Pakuranga Plaza is currently entering a new stage of development, while the two major transport projects will greatly ease congestion and improve travel for local residents. The area has considerable commercial value and development potential.
Q2: Have you recently found any properties in Pakuranga
or investment projects you would recommend?
Yes. I recently noticed a listing at 20 William Roberts Road, Pakuranga. Built in 1959, it has 3 bedrooms, one bathroom and one parking space. Let me discuss its advantages and disadvantages in detail:
Advantages: In an area where corner sites are exceptionally scarce, a quality corner section of 1009 square metres is a rare find. The site is in a mixed-use zone with a building height limit of 18 m, and all underground services are in place, making this a property with exciting possibilities! Potential developments include townhouses, a medical clinic, a childcare centre, or a retail and residential combination. Its location is excellent, directly opposite Pakuranga Plaza and close to major transport routes and schools. The flyover project we have just discussed, which is due to begin construction, is right next door. I believe Pakuranga's transformation will enhance the commercial value and development potential of local properties. Motorway access, public transport, shopping centres, supermarkets and schools are all very convenient from this location.
The disadvantages are also very clear: The existing three-bedroom, one-bathroom house needs a complete renovation to generate even a modest rental income, and low rent brings significant cash-flow risk. William Robert is itself a busy arterial road with considerable noise. On the corner in particular, residents have no privacy from passing traffic. Homes close to shopping centres also face certain security risks. Furthermore, obtaining a commercial loan for development would be far from easy!
Q3: What advice would you give a future buyer of this property?
The property is in a mixed residential zone. My development suggestion would be a mixed commercial and residential complex, with retail, offices or medical premises downstairs and apartments or townhouses above, designed to maximise the number of dwellings on the limited site.
Q4: Specifically, would developing this property for commercial or residential use
deliver the higher return on investment?
Returns on commercial projects vary according to the internal floor area occupied by commercial tenants and its use. For residential development, the key is how many homes can be built on the site. I recommend having an expert assess the maximum usable floor area and number of dwellings that could be designed and built. If necessary, consider purchasing an adjoining section for a combined development.
Q5: If you bought this site yourself, what would you do?
That's a good question. Put simply, a site of 1000 square metres is somewhat constrained for development. Depending on my financial capacity, I would consider holding the site while exploring the possibility of purchasing adjoining land. Increasing the land area could offer a higher return. In the meantime, renovating the existing property could generate short-term rental income while allowing longer-term planning for its mixed commercial and residential development potential.