Despite a slowdown in home prices in Auckland, the real estate sector in New Zealand remains a good market for investors that wish to sell their properties.
The Real Estate Institute of New Zealand (REINZ) recorded a 4.4% increase in residential real estate in Auckland. Prestige Real Estate International LTD noted that North Shore property investors, in particular, might find it attractive to sell their assets given this development. If you consider selling your investment property, you can boost your chances of achieving higher yields with the help of agencies.
These companies are mostly responsible for helping clients in closing transactions by putting their properties in a prime spot within the market.
REINZ data showed that the median home price in the country increased 0.1% in May compared to April on a seasonally adjusted basis, amounting to $540,000. By contrast, sales volume nationwide dropped by a seasonally adjusted 22.2% compared to May 2016.
It also took longer for residential listings to disappear on the market, up by 37 from 32 in the same comparable period. In Auckland, however, apartment sales reached a record figure as the new average per-square-metre price amounted to $10,000.
Demand for apartments in Auckland led to the increase in average property prices, which originally cost about $4,000 per square metre in 2005. On the other hand, average price tags for such properties initially amounted to $250,000 in the same year.
More than 10 years later, prices have reached nearly $450,000. Leasing rates for these properties have also increased — another positive attribute for investors that remain undecided whether to sell or rent out their properties.
Real estate has been an attractive asset class, although you should realise that this is not usually a liquid investment. It may be difficult to unlock an attractive yield from your property, but seeking professional advice can improve your chances of sealing a deal.