Safari Group On The Property Market in 2023

While the property market has pulled back from its heady 2020 – 2021 rises and has come up against inflation, recession talk and a Reserve Bank with a big interest rate lever, there are some strong signs of improvement. Factors such as a strong labour market, increasing immigration, and a recovering global economy have contributed to a more positive outlook. 

Phill Sharp, Sales Manager of Safari Group, one of New Zealand’s leading property development companies, has noticed a recent surge in activity within the Auckland market. “With the borders open, more international students, tourists, and migrant workers are coming back, putting pressure on the market and attracting investors,” Sharp says. “If you work or live close to the City, you would have noticed there are a lot more people floating around downtown. 40,000 plus students are returning to campus, tourism has exploded and is expected to be at pre-pandemic levels by April next year, 10,500 migrant workers are confirmed to start arriving from February, plus office workers have returned to the CBD.”

While Adrian Orr has been hawkish, a few vocal economists are predicting The Reserve Bank to raise interest rates by 0.5%, as opposed to the previously expected 0.75% at the end of February. Longer-term mortgage rates suggest a pullback at the end of the year or into 2024 also. “Interest rates and policy do have an impact on the amount buyers can spend, but the market has a way of adapting. Although the market has slowed as buyers wait for stability on interest rates, construction costs continue to rise and have climbed 9.6% in the 12 months to December 2022,” says Sharp.

“This has resulted in new apartments off the plans and under construction at prices that cannot be matched today.” Sharp also notes a considerable jump in inquiries from the end of last year, indicating a growing interest in the real estate market. 

And for an industry already facing pressure due to rising construction costs, recent flood damage in Auckland will only add to the demand for new construction. This has already put increased pressure on rental prices in Auckland as flood-damaged properties have removed some stock from the market.  

While there are some short-term factors that are influencing the property market, Sharp highlights the importance of a long-term outlook for property, and also the age-old adage of location, location, location. According to Sharp, Safari Group primarily chooses sites close to major metropolitan cities with established public transportation and nearby shopping and dining options. The company’s developments in Parnell and Ellerslie are prime examples, with both locations being within walking distance to public transport, close to a variety of shops, cafes, and restaurants, and easily accessible to major shopping centres. “We also have to consider our hotel product and the tourism aspect with national and international travellers, where they would like to stay and what facilities are close by,” Sharp adds. 

If you are looking to invest or occupy, Safari Group has a number of options including two highlight developments in Auckland which are perfectly poised to cater for increasing demand. 

Augustus Park

Augustus Park is a residential development located in the prestigious suburb of Parnell in Auckland, New Zealand. This development offers a unique investment opportunity with freehold apartments starting from $440,000. The location of Augustus Park is highly desirable as it lies within the Double Grammar Zone and is close to the inner city, making it an attractive choice for both homebuyers and investors. With a special offer of furnished studios and one-bed apartments, Augustus Park provides a convenient and modern living experience.

The Residences at Central Park 

The Residences at Central Park is a stylish and modern apartment development located in the heart of the vibrant suburb of Ellerslie. This boutique collection of apartments offers a range of options for homebuyers, with studios priced from $399,000, one bedroom from $599,000, two bedrooms from $765,000, and dual key apartments from $960,000. This development provides a well-connected living experience with easy access to Auckland’s motorway network and a short 5-minute walk to the Ellerslie train station. From there, you can reach Newmarket in just 8 minutes or downtown Auckland in 15 minutes, making it an ideal location for those who desire the convenience of living close to the city while still enjoying the peace and quiet of suburban life.