Colliers’ prediction of the 10 best areas for future residential growth in 2020
National Director of Residential Projects Pete Evans says the areas have been selected based on changes or improvements already underway and planned. These changes and improvements make the selected areas more desirable for residents and investors leading to greater opportunities for capital growth in the future.
Evans says during 2019 developers were focused primarily on catering to first home buyers’ needs as they have been the driving force behind new developments and the type of dwellings that are being supplied.
“The Auckland market has been relatively stagnant over the last three years. A cooler market has opened the opportunity for first home buyers and with historically low interest rates now is their opportunity to enter the housing market.
“In 2019 first home buyers became the most active buyers, with the majority looking for well-located apartments and terrace homes that are priced between $500,000 - $650,000, rather than a new home that's likely to be at least 25km from the CBD adding travel time and cost.
“However recently investors have started returning to the market, a trend that we anticipate continuing in 2020, which will provide sales momentum and construction activity projected to pick up throughout 2020.”
“The focus in 2020 will remain on the supply of affordable homes and regeneration of traditionally less expensive suburbs.
“We believe the tide is turning from strong growth in the regions to the start of the growth phase of a new cycle in Auckland.
“Government and council investment in infrastructure are focused on more affordable suburbs which is improving the liveability of these areas."
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