2020 is here!
A whole New Decade!
And the property market has shaken off its Winter 2019 doldrums and activity and prices have bottomed out in late 2019 and sales are rising. As are listings and closure rates at major auction houses in Auckland, especially.
The low mortgage interest rates (the lowest in over 70 years!) are finally having a positive impact and attracting investors back into the market. In 2019, the only part of the market that rose was First Home Buyer interest which was strong, relative to other parts of the market.
Now, interest from commercial, FHB, investors and Owner Occupiers in certain areas in Auckland has definitely risen quite sharply since Oct/Nov 2019 and one major real estate company says its Auction bookings for February 2020 is double that of February 2019.
Prices year on year to December 2019 rose between 3-5% pa versus the 2.9% decline in Auckland prices in the calendar year to August 2019 so a definite upswing in the last quarter of 2019 has flowed through into 2020.
Development land in particular has been in strong demand since the holiday period with many developers looking to make full use of the Unitary Plan Medium Density rules – as a simple example a 809sqm section with 1 house upon it in Te Atatu South can be purchased for $950,000 and developed into a 8 x townhouse site and the retail price say a 2 bedroom, 62sqm townhouse would only be $590,000 to $630,000 which is VERY affordable in Auckland terms. And now 8 families or couples can live there, not just 1 family so a much more effective utilisation of the land and all infrastructure is already in place. Expect to see this medium density trend to increase markedly as the year passes.
Bank economists are also positive predicting 3% to as high as a 8% capital gain in the Auckland market in 2020 although these predictions were made prior to the Coronavirus outbreak and election day announcements which may have some dampening effect on the whole economy to some point.
However, the big fundamental drivers remain – lowest interest rates, rental and housing shortages (with an estimated shortage of 40,000 homes currently), so when demand is higher than supply, in any industry, prices typically rise. This is now beginning to occur in Auckland after a flat to slightly falling prices since the introduction of the higher LVR rules.
Year of the Rat 2020
The Rat is the first of all zodiac animals. According to one myth, the Jade Emperor said the order would be decided by the order in which they arrived to his party. The Rat tricked the Ox into giving him a ride. Then, just as they arrived at the finish line, Rat jumped down and landed ahead of Ox, becoming first.
Personality and characteristics
Optimistic and energetic, people born in the Rat year are likable by all. They are sensitive to other’s emotions but are stubborn with your opinion. Their personality is kind, but due to weak communication skills, their words may seem impolite and rude.
On the financial side, they like saving and can be stingy. However, their love for hoarding will sometimes cause them to waste money on unnecessary things.
Wishing you all a Safe and Happy New Year!