While we are not presently in favour of investing in Auckland and see little growth over the next few years, it is probably the safest market in New Zealand at present.
With Auckland's percentage of New Zealand's population growth now at around 90%, resulting in their growth rate now being at least treble that of any other region in New Zealand, combined with the scarcity of land created by the size of the city, it's geographic layout and the rising number of renters, it is easy to see why Auckland is the region in New Zealand regarded as the safest for the Investor in todays uncertain times.
Historically, Auckland regions are always well represented amongst NZ's top growth areas, often accounting for 7 or 8 of the top 10 year after year. However, it is unlikely any region will see much growth over the next few years.
Auckland's population is predicted to increase by 450,000 to 1.56 million by the year 2021. Manukau City is likely to become New Zealand's second largest city over the next 10-15 years. 17 new Households per day or 6,000pa will be needed to keep pace with this sort of growth.
There are higher percentages of people renting in Auckland than any other main region due to the growing immigrant population.
Some of the additional points making the region look safer than others are:
- The population of Auckland is growing solidly compared to the rest of New Zealand.
- 90% of New Zealand's population growth is in Auckland.
- A City the size of Dunedin is created in Auckland every 4-5 years.
- There is a scarcity of land in Auckland. The City is pushing North, South and West.
- There is solid demand for rental properties due to a shortage of supply & growing demand with more people choosing or being forced to rent.
