Auckland, New Zealand see’s rapidly expanding house prices

With a marked shortage of land, property prices in and around Auckland are seeing a major hike and the need for high rise housing

Demand for property in Auckland is greater than the supply as thus
a huge knock on effect on the property prices. The government census showed that the population has grown faster than the property development between 2001 and 2006.

In a recent property report, by the economic researcher Motu, the biggest factor halting construction in Greater Auckland is the lack of land within the area. With the population estimated to hit 2m by 2050 the people of Auckland may not have a choice in where they live.

The shortage of land is not helped by the preference for detached housing but experts predict that in the future this preference will no longer be an option. Property investment into high density real estate or extending the green belt boundaries may be the only alternative to the lack of supply. This idea has been met by strong opposition from the local communities but the councils have recognised that this issue cannot be ignored.

This property news should be very much welcomed by current property investors or those currently considering real estate investment in Auckland. The property research figures published for 2000 -2005 showed an increase of 139% with construction costs rising by only 12%. If the experts are correct, the introduction of high rise apartment buildings will be a necessity for Auckland and along with the relatively low cost construction process should provide a nice investment for the global property investor’s portfolio.

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