Alexandra Park has sold almost all of its freehold apartments in stage one, with stage two now also selling well, says its chief executive Dominique Dowding.
She says many of their buyers so far have been ‘empty nesters’ and baby-boomers, but with interest rates set to fall to record low levels after the Reserve Bank’s announcement last week, apartments for sale will become an attractive option to even more people.
“More and more people are feeling comfortable about buying good quality apartments off the plans - our buyer statistics show that as do recent Auckland-wide real estate figures. A further fall in interest rates will only bring more people into the market and into our display suite and so that’s really exciting,” says Dowding.
Pete Evans, national director of residential property marketing at Colliers International, agrees that falling interest rates will get renters thinking.
“With apartments at Alexandra Park starting from $590,000 more people will be doing their sums, particularly when you also consider rents will only rise and capital gain for property owners remains strong in Auckland.”
“Buying an apartment will actually become more affordable than renting for many people, when you consider Trademe now says the average rent for most Aucklanders in a typical property is $499 per week.
“Obviously many will now be able to secure a mortgage rate much less than 5% so buying becomes even more doable,” says Evans.
Dowding says people are combining low mortgage rates with good research.
“(Buyers) are particularly keen to talk about urban design, architecture, construction materials and workmanship. Not to mention a safe and liveable community as well as enjoying a strong capital gain. That’s exactly our proposition and it’s working.
“All these large residential developments going on simultaneously around Auckland seem to be really energising things. A further fall of interest rates will only see more people this summer enter the real estate market and that’s got to be good for property ownership rates and the Auckland housing market all round,” says Dowding.