13 days are already gone, 353 to come this year, let’s not waste it. Get ready for what is coming, be proactive, and enjoy all that 2020 can give.
As for the Auckland housing market, we collected the main events, changes, good to knows in the field
1. Housing market in 2020
In the second half of 2019 more and more articles appeared about increasing house prices and motivated buyers. In October 2019 One Roof has published that Auckland house prices were expected to rise 7% throughout 2020. The article assumes that the biggest house prices changes will take place mostly in North Auckland (One Roof 2019).
The ASB Housing Confidence survey, produced by AC Nielsen, also seems to align with general opinion about 2020. The survey asks 3 questions:
- whether or not now is a good time to buy
- whether prices will increase or decrease in the next twelve months
- what direction future interest rates will go
Since May, more and more participants believe it is a good time to buy a property. By December 17% agreed on this, and that is the highest percentage in the last 7 years. Since January 2019 people assume an increase in house prices. By November 27% expected higher prices in 2020 (ASB, 2019).
Based on the continuous raising of rental prices it can be assumed that rental prices will increase in 2020 as well.
2. Healthy Homes Compliance
The legal changes around rental places in Auckland will carry on this year. By 2019 July rental properties were required to have ceiling and underfloor insulation. The landlords need to:
- sign a statement of intent to comply with the healthy homes standards
- keep records that demonstrate compliance with any healthy homes standards that apply or will apply during the tenancy
By July 2020, “Landlords must include a statement of their current level of compliance with the healthy homes standards in any new, varied or renewed tenancy agreement” (Tenancy Services, 2019).
3. Developments and Programmes
Auckland does not stop developing in 2020. Kāinga Ora carries on several programs and developments in the Auckland region.
By 2022 Kāinga Ora plans to deliver a whole new housing environment in Greys Ave, Central Auckland
Since 2016, the launch of the Auckland Housing Programme, Kāinga Ora is working on around 120 smaller development around Auckland to replace old homes, as well as on major projects in the following regions: Northcote, Mt Roskill, Mangere, Oranga.
KiwiBuild continues delivering homes for firs home buyers next year. As we mentioned in our article last year, the goal of the program is to build 10 000 homes by 2031 (Metro NZ Property Management, 2019).
This article has retrieved information from:
ASB (19. December, 2019): Housing Confidence Survey: Good vibrations, https://www.asb.co.nz/content/dam/asb/documents/reports/housing-confidence/housing-confidence-Oct%202019.pdf
Metor NZ Property Management (6. December, 2019): Can KiwiBuild beat the housing market in 2019?, https://www.metronz.co.nz/can-kiwibuild-beat-the-housing-market-in-2019/
One Roof (15. October. 2019): House price boom: 10 suburbs buyers should target now, https://www.oneroof.co.nz/news/house-prices-to-rise-7-percent-in-2020-36816
Tenancy Services (2019): Healthy homes compliance timeframes, https://www.tenancy.govt.nz/healthy-homes/healthy-homes-compliance-timeframes/