Why invest in Auckland?
Auckland is New Zealand's largest city and main hub for transportation. Located in the North Island, it is also the most populous urban area in the country with a population estimated at 1.42 million in 2014.
Auckland is one of the most business-friendly markets in the world. The city is New Zealand’s largest
economy and it continues to grow. Auckland accounts for 34 per cent of New Zealand’s GDP and is unique in the world in its scale to the national economy. Auckland’s GDP is growing at 3.1 per cent per annum, and this growth is creating new investment opportunities in a range of sectors, attracting innovators and entrepreneurs from around the world.
Auckland has delivered excellent results and returns for many investors. Auckland is home to more
than 100 multinational corporations that have established their New Zealand footprint in Auckland.
Auckland is the largest city in New Zealand with a population over 1.4 million, not dissimilar to Perth and Brisbane, and growing twice as fast as the national average.
Auckland possesses a spectacular harbour, breath-taking beaches and land shortages due to the harbour on each side of the Central Business District creates a vibrant inner city, very strong population growth, and opportunity for property price growth.
Auckland is thriving with forecasts for Auckland including the doubling of the city’s population by the 2050’s, enormous growth for an international city. According to Statistics New Zealand (March 2011), the population of Auckland city will exceed 2 million by 2031 on the high-variant scenario. With this influx of people comes high demand for Auckland real estate and rental property in particular, which will only continue to grow as the population soars.
Real estate in Auckland is also set to benefit through a shrinking supply of land available for development in the Central Business District which is expected to continue to drive demand upwards:
• Over 60% of New Zealand's population growth between 2014 and 2031 will be in the
• Auckland officially has over 33% of New Zealand's population
• Ranked third most liveable city in the world. ( 2011 Mercer Quality of Living Survey
• The demand for Auckland rental property is exceeding supply
• No Capital Gains Tax
• No Stamp Duties on purchase or on the mortgage
• No Land Tax
• No Inheritance Tax
• No restriction for Foreign buyers. You can resell your property to locals or to foreign investors.
Auckland has the most expensive housing in the country with an average price of NZ$592,000 (US$506,000) in February 2014.NZ’s property market is expected to remain strong in 2014, amidst strong economic growth. House prices in New Zealand are expected to continue rising, albeit at a slower pace, mainly due to a new rule restricting high loan-to-value ratio (LVR) lending.
Auckland continues to grapple with the stresses and strains of strong economic growth as dozens of people a week swarm into the country's largest city. Auckland enters 2014 with the best economic growth projections since before the global financial crisis.
Economists and demographers warn the gap between Wellington (the Nation’s Capital) and Auckland will expand further as Auckland continues to surge ahead and suck in jobs. With that wider gap will come both increased pressure on the Auckland housing market.
As Auckland continues to grow, so it will continue to play catch-up as it strives to cope with its ballooning population. This trend is forecast to continue for at least the next two decades.
Auckland's annual gross domestic product grew by 2.4 per cent last year, compared with less than half that in Wellington.
But as Auckland's growth momentum continues, fuelled by strong immigration, the gap between the two cities economies increases. The latest Census revealed that 9204 people moved from Wellington to live in Auckland during the seven years between 2006 and 2013.
Wellington was the second-largest source of new Aucklanders, after Christchurch. The Census showed Auckland was the fastest-growing region in the country, increasing its population by 8.5 per cent during the seven years, to 1,415,550.
Auckland also accounted for more than half of New Zealand's entire population growth between 2006 and 2013. Quotable Value figures show that house prices across the Auckland region increased by 14.4 per cent during the year to the end of January. Values were 27.2 per cent higher than the last
peak in 2007.
Professor Paul Spoonley, pro-vice chancellor at the College of Humanities and Social Services at Massey University, says the gap between Auckland and Wellington will continue to widen. Already Auckland is the home to one third of all New Zealanders, but over coming years this would increase to 37 or 38 per cent. "This degree of concentration of population is unusual," he says. "For example London and Paris both have around 18 per cent to 20 per cent of their country's total population."
Auckland is the favoured destination for immigrants. "Wellington is not a major recipient of immigrants, 60 per cent of whom settle in Auckland," he says. Immigrants generated significant economic activity both as they became established in their new city, and they tended to have higher on-going expenditure which helped generate spending and in turn jobs.
Many manufacturers have moved to Auckland, closer to their largest customer base. The drift of business northwards continues, with BP among the latest to decide to move its New Zealand headquarters from Wellington to Auckland.