Auckland real estate commentary often focuses on the city’s central, northern and western suburbs. Eyes on South Auckland are rare.
But property values in South Auckland have managed to hold steady while other parts of Auckland dropped, and suburbs previously ignored by first home buyers as being too down at heel or unconnected to the rest of the city are starting to become buying hot spots.
The latest OneRoof Property Report saw Mangere and Mangere Bridge outstrip much of the rest of city for house price growth, and with increased attention from developers and more money flowing in for improvement, the south is finally getting its time in the sun.
It’s happened quickly, too, says Tom Rawson, who has grown the Ray White Manukau office, as well as offices in Manurewa and Mangere over six years. He says it comes down to the potential that was unlocked when the Auckland Unitary Plan became operative at the end of 2016.
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“In the last housing cycle, it was the single house on 800 sq m section to buy and hold that was very popular. Now, people are taking those off and putting multi-units up.”
Rawson, who was born in Papatoetoe and grew up in Whitford, says that buyers have long term intentions, looking five or more years ahead, as bigger parcels of land are opening up.
The key, as he’s learned in his own development a ten house block in Papakura that replaces two single family houses, is amenity. Same as in the city proper, people want to be close to the town centre, within walking distance of shops and public transport, so developers are “piling in” to old town centres like Manurewa or Papakura.
Major projects such as the MIT building with a rail and bus interchange are transforming the south. Photo / file
Median values are the lowest in the city with Clendon Park at $545,000, Otara at $560,000, Papakura at $610,000 and Manurewa at $625,000. But the housing stock has little changed from the original 1970s houses on large sections – poorly insulated, made of cheap materials with no double glazing, so expensive to maintain.
Rawson says a certain type of density - not high rise of four floors or more but two or three level homes with a courtyard or private back yard and off street parking – appeals to both first home buyers and “last home buyers” (that is, baby boomers downsizing from the big family home).
Investors are coming back into the market as interest rate drops, he says, but many houses are still owner-occupied. As he reels off the changes in Otara, Favona, Mangere and Weymouth, Rawson can identify the appeal of each suburb to certain buyers, noting that after slipping back in 2018, prices have picked up again this year and auctions are back in favour.
Town centres like Mangere and Otara are more than just shopping centres, they are the social hubs of their community, says Katja Lietz of housing organisation Kaianga Ora. Photo / file
He’s less certain about the furthest reaches of the south, places like Waiuku and Pokeno, where buyers get good new houses but suffer congested and slow commutes. “If there was a train, people would just jump on it,” he says.
Easy access to the city commuter ferry from Pine Harbour is making a dramatic difference to the type of buyers, although access to the commercial and industrial areas of Wiri, Manukau and the airport is just as important.
Rawson picks Otahuhu as starting to move, with large sections zoned town house and apartment, a proper town centre, motorway access and the huge work opportunities of Sylvia Park right next door.
Katja Lietz acting chief of urban development and planning for housing organisation Kaianga Ora, says that their work in Mangere is deliberately about putting the community first for people who feel a great sense of identity and ownership of their neighbourhood.
“As the housing stock grows, then people move in from outside. But for a lot of people who grew up in Mangere, we want to facilitate them to stay there and have loads of choice.
“It’s aspirational for them to stay there as young professionals. Wouldn’t it be great if you’ve grown up there, you have the pull to go back, you can afford it and it suits your lifestyle.”
Lietz says that in many suburbs like Mangere the housing stock hasn’t changed much since the 1950s three bed houses on large sections, so the aim is to diversify house sizes and types for both state and market houses, with smaller apartments for young families or older people, through to bigger family houses.
With public transport, Lietz points out, Mangere, like Mangere Bridge and Onehunga are close to the city and major employment and have lively town centres that are social hubs for the community, not just about retail.
Locals are welcoming the new housing choices, and can see that there’s a long term vision and a cohesive, considered approach that’s going to serve them well.
New developments like Kotuitui in Manukau are adding warm, well-designed housing in previously wasted land. Photo / supplied
Peter Evans, whose company Colliers is marketing Kotuitui, a housing development of some 300 new houses on the edge of Puhinui Reserve, says things like the new MIT building, the bus and train upgrades, and even the upgrading of the Puhinui stream are all building the potential of the south.
“There’s transformation all over the place. People will see the transformation of social housing as they did in Northcote. I’m a big supporter of housing close to amenity, particularly in the south where people can jump on the bus or train and it’s affordable and quick, saves time and cost.”
Evans says home buyers are doing the math, figuring what they save on transport can be budgeted back into their purchase price. New housing stock is replacing the old 1970s houses with poor windows or no insulation, and he says that too is transformational.
The sorts of houses people can now buy are better suited to the young urban professionals, he says, who don’t want the big (in some cases, six or seven bedroom) houses of their parents, at affordable prices around $600,000 - $650,000 with two or three bedrooms.
“They want a home that can last them for a good five years, even ten, and they want a terrace product rather than an apartment, with grounds for cooking and secure place for the little kids to play. There are common parks for the big kids, it’s not in a backyard any more.”
The young professionals want to live around train stations, but many workers are heading to work in the growth corridor around the airport and Wiri.
But Evans says that while old south towns like Papatoetoe and Otahuhu have the access and main street amenities, until a big planned development driven by Panuku happens, piecemeal development won’t be transformational in the way it is in Mangere, Otara or Manukau which are being master planned.
“It will be interesting to see how the light rail plays out or whether it’s the old rail link through Onehunga. But they’ll all grow in density and quality because they are all so quick to get into the city, and there’s more opportunity than in the greenfields sites much further out and without trains.”
