Auckland’s building boom and intensification over the past decade has led to some forgotten central city suburbs hitting their strides.
Two that recorded huge lifts in house prices in the last three months are nestled in between bigger, more sought-after suburbs.
One is Waterview, situated between Pt Chevalier and Mt Albert, and the other is Point England on the Tamaki River, over from St Heliers and next to Panmure and Glen Innes.
Homeowners in both suburbs have enjoyed impressive gains during lockdown. Waterview's average property value jumped 13.2% ($148,000) in the last three months to $1.272m while Point England's rose 11.3% ($143,000) to $1.411m.
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The 12-month change is even more startling. Both suburbs had an average property value of below $1m in November 2020, with homeowners in Waterview up $290,000 (29.5%) over the year and homeowners in Point England up $426,000 (43.2%).
The rise in value in Waterview reflects the growing gentrification of the area, says Gower Buchanan, who leads the Ray White offices in Mt Albert, Ponsonby, Grey Lynn and Birkenhead.
“It's sort of gone on a bit of a journey over the last decade. Historically, it's been this area where people have just driven past on their way to somewhere else,” he says.
The area has definitely see an uplift in the number of new terrace houses and apartments coming to market, the result of the city’s zoning shake-up five years ago.
Large parts of Waterview used to be dominated by brick and tile Housing New Zealand homes but most have since been bowled by developers who have taken advantage of the Unitary Plan and put up three to four townhouses on sections that used to house only one home.
The Government’s housing arm, Kāinga Ora, has also joined the action and built new homes in the area.
A three-bedroom 1950s house and back section, on Alverston Street, Waterview, sold for $3.27m. Photo / Supplied
“With the Unitary Plan really coming into force, it’s created a framework for people to be able to get an incredibly warm, modern home and be able to have a really great lifestyle as well and not have to deal with those large bits of land,” Buchanan says.
Last month a three-bedroom 1950s house and an adjoining empty section near the harbour in Waterview sold at auction for $3.27m - $3231 per sqm.
The listing agent, Ray White’s Ross Hawkins, said there were 11 bidders competing for the combined 1012sqm site on Alvertston Street, noting that the sale price was a new benchmark for Waterview.
“We have 10 unsatisfied developers we now need sites for. Some have history in the area; some are just looking for opportunity with a nice position. Being near the water means they can build something more upmarket,” he said.
The end result of these development plays is clear. Ray White agents Lisa Smyth and David Downie recently sold two new homes in Waterview, on Daventry Street, for $1.25m and $1.3m respectively. Both are low-maintenance three-bedroom, two-bathroom properties with garages and parking - perfect for young professionals or young families.
Buchanan thinks the suburb is not so much a stepping stone to other suburbs but a place to be in its own right. He puts the quarterly growth surge down to its great accessibility to other parts of the city. “I think people now see it as almost central city - you know, it's a real city fringe suburb now,” he says.
New home construction is also happening at pace in Point England, which is part of the Tamaki regeneration programme.
Harcourts agent Audrey He says the Government bought a lot of land ten years ago and changed the zoning. Development has been intense with private developers chasing now scarce land and first home buyers competing with investors for properties.
Homes in Point England are still more competitive than nearby suburbs like Mission Bay on Auckland’s waterfront, which are just too expensive for the first home buyer.
“That’s why it took off the last few years and now it’s becoming quite popular because it’s close to the nice beaches and close to the CBD and the train is going there, so there are lots and lots of first home buyers come into this market.”
A lot of the land has been snapped up by developers, she says – she sold 13 pieces of land to one buyer and all will eventually be built on.
The zoning for apartments and intensive terraced housing type developments means there is a lot of building going on and the resulting properties are selling well.
He sold a property in Waddell Avenue last year for around $1.5m but she says would now likely fetch $.1.7m or $1.8m if it went on the market today.
