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Property giant targets Manukau

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  • Property giant targets Manukau

    New Zealand's largest property investors can't get enough of Manukau City.

    Nearly one-third of AMP's $500 million property portfolio is in Manukau City and the company wants to expand that.

    It owns 50 per cent of the Botany Town Centre and the Manukau Supa Centre, plus a property with the Vodafone call centre in Manukau.

    Those properties provide more than 1000 jobs and the retail properties generate annual sales of more than $200m.

    AMP property portfolio general manager Murray Jordan believes Manukau City has a real advantage over any other location in New Zealand.

    "There's a whole lot of immigration and migration coupled with new infrastructure and buildings and a council that's really receptive to investors," Mr Jordan says.

    During building of the Botany Town Centre the council placed a whole compliance team specifically on the project which shows the council's willingness to help new investors in the city, he says.

    "It meant we got good decisions very quickly and we could meet our budget requirements which gives investors like us security."

    The way the council works encourages investors into the city and makes it easy for them to spend money, he says.

    "They do that by having streamlined processes in-house and they have a proactive approach to infrastructure and, in particular, roading.

    "We would have to say the council is very accessible and the mayor is accessible to discuss issues that are important to the city and to us."

    One of those issues is roads which AMP sees as vital for a successful city, both from a private vehicle and public transport perspective.

    "Our customers and residents need to be able to get about their business," Mr Jordan says.

    AMP considers Manukau a great place to invest in because of the diverse and generally young population and the current and proposed infrastructure.

    "We like their acceptance of new ideas. They support their own local communities so we have a very loyal catchment area for the Botany Town Centre and the Manukau Supa Centre," he says.

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  • #2
    We have just purchased an IP in Otara so I'm keen to see any positive feedback on the area to back up my own gut feelings.

    The house is in the area close to MIT, Hillary College (Which has had a good ERO report & recently upgraded & extended) , & Otara town centre which stages the popular outdoor market on Saturdays.
    It has a high demand for rental accomodation and is close to all the P.I. churches, so it is an area in demand by new immigrant families.

    The house prices have seen an increase of 25% over the last year (as has Otahuhu & Papatoetoe) It is the just about the only area where you can still buy decent accomodation for under 180,000 and get a positive cash flow.

    I think that the coming 'so called' property & rental slump will affect the upper price bracket housing to a greater extent than more basic
    housing.
    When it comes down to it people still gotta live somewhere, why rent a $500w house when you can get one at 300w and ride out the storm.

    Ca

    Comment


    • #3
      Originally posted by casacamo
      I think that the coming 'so called' property & rental slump will affect the upper price bracket housing to a greater extent than more basic
      housing.
      When it comes down to it people still gotta live somewhere, why rent a $500w house when you can get one at 300w and ride out the storm.
      I think the situation will depend on whether you are looking at the effect of the slump on property prices or rentals.

      I believe the higher end properties will retain their resale value as there are only a few of them and they appeal to owner occupiers as well as investors. I think the absolute top end places ($1m plus) will just stagnate and the only sales will be forced sales (assuming the slump is caused by a downturn in business).

      I think the properties like yours will drop in resale value as investors find it too hard and bail out. They won't resell to owner occupiers as the people who are renting them (big generalisation here) can't afford to buy or don't want to. Assuming that the current fascination with property investing has finished, the only buyers will be hard nosed investors who I suspect will require 15 - 20% yields.

      The rental price will only change if there are more rental properties available than tenants who want them.

      Of course these are only my opinions and there are lots of people with lots of different opinions. Most people will be wrong.

      Comment


      • #4
        The resell price is not really an issue when looking at the long term (ie 10 years) Prices will fluctuate from time to time, but generlly they should increase over time.

        What is a concern is the possibilty of a reduction in rentals.

        Hopefully we can keep our tenants happy by maintaining the rent at a reasonable level and making improvements to the property.

        Ca

        Comment


        • #5
          Hi Ca

          You said:
          What is a concern is the possibilty of a reduction in rentals
          Not sure what you mean. However the item below was on NZ Herald's website. Also am not sure what this will mean.

          Auckland to get most of new state homes

          02.06.2004
          1.00pm
          Auckland is going to get nearly all the 3000 new homes that Housing New Zealand will add to its stock between now and 2007, Housing Minister Steve Maharey said today.

          The corporation will rent, buy or build 2406 homes in the city during that time, he said.

          It was given $130 million in last week's budget to increase its stock and Mr Maharey said Auckland had worse problems than other cities.

          "The Auckland region is facing a significant housing shortage due to its rapid population growth and the availability of land," he said.

          "HNZC currently has 5057 applicants on its priority waiting list -- 3150 in Auckland," he said.

          "The extra housing we will now be able to provide enables HNZC to better meet this demand.

          "It also demonstrates the different approach of the Labour-led government to its National predecessor, who had plans to sell 19,000 houses this year."

          Mr Maharey said Auckland would remain the priority area for new home acquisition because its need was greatest.

          "Nearly 80 per cent -- 2406 homes -- of the 3000 homes we plan to acquire over the next three years will be in Auckland, with the remainder being spread through other priority communities," he said.

          - NZPA
          Regards
          "There's one way to find out if a man is honest-ask him. If he says 'yes,' you know he is a crook." Groucho Marx

          Comment


          • #6
            What is a concern is the possibilty of a reduction in rentals
            Sorry Muppet, I meant reduced rental return, not amount of rental properties in the market

            you posted:
            The corporation will rent, buy or build 2406 homes in the city during that time, he said
            That great news - we already have one of our houses in Weymouth rented to HNZ and I would love to find some more.

            Basically you own the house & HNZ rents it off you for 10 - 15 yrs at market rates.
            It has to comply with their guidelines however (ie design layout, size of rooms. accessibilty, and age of the building etc.)

            Does anyone know of any RE agents who have them available ?
            The last one we just found out about by accident

            Ca

            Comment


            • #7
              Hi Ca

              Not a problem. Thought it was a good place to post the news item.

              I remember a couple of years ago that the HCNZ was advertising for houses to let.

              Remember they take a Property Managers cut if they find tenants.

              Regards
              "There's one way to find out if a man is honest-ask him. If he says 'yes,' you know he is a crook." Groucho Marx

              Comment

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