Following on from a thread Ron Hoy Fong wrote recently. I have had some thoughts for some time on where is Auckland’s next Lower socio economic area to be?
Ron mentioned that with redevelopment and increased industrial zoning in East Tamaki that Otara has the possibility of under going a change for the better. It will be close access to where a very large amount of work is being developed.
(I think the term is re-gentrification. With improvements to infrastructure and proximity to town or work a less desirable suburb under goes a change over time. I remember Footscray in Melbourne went through this years back too and prices took off)
However if this happens what will happen to those people who live in these lower priced suburbs? Rents and house prices could increase with the demand and obviously council rates would follow. Now the cost of living for these families may be too high and they would need to move to another suburb. But where is the question?
-Flat Bush? Manukau council is rezoned for development 50,000 population increase in this area over several years.
* These will be new houses as it is vacant land currently, but new houses ask higher rents.
*Maybe the council will allow high density housing to squeeze the population into the area, which could potentially turn into Slums over time due to the high density?
*Land prices are usually determined by availability/ scarcity etc. How can land values have good capital growth? As it borders paddocks all that people need to do is chop up another paddock. This would keep land value down. If land values don't go up fast houses prices which follow will be slow.
*Limited easy access to motorway.
-Manurewa?
*Currently more expensive than Otara. Otara had always been clearly lower than prices in other Auckland suburbs. So why would they move here?
-Pukekohe or Papakura?
*These suburbs clearly have lower prices than other Auckland Suburbs this would seem attractive to the lower price bracket family.
*Has good motorway access.
Any body else have any ideas?
HOT TIP: My next pick for re-gentrification in years to come is Glen Innes (providing infrastructure, roading etc. improves). I feel this suburb has potential due to it’s proximity to town
Ron mentioned that with redevelopment and increased industrial zoning in East Tamaki that Otara has the possibility of under going a change for the better. It will be close access to where a very large amount of work is being developed.
(I think the term is re-gentrification. With improvements to infrastructure and proximity to town or work a less desirable suburb under goes a change over time. I remember Footscray in Melbourne went through this years back too and prices took off)
However if this happens what will happen to those people who live in these lower priced suburbs? Rents and house prices could increase with the demand and obviously council rates would follow. Now the cost of living for these families may be too high and they would need to move to another suburb. But where is the question?
-Flat Bush? Manukau council is rezoned for development 50,000 population increase in this area over several years.
* These will be new houses as it is vacant land currently, but new houses ask higher rents.
*Maybe the council will allow high density housing to squeeze the population into the area, which could potentially turn into Slums over time due to the high density?
*Land prices are usually determined by availability/ scarcity etc. How can land values have good capital growth? As it borders paddocks all that people need to do is chop up another paddock. This would keep land value down. If land values don't go up fast houses prices which follow will be slow.
*Limited easy access to motorway.
-Manurewa?
*Currently more expensive than Otara. Otara had always been clearly lower than prices in other Auckland suburbs. So why would they move here?
-Pukekohe or Papakura?
*These suburbs clearly have lower prices than other Auckland Suburbs this would seem attractive to the lower price bracket family.
*Has good motorway access.
Any body else have any ideas?
HOT TIP: My next pick for re-gentrification in years to come is Glen Innes (providing infrastructure, roading etc. improves). I feel this suburb has potential due to it’s proximity to town
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