KEY POINTS:
Auckland's more exclusive apartments are still fetching good prices, says an agent who specialises in the field.
Damian Piggin, of Ray White City Apartments, provided a list of some sales since September last year showing falls and rises but he said the deals showed quality units were holding their values.
Those who thought growth was slowing in the CBD apartment market were mistaken, he said, because his firm had made 145 unconditional sales in the final quarter of last year, up from 96 in the third quarter.
"Included in that I ran a total of 23 auctions/tenders. All have been sold at an acceptable level for the vendor except four units in Lighter Quay. The interesting thing is 80 per cent of the properties sold were to owner-occupiers," he said.
The market was sharply divided into two main sectors and demand for quality apartments was high. This was probably driving prices up.
"At the lower end of the market, prices are stable and strengthening. Demand is still extremely strong.
"A lot of first home buyers are giving up on the idea of buying in the suburbs. Investors are not looking for the yield they once were which is also creating a lot more options for individual investors."
The most popular Auckland apartment blocks were The Statesman, Metropolis, Quay West, Heritage, Highgate, The Quadrant and the character blocks like George Courts, St Benedicts Lofts, Prince Albert and Endeans, Piggin said.
The finance company collapses had made many apartment investors more secure about their assets, he said.
"We are finding that owners are very happy with the idea of actually being in charge of their own investment, rather than paying the consequences for decisions made that are out of their control," Piggin said.
He said banks were nervous about lending money on some apartments, particularly smaller units.
"One of the biggest influences on this market is the size restrictions when financing apartments and conservative attitudes the banks have towards lending."
