Grafton

Popular with city workers, this tiny central suburb is set for capital growth. By JANE BINSLEY.

Bordered by Newmarket, Parnell and Newton, the tiny suburb of Grafton is as close to the heart of the big-city action as you could hope to be, yet its narrow, leafy lanes retain the charm of its early history.

Housing in the area ranges from quaint old villas and bungalows in private ownership, complete with lovingly tended cottage gardens, to large, upmarket apartment developments in private, secure grounds.

Many of the older houses have been modernised with trendy renovations, although some grand old homes remain as investment properties divided into flats, often tenanted by students from the nearby university and medical school.

The area is also popular with professionals working at the nearby Auckland Hospital and school of medicine, and city workers who appreciate the opportunity to wander across Grafton Bridge to the office, and catch a cheap $5 taxi home after a night on the town. The major extension work currently taking place at the hospital is sure to drive up demand for housing in the area.

Until recently, Grafton has offered a more affordable alternative to other inner-city suburbs, such as Ponsonby and Parnell, although local agents predict an increase in value and potential for capital growth in the near future. In such a small suburb the housing stock is limited, and there are unlikely to be many homes on the market at any one time.

Apartment prices currently start at $300,000, and three-bedroom terraced townhouses go for about $500,000. Houses on smaller sites generally sell in the $500,000 to $700,000 range, while larger homes with five or more bedrooms can demand more than $1m.

In recent years apartment developments such as the high-rise Phoenix Gardens complex, which enjoys a commanding position on a rise above the city, have added to the cachet of the area.

Facilities abound in such a central location. A row of shops on Park Rd serves the immediate needs of locals, while Newmarket and the central city are only a short walk away for serious shopping sprees. The Aotea Square, Karangahape Rd and Parnell markets are all within easy walking distance.

The marvellous Auckland Domain is just across the street, a perfect lifestyle destination for jogging or a weekend picnic, and for fitness enthusiasts the Olympic Pool and Fitness Centre is just down the hill in Newmarket.

The respected Junior College of New Zealand is nearby and Grafton is in the sought-after Auckland Grammar School zone.