Steve Garland, Body Corporate General Manager, gives an overview of the current Body Corporate Market.
Although we are now back in lockdown, we have seen a noticeable upswing in the number of apartments and townhouses being listed for sale during June and July when compared to the same period in 2019. The subsequent number of sales has doubled so the apartment market seemed to have been gathering momentum before Auckland entered Alert Level 3 last week.
Consequentially, there has been a noticeable pattern emerge in that the many of the new owners are investors who are self-managing their tenanted units, rather than through an independent property manager. We would encourage those new owners to visit the Tenancy Services website so they are fully informed and compliant with legislation such as Healthy Homes, the recently updated Residential Tenancies Amendment Act 2020 and are abiding by the Residential Tenancies Act 1986. If you are an owner of a tenanted property and need help to manage your property, feel free to contact our residential division.
We are also noticing a trend towards owners switching to long term rentals and some clients changing their Operational Rules accordingly at recent AGM’s. Owners should check with their Body Corporate Manager about the Operational Rules and how this impacts on their ability to offer Airbnb options in individual buildings.
In terms of new property development we have noticed that there has been a surge in smaller projects in the first half of this year in the 10 – 15 unit size range built on sections that may have previously only had one or two buildings on site. Many of these are Residents Society entities. Housing intensification is flourishing in several inner city suburbs and right through to the outer edges of Auckland.
Proposed larger high rise towers planned for in and around the CBD are being stalled or deferred in the short term and those that were part way through construction before the first lockdown are now coming under increasing pressure to sell units off the plans to satisfy banks or provide cash flow liquidity so the developer can keep paying the builders.
Apartments within buildings under going remediation are creating tremendous pressure on financially challenged owners not to mention the Body Corporate as a whole. APM is working closely with all the major banks on a case by case basis to make sure that owners under-going remediation with mortgage finance, are being assisted at the national level not just relying on the bank manager at the branch level.
Once we get through the General Election and deeper into spring, we envisage that these trends in the apartment market will continue assuming we emerge quickly from the latest lockdown. Chat to your Body Corporate Manager if you have questions about Body Corporate living and always ensure you undergo due diligence when purchasing properties either as an investment property, or as a home.
General Manager – Body Corporate
Auckland Property Management
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