The Auckland property market changed the introduction of the Auckland Unitary Plan (AUP) in 2016. This change has fundamentally altered the property investment landscape, forcing investors to rethink their strategies. The age-old motto, “location, location, location,” while still holding some weight, is no longer the sole determinant of property value.
The Old View: Central Auckland Dominance
Prior to the AUP, it was clear: invest in central Auckland. The limited land supply in the city centre meant that property values were consistently on the rise. Buying a smaller unit and adding a bedroom was a common strategy to maximise returns, with a historical investing trend of yield over capital gains. While still a strategy for some, there are many other opportunities with the AUP.
The New Reality: Development Potential
The AUP has opened the floodgates for development, increasing the supply of residential properties across Auckland. While this has levelled the playing field in some respects, it has also created new opportunities for savvy investors.
In 2016, Lucia made two strategic investments: a 100m² unit in Epsom for $1 million and a full site in South Mt Wellington for $650,000. Fast forward to 2022, and the outcomes are quite different. The Epsom unit, after a $92,000 renovation, sold for $1,330,000. While this represents a healthy profit, it’s worth noting that similar new-build apartments in the area are selling for comparable prices. This raises questions about the potential for future capital growth.
In contrast, the Mt Wellington property, located on the border of Mount Wellington and Otahuhu, sold for a staggering $1,500,000. This significant increase in value is a direct result of the land’s development potential.
So, where should you invest your million dollars?
The answer is not straightforward. While central Auckland still offers attractive opportunities, the potential for significant capital growth may be limited by increased competition from new developments. On the other hand, suburban properties with development potential offer the chance for substantial returns, but they also come with different risks and require a longer-term investment horizon.
Ultimately, the best investment strategy depends on your individual financial goals, risk tolerance, and market knowledge. Diversification may be key, with a mix of central Auckland and suburban properties providing a balanced portfolio.
Key considerations:
By carefully considering these factors, investors can navigate the evolving Auckland property market and maximise their returns.
If you’re eager to unlock your own potential in Auckland’s property market, whether you’re a first-time buyer or a seasoned investor, Lucia Xiao is here to guide you. Join us for her upcoming workshop to gain insights and knowledge that can help shape your property investment journey. Don’t miss out – CLICK HERE to learn more and take your first steps towards property success!
© Copyright 2025 Lucia Xiao Property Investment Mentor. All Rights Reserved.
© Copyright 2025 Lucia Xiao Property Investment Mentor. All Rights Reserved.