News: NZ apartment woe drags on

Tue, 16 Oct 07

Auckland's central city apartments are expected to continue sliding in value in the next two years, with some having already lost about 40 per cent, property investment company Hybrid Group said today...

Hybrid analyst Kieren Trass said in a report: ‘The market was dangerous for investors, with thousands of central business district (CBD) apartments vacant, and more than 1200 for sale at a total asking price of $450 million

"The CBD apartment market has been fried to a crisp by over zealous property developers and the Auckland City Council's hunger for more rates.

"To top it off, many apartment buyers were lured into buying overvalued apartments by slick and high-pressure marketing under the guise of buying a bargain and false promises of making easy money."

Mr Trass concluded:  “Apartment values look set to continue their slide in value, although the situation depends on location and quality. Rents are also expected to fall over the next two years.  Ultimately, I would warn investors against paying asking prices for Auckland CBD apartments.


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