City suites are on the rise

Older investors are helping fuel a resurgence in the inner-city Auckland apartment market.

The sector is bouncing back after two years suffering from leaky building fears, over-supply and banks refusing to lend the same percentages on "shoebox" apartments as other properties.

Last year's Auckland City Council valuations showed inner-city values had dropped by 3 per cent, compared with an average increase of 12 per cent.

But property experts said activity in the market had risen by as much as 50 per cent in recent months.

They attribute the improvement to lower interest rates, first-time buyers choosing apartments instead of expensive houses and the lure of better returns than the 3 or 4 per cent offered by banks.

That's brought new investors into the market, including older people. Bayleys is targeting "mature professionals" and family investors looking for a competitive return as it markets suites on the top floor of the five-star Westin Hotel at Lighter Quay in the Viaduct.

To read the full NZ Herald story click here

Posted: 24 May 2009

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