Not the Most Liveable City in the World
The goal of making Auckland the most liveable city in the world has been subject to a significant setback. This has been due to a population growth that has not been planned or adequately accommodated.
The city has become unaffordable for many average wage and salary earners like teachers who now prefer to work virtually anywhere but Auckland city. The high cost of accommodation and the impossible traffic is the main reason for this fact.
The New Zealand government were very happy for the economic gains from the 70,000 migrants annually moving into New Zealand over the last few years. The majority have decided to settle in Auckland however the housing and infrastructure needed to accommodate the population growth has not been provided.
While those who owned property in Auckland since 2012 may be happy to have seen their property go up in value exponentially, that win fall has come at a cost.
The city now has some beaches that are permanently polluted due to an antiquated stormwater and sewer system put under pressure from population growth. Some older dwellings have not had their storm water and sewer systems separated so raw sewage is still being discharged into these beaches from these older dwellings.
The traffic problem is something everyone in the city must endure as trying to get around the place is simply a night mare during rush hours. The problem is compounded by road works that are in a catch-up mode trying to add lanes to an inadequate motorway system.
The public transport is less than average with bus lanes, cycle lanes and T3 lanes (cars with 3 occupants) mostly empty during rush hour and possibly adding to the problem as there is only one lane for regular traffic during rush hours.
There is plenty of evidence that Auckland city is not an ideal place to live and if it wasn’t for the need to live there for employment and family connections, people would rather live elsewhere.
2015 was the year capital gains were well over 20%, 2016 the year the average property price went up 12.2% and in 2017 they are expected to be sub 10%. Yields on most Auckland investment properties are well below 3% and interest rates are heading up. This would suggest that Auckland city is no longer the ideal place to buy investment property.