Investing in Townhouses in Auckland, NZ: A Savvy Real Estate Move

In the bustling real estate market of Auckland, the quest for profitable investment opportunities leads many to the appealing segment of townhouses. As the demand for comfortable, yet affordable living spaces continues to rise, investing in townhouses in Auckland not only offers promising returns but also provides the stability many are seeking in today’s economic climate. So, whether you're a seasoned investor or considering your first real estate investment in New Zealand's largest city, understanding the dynamics of Auckland’s townhouse market is crucial.

Why Townhouses in Auckland?

Affordability and Demand: Auckland, a hub of commerce and lifestyle in New Zealand, has seen continuous growth in its population. This has spiked the demand for residential properties, particularly for townhouses which blend the allure of a suburban lifestyle with urban conveniences. Given their relative affordability compared to standalone houses for sale in Auckland, townhouses present a less prohibitive entry point for first home buyers and investors alike.

Ideal for Diverse Market Needs: The Auckland real estate market caters to a spectrum of buyers. Townhouses in residential neighbourhoods offer excellent amenities without the sprawling size that makes standalone homes daunting for small families or professional couples. Especially for those looking into their first home buyer option in Auckland, townhouses offer a practical choice blending affordability, space, and location.

Location, Location, Location: Investing in properties situated in prime locations around Auckland can yield substantial long-term benefits. With the city’s extensive public transport network and amenities, areas close to schools, parks, and shops are particularly popular. Properties in such areas, including townhouses or newly erected multi-unit developments, are highly sought after.

The Investment Outlook

Property Prices Auckland: Investing in Auckland offers potential for significant returns due to its consistent property price appreciation, fuelled by a growing population and limited housing supply, making it an attractive long-term investment opportunity in a stable market.

Long-term Appreciation: Real estate in Auckland has historically appreciated over time, making it a wise choice for those looking into securing long-term investments. Key indicators from the Auckland property market suggest that well-chosen real estate investments, such as strategically located townhouses, continue to appreciate, thereby securing the investor's capital and potential for future growth.

Strategic Positioning: Townhouses in Auckland offer investors the advantage of strategic positioning within the city's evolving landscape, providing access to vibrant urban centres, employment hubs, and lifestyle amenities. Their location within sought-after neighbourhoods enhances their attractiveness to both tenants and potential buyers, fostering steady rental income and potential for capital appreciation over time.

Tips for Prospective Investors

Engage with a Real Estate Professional in Auckland: Having a knowledgeable real estate professional who understands the nuances of the Auckland market can be immensely beneficial. They can provide insight into different neighbourhoods, upcoming developments, and the general landscape of townhouse investments. At DUVAL, we have our team on hand to answer any of your real estate investment questions. Click here to make a time to chat.

Use a New Zealand Mortgage Broker: Before finalising any investment, it’s prudent to understand your financials thoroughly. Utilise Mortgage Brokers to ascertain potential mortgage payments and assess your investment capacity. We have the connections to put you in touch with an amazing Mortgage Broker to help you through the process.

Research and Visit Open Homes Auckland: Part of due diligence is physically visiting locations, attending open homes, and assessing the property's condition and its neighbourhood. This firsthand experience can be invaluable. At DUVAL, we have sales offices on our sites for your convenience. Click here to book a time to meet one of our Salespeople there.

Stay Informed: Keep abreast of the latest news and trends in the Auckland real estate market. Regularly Check updates on market conditions, investment tips, and economic factors affecting real estate.

Investing in townhouses in Auckland is not just about buying a property but making informed decisions that align with both market trends and personal financial goals. With the right approach and thorough research, townhouses in Auckland can be both a lucrative and a sensible investment in one of New Zealand’s most dynamic markets.

Official Cash Rate Stays Stagnant at 5.5% - What does this mean?

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The Reserve Bank of New Zealand decided yesterday to hold the Official Cash Rate (OCR) at 5.5%. This means interest rates will stay relatively high for now. This helps control inflation by discouraging borrowing and spending, aiming to cool down the economy and bring inflation back to the target range.

Here's a breakdown of what's happening in New Zealand's economy, focusing on inflation:

1. Recent progress: Good news! Inflation (the increase in prices) is gradually dropping closer to the target range (1-3%). This is partly due to:

- Less demand: People and businesses are spending less as the global economy weakens.
- More supply: The labor market has become less tight, meaning businesses can find workers more easily.

2. Challenges remain: However, inflation is still above the ideal range. This means things are still getting a bit more expensive overall, even though the rate of increase is slowing down.

3. Looking ahead: There are still uncertainties that could affect inflation, including:

- Global slowdown: The weak global economy could continue to impact New Zealand.
- China's economy: If China's economic problems worsen, it could further affect global trade and prices.

4. The Reserve Bank will continue to monitor the situation and adjust policies as needed to keep inflation under control.

RBNZ OCR Decision Today: Potential Impact on Mortgages in New Zealand

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With the rising cost of living and a challenging housing market, achieving the dream of homeownership might seem daunting for many young Kiwis. However, innovative strategies and a changing landscape are offering new pathways for first-home buyers to get their foot on the property ladder. Here's a look at some emerging trends:

Investment Properties as a Stepping Stone

While purchasing a home to live in is traditionally the first step, many first-home buyers are opting for smaller, more affordable investment properties in less expensive locations. This strategy allows them to enter the market, build equity, and potentially leverage that equity to purchase a primary residence later on. News outlets like Stuff.co.nz have highlighted this trend, demonstrating the adaptability of first-time buyers in the current market.

Family Finance: The Rise of the "Bank of Mum and Dad"

With increasing house prices, many first-home buyers are getting a helping hand from parents or other family members. This support can come in various forms:

Gifted deposit: Family members can help with a chunk of the down payment.

Guarantors: Parents might act as guarantors, allowing their children to secure a larger mortgage.

Family trusts: More complex options, like establishing family trusts that invest in property, can provide long-term benefits for younger generations.

Teaming Up: Buying with Friends

Rising prices have led to another emerging trend – first-home buyers teaming up with friends or even siblings to co-purchase a property. By pooling their resources and sharing ownership, this strategy can make homeownership achievable. Just be sure to seek legal advice for a clear agreement outlining ownership shares and exit strategies.

Advantages of New and Off-the-Plan Builds

Purchasing a new-build or off-the-plan property offers several benefits for first-home buyers:

Lower deposits: Often, these properties require lower deposits compared to existing homes.

Greater borrowing capacity: You might be able to borrow more based on the expected future value of the property.

Shorter bright-line test: New-builds are often subject to shorter bright-line test periods, potentially reducing tax burdens if you sell within a few years.

Potential Impact of New Zealand Government Policies

The recent change in government could lead to further policy shifts influencing first-home buyers. Potential changes being discussed in the media include:

Increased support for first-home purchase schemes: This could expand existing programs or introduce new ones.

Tax reforms: These could potentially target property investors and create a more favorable environment for owner-occupiers.

It's Not Impossible: You Can Still Get on the Ladder

The path to homeownership might look different today, but with creativity, support from those around you, and a willingness to adapt, it's still within reach. It's about finding the strategy that works best for your situation.

Important: For personalised guidance regarding mortgages, grants, and financial assistance schemes, be sure to consult with a qualified mortgage broker or financial advisor. Stay informed about government policy changes by visiting official websites and following reputable news sources within New Zealand.

The path to owning your own home might require outside-the-box thinking, but remember – where there's a will, there's always a way!.

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HOMEOWNERSHIP ... on your terms

In an era where traditional notions of homeownership are evolving, the journey to owning a piece of real estate is no longer a one-size-fits-all approach.

The landscape has shifted, with late 20s to mid-30s trendsetters and professionals redefining what it means to own a home. Gone are the days when the dream was solely about paying off a mortgage before retirement; today, it's about getting on the property ladder in whatever shape or form that may take. Recent statistics in New Zealand underscore this paradigm shift, showing that first-time buyers are leading the charge in homeownership. They're exploring innovative avenues, from renting out properties they own to co-owning with friends and leveraging platforms like Airbnb to maximise their investment. One company at the forefront of this revolution is DUVAL, offering opportunities for aspiring homeowners to secure properties off the plan. Buying off the plan allows individuals to lock in today's prices, potentially walking away with equity upon settlement. Moreover, it provides the flexibility to organise finances and build up deposits before completion, offering a strategic advantage in a competitive market.

Recent government policies, such as the bright-line test, have levelled the playing field for investors of all ages. With the requirement to own a property for only five years to avoid taxation upon sale, compared to ten years for established homes, the barrier to entry has significantly lowered. However, the evolution of homeownership extends beyond purchasing strategies. Today, home loan lending has diversified, with individuals tapping into resources like the "Bank of Mum and Dad" and forming joint partnerships with friends to access the property market. These collaborative efforts present opportunities for shared responsibilities and rewards, making property ownership more attainable than ever before. The narrative surrounding property ownership must evolve to reflect this newfound accessibility and flexibility. It's no longer a distant dream but a tangible goal within reach, with diverse paths to success.

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RBNZ OCR Decision Today: Potential Impact on Mortgages in New Zealand

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The Reserve Bank of New Zealand (RBNZ) is set to make a crucial announcement today, Wednesday, February 28th, 2024, at 2:00 pm NZST: their decision on the official cash rate (OCR). This decision has the potential to significantly impact mortgage rates in New Zealand, and homeowners are understandably eager to know what lies ahead.

Understanding the Context:

The RBNZ has been raising the OCR steadily in recent months to combat rising inflation in New Zealand. This is deliberate strategy to cool down the economy by making borrowing more expensive. While these increases have already translated to higher interest rates for various loans, including mortgages, the question remains - will there be another hike today?

The Current Landscape:

Economists are currently divided in their predictions:

Some predict a hold: They believe the recent OCR increases, combined with other measures, may be starting to show their effect on inflation, and a pause might be appropriate to assess the situation.

Others expect another increase: They argue that inflation remains elevated, and further tightening might be necessary to achieve the RBNZ's inflation targets.

Potential Outcomes and What They Mean for You:

OCR Increase: If the RBNZ raises the OCR today, it could translate to higher mortgage repayments. This could put a strain on your household budget, so it's crucial to be prepared for this possibility.

OCR Hold: While a hold would provide temporary relief for homeowners, it's important to remember that further hikes are likely in the future as the RBNZ continues its fight against inflation.

Recent Market Development:

In an unexpected move, ASB Bank has recently lowered their 18-month fixed-rate mortgage to 6.89%, undercutting their competitors. This proactive decision could signal confidence in the market and potentially encourage other banks to follow suit, offering some temporary relief to borrowers.

Staying Informed and Seeking Guidance

It's crucial to stay informed about the OCR decision and its potential implications. We recommend monitoring the following resources:

RBNZ website: [Reserve Bank of New Zealand - Te Pūtea Matua ON Reserve Bank of New Zealand rbnz.govt.nz]

News articles: Search online for recent news regarding the OCR decision.

Remember: This information is for general informational purposes only and should not be taken as financial advice. We strongly recommend consulting with a qualified financial advisor to receive personalised guidance related to your specific situation and mortgage options. A financial advisor can help you understand the potential impact of the OCR decision on your mortgage payments and develop strategies to manage any potential financial strains.

DUVAL to invest $105 million in developments across South and West Auckland

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DUVAL, one of New Zealand’s largest urban residential property development companies has announced a $105m investment in two new housing projects in South and West Auckland.

Institutional funding has been secured for both projects taking the group’s total facilities to approximately $350 million across its development portfolio.

The company specialises in regenerating brownfield sites and building master-planned communities and the two projects Te Awa Terraces situated at Earlsworth Road, Māngere East and Sunnyvale Terraces on Awaroa Road, Sunnyvale will provide 125 new homes. Completion is anticipated to be Q3 in and Q4 2024.

DUVAL is committed to providing quality affordable and aspirational housing in the Auckland region and now has 403 homes under construction with further plans to commence work on an additional 100 homes this year.

Charlotte Clarke, Chief Executive of the DUVAL Property Group said, “I am delighted that we are starting construction on these two new projects. The outlook for the housing sector is strong over the medium term, with record migration numbers to the Auckland region and clear and present demand for housing. Auckland has the capacity for over 900,000 infill housing units within its urban-zoned land and over time this will reduce the burden on the city’s infrastructure. We anticipate housing intensification while preserving the green belt is going to be critical for the growth of New Zealand’s largest city.”

“We have to go up, not out if ratepayers aren’t going to bear the burden of unchecked urban sprawl,” Clarke went on to say.

Kristen Holland, the General Manager of Development at DUVAL, emphasised, “We are firm believers in our corporate responsibility to enhance the living conditions of our communities by repurposing land and increasing the supply of new housing.”

These investments mark the ninth master-planned community developed by DUVAL within the south of Auckland and the second within Auckland’s west.

Te Awa Terraces is in close proximity to DUVAL’s $150 million Mountain Vista Estate project where work has started on Stage 3.

Holland said, “Enquiry for new housing this year remained steady, highlighting the resilience of the sector. Stages 1 and 2 are completely sold out and Stage 3 will be released to the market in Q4 2023.”

Te Awa Terraces – Earlsworth Road, Māngere East

Te Awa Terraces will become a vibrant new community featuring 79 modern terraces situated in Māngere East, in close proximity to Middlemore Hospital, Auckland International Airport and within Auckland’s commuter belt. These architecturally designed townhouses present spacious two-bedroom layouts, one bathroom and guest toilet, and dedicated parking all set within a master-planned community.

Over the past decade, Māngere East has had an average capital growth rate of 10% p.a.*

For more information about Te Awa Terraces, visit

Te Awa Terraces

Sunnyvale Terraces – Awaroa Road, Sunnyvale

Sunnyvale Terraces will comprise 46 homes in the heart of Sunnyvale, in Auckland’s west. A peaceful suburban development and community located a short distance from West City shopping mall, Costco and walking distance to the Sunnyvale train station providing a direct link to the CBD, Newmarket and Eden Park.

Spanning two levels, these immaculately presented townhouses feature two bedrooms, large open-plan living areas, spacious bathrooms, a guest toilet, and dedicated car parking.

Over the past decade, Sunnyvale has had an average capital growth rate of 7.9% p.a.*

For more information about Sunnyvale Terraces visit

Sunnyvale Terraces

*CoreLogic (August 2023)

Comparing a Dinghy and Dark Rental Property to a Sunny Home

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In a bold new campaign aimed at first-home buyers, Auckland’s largest property development company, Du Val Group demonstrates its commitment to driving positive change for people who want to get onto the property ladder.

Du Val Chief Marketing Officer Gabrielle Byfield said, “Du Val Group holds a unique and influential position in the property industry. We believe it’s our responsibility to inform and inspire first-home buyers who dream of owning a brand-new home or want to invest in property to know that achieving their goal is not as hard as they think.

“We know it’s a bold step to compare owning and living in an affordable, high-quality Du Val property in South or West Auckland with living in a small, dingy, dark rental property in an area like Mt Eden, Newmarket, or Ponsonby with a bunch of flatmates, but if we are serious about getting first-home buyers into the property market, then we need to be doing things differently.

"Du Val is passionate about home ownership and wealth creation. With the Government removing the price cap for First Home Loans and increasing the cap from $700,000 to $875,000 for those applying for grants, now is the perfect time to talk positively and encourage home ownership,” said Ms Byfield.

Du Val Group Sales Director Nerissa Gibson adds, “There’s a lot of talk in the property and construction market about housing affordability which can easily disincentivise people from believing that they can ever afford their own home.

“We know many people believe it’s too tough and unachievable to own their own home and that it’s easier to keep renting. Our responsibility is to show them how they can overcome the challenges, and this campaign, which is deliberately bold and direct, informs those Kiwis who are currently paying high rents that their dream is achievable.

“What many people don’t realise is that Du Val’s property sites, while not in central Auckland, are located in some of Auckland’s highest growth areas and are close to key transport amenities.

“There are many compelling benefits of buying a home off the plan. Good capital gains can be made when the property value increases between paying the first deposit and when the project is completed. It also gives many buyers extra time to organise their finances before settlement,” said Ms Gibson.

Ms Byfield adds, “This marketing campaign is different for a property company, but we’re not unafraid to challenge the status quo.

“Within 24 hours of launching the campaign across key Auckland billboard sites and via our social media channels, we generated over 100 genuine leads. It was phenomenal; the video we put on YouTube was our best-performing one ever, and we had over 50,000 impressions on Facebook alone.

“After just a few weeks in the market, the number of leads has reached nearly 4,000,” said Ms Byfield.

Why has KiwiBuild Not Been a Success

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One of the challenges faced by the KiwiBuild program was the lack of interest from developers in delivering the types of housing that the program was aiming to deliver. The program was designed to deliver affordable homes for first-home buyers, but it faced several challenges that made it difficult to achieve this goal.

One of the main challenges was the cost of construction. The KiwiBuild program aimed to deliver affordable homes, but the cost of construction in New Zealand is relatively high, due in part to the cost of materials and labor. This meant that developers were often unable to deliver affordable homes at the price points required by the KiwiBuild program.

Another challenge was the lack of interest from developers in delivering the types of housing that the program was aiming to deliver. The program focused on delivering standalone homes and apartments in urban areas, but many developers were more interested in delivering higher-value, higher-density developments that were more profitable.

Finally, the KiwiBuild program faced challenges around the availability of land and infrastructure. Many of the areas where the program was seeking to deliver housing were already under pressure from a lack of infrastructure and a shortage of available land. This made it difficult to deliver new housing developments in these areas. Developers know this as they work with different town plans and councils on a day-to-day basis where we know these options are not viable.

While the KiwiBuild program had the potential to deliver much-needed affordable housing, it faced several challenges that made it difficult to achieve this goal. Addressing these challenges will require a multi-faceted approach that considers the cost of construction, the types of housing that are commercially viable, and the availability of land and infrastructure.

There are potential benefits of working with private developers who have a strong track record in delivering successful housing developments. In many cases, these developers have a deep understanding of the commercial and logistical aspects of developing housing projects, which can help to ensure that projects are delivered on time, within budget, and to a high standard of quality.

Working with private developers can also help to address some of the challenges faced by the KiwiBuild program. For example, private developers may have access to lower-cost financing or be able to leverage economies of scale to reduce the cost of construction. They may also be able to deliver a wider range of housing typologies that are more commercially viable, such as townhouses or terraced houses.

In addition, working with private developers can help to address the issue of capacity constraints within the public sector. By partnering with private developers, the government can leverage their expertise and resources to deliver housing projects more efficiently and effectively.

While there are certainly challenges associated with working with private developers, there are also potential benefits to be gained from doing so. By carefully selecting and partnering with proven developers who have a track record of success, the government can help to accelerate the delivery of affordable housing and address some of the challenges facing the New Zealand housing market.

Government Aid for Private Developers in Housing Provision

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The construction and development industry are a vital part of the New Zealand economy, providing jobs and infrastructure essential to the growth and development of the country. However, as we discussed in a previous blog post, the industry has been hit hard by the challenges posed by the COVID-19 pandemic. While the government has implemented various measures to support the sector, there are still some significant gaps that need to be addressed, particularly when it comes to funding for developers and construction companies building standard residential housing for everyday Kiwis.

One of the most pressing issues facing the New Zealand housing market is the shortage of affordable homes. The rising cost of housing has made it increasingly difficult for many Kiwis to enter the property market, particularly first-time buyers, and those on low to moderate incomes. While the government has implemented various measures to address this issue, including the KiwiBuild programme and the First Home Loan Scheme, there is still a significant shortfall in the number of affordable homes being built.

One of the reasons for this shortfall is the lack of funding available to developers and construction companies building standard residential housing. While there are various grants and funding programmes available to support the construction industry, many of these are aimed at larger-scale infrastructure projects, rather than everyday housing for Kiwis. This means that many developers and construction companies are struggling to secure the funding they need to build the affordable homes that New Zealanders desperately need.

There are several ways in which the government could address this issue. One option would be to create new funding programmes specifically aimed at supporting developers and construction companies building standard residential housing. These programmes could provide grants or low-interest loans to help cover the costs of construction, making it easier for developers to build affordable homes without compromising on quality or safety.

Another option would be to provide tax incentives or other forms of financial support to encourage developers and construction companies to build affordable homes. This could include reducing or waiving development fees, offering discounts on building materials, or providing support for apprenticeships and training programmes to help boost the skills of the construction workforce.

It is clear that more needs to be done to address the shortage of affordable housing in New Zealand. While the government has implemented various measures to support the construction industry, there are still significant gaps that need to be addressed, particularly when it comes to funding for developers and construction

companies building standard residential housing. By creating new funding programmes and providing other forms of financial support, the government can help to address this issue and ensure that all Kiwis have access to safe, secure, and affordable homes.

Property Industry Boosts New Zealand's Economy

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New Zealand's economy has been steadily growing over the years, and the property development industry has played a significant role in this growth. Property developers are responsible for creating new buildings and infrastructure, which not only boosts economic activity but also creates jobs and supports the growth of other industries.

According to a report published by the Property Council of New Zealand, the property development industry contributed approximately $29.8 billion to the New Zealand economy in 2020. This figure includes the value of new construction, renovations, and infrastructure development.

One of the key benefits of property development is the creation of jobs. The industry directly employs over 74,000 people, and indirectly supports many more jobs in related industries such as architecture, engineering, and construction.

Furthermore, property development has a significant impact on local economies. When a new building is constructed or renovated, it creates a demand for goods and services such as building materials, furniture, and appliances. This, in turn, supports businesses in these industries and helps to create additional jobs.

In addition to creating jobs and supporting other industries, property development also has a positive impact on the property market. New developments increase the supply of available housing, which can help to reduce housing prices and increase affordability. This, in turn, can help to stimulate economic growth by freeing up funds that would have been spent on housing costs, allowing individuals to spend or invest elsewhere in the economy.

Overall, the property development industry is a significant contributor to the New Zealand economy, both in terms of job creation and economic growth. With the ongoing demand for new infrastructure and housing, it is likely that the industry will continue to play an important role in supporting the country's economic development.

Investing in Townhouses in Auckland, NZ: A Savvy Real Estate Move

Why Townhouses in Auckland?

The Investment Outlook

Tips for Prospective Investors

Official Cash Rate Stays Stagnant at 5.5% - What does this mean?

RBNZ OCR Decision Today: Potential Impact on Mortgages in New Zealand

HOMEOWNERSHIP ... on your terms

In an era where traditional notions of homeownership are evolving, the journey to owning a piece of real estate is no longer a one-size-fits-all approach.

RBNZ OCR Decision Today: Potential Impact on Mortgages in New Zealand

DUVAL to invest $105 million in developments across South and West Auckland

Comparing a Dinghy and Dark Rental Property to a Sunny Home

Why has KiwiBuild Not Been a Success

Government Aid for Private Developers in Housing Provision

Property Industry Boosts New Zealand's Economy

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