The Auckland newspaper “The Royal New Zealand Herald”, as it was often referred to by the late Sir Paul Holmes, is constantly reminding us of the growth in values for property. This level of “property hype” has thrust property owners into a real sense of security. This is identified with the consumer spend which has notched up considerably over the past year. It has also driven up house price expectations.
The recent announcement of the proposed $50 million development at Wynyard Quarter is such an example. This will comprise a potential 600 apartments and about 800 carparks, most of which are $1.0 million plus! Can we imagine that level of residential development? Can we conceive that it is a quality development undertaken by a proven residential developer in Willis Bond?
It certainly is difficult to conceive. Can the average resident afford to be here? Will it reach the point where affordability will not be achievable? Interesting questions. In days past when employment was high, spending was just as high. Did we learn that what goes up must come down? Is this a benchmark period for those of us living in Auckland? Many questions and few answers. The reality is however, that the growth in residential development in Auckland is driven by new Auckland entrants and traditional population growth. Whilst this growth will assist sales, there will be a benchmark that will stall sales as affordability cuts in.
The Property Awards & Top Shop Awards
Remaining on property, entries into the Property Industry Awards 2015, run by the Property Council of New Zealand, are currently being judged. The awards dinner is planned for June, when the winners will be announced. This company sponsors the Retail category of the awards. Every entry is visited by the judges. This is a deliberate visit to ensure that all entries are given the opportunity of displaying their wares!
Conversely, we note that Retail NZ, who run the Top Shop awards, have appointed four judges. One judge is the CEO of Retail NZ whilst the others are expert in their respective fields. A bit odd we thought that the CEO is a judge, and further is it the intent to visit every entry? If not then how does each entry have an opportunity to win?
An entrant in a prestigious event is entitled to be given the time to offset the entry effort. Property has got it right, we are not convinced the same applies to the retail sector!