Auckland's not-so-great housing correction
Auckland property investors are facing significant financial losses as the city's housing market undergoes a correction. Experts note a divergence between the struggling Auckland market and the more stable South Island property sector.
Why it matters
The downturn in Auckland's housing market reflects broader economic challenges and shifting trends in urban real estate investment.
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Kerry Buttler and Reece McVinnie followed all the rules when they invested in two Auckland micro apartments in 2018.
They went to property investor talks, engaged an expert agent and carefully weighed up the costs versus income.
"We were a little bit late to the game really," says McVinnie. "Really it was because we discovered that we were being a bit lazy with our money. Very good savers and so on, but not actually good investors."
When they recently sold the property after seven months on the market they lost more than seven percent of the price they paid.
They sold into a market at a time where the average asking price had fallen below $1 million for the first time in six years.
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