Property boom looms for 2010
As Team New Zealand sailed to victory in the Louis Vuitton Cup, increasing the likelihood of the Americas Cup being held in Auckland in 2010, property experts are predicting this will be a factor triggering “the boom of all booms” to hit.
Thursday, June 7th 2007, 11:30AM
by The Landlord
By Andrea MilnerHigh profile property investor Sean Wood – who amassed a $10 million portfolio of 35 properties in three years – is advising property investors to accumulate a substantial “hold” portfolio before 2010, in time for the next big boom period that he predicts will run from 2010-2014.
“2010 will see the boom of all booms hit so investors must get as much as they can before then so they can buy capital growth properties at that time,” Wood said at a property information evening yesterday.
He predicts some Auckland property will see 40% growth in a 12-month period.
If the Americas Cup returns to New Zealand in 2010, Wood says this will boost the Auckland apartment market. And while the fate of the Cup may not yet be certain, two other major sports events are confirmed to take place in New Zealand in 2010: the Rugby World Cup and the World Rowing Championships.
As well, Wood subscribes to the school of thought that the retirement of the first wave of baby boomers by this time will have a big impact on the property market, because he says they will need to be replaced in the workforce by immigrants.
He says this immigration will come mainly from Asia, comprising people who are used to apartment dwelling.
Ron Hoy Fong is another successful property investor who believes a coming boom time can be predicted on this factor. He told a recent Auckland Property Investors’ Association seminar that while the current market is “flat”, the retirement of a million baby boomers will trigger the next property boom beginning in 2010, and also that rents will “catch up” over the next five years.
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