Analysts Highlight Affordable Suburbs and Growth Corridors for NZ First-Home Buyers in 2024

Date Published: 18 January 2024

Key Facts

• Affordable suburbs in urban centres like Ōtāhuhu, Pukekohe, New Lynn, Massey, Glendene, and Wainui in Auckland are predicted to attract more first-home buyers, according to Wayne Shum of Valocity.
• The suburb Eden Terrace, set to benefit from the City Rail Link project, is expected to become a desirable hub with an average property value of $800,000.
• Christchurch and Hamilton, due to their lower prices, will still be attractive to first-home buyers who feel priced out of the Auckland market.
• Drury, a developing area in Auckland, is predicted to see significant growth in infrastructure and population, becoming as big as Manukau, according to James Wilson of Quotable Value.
• Hamilton and the wider Waikato region are identified as promising areas due to expected growth and new developments.
• Tauranga’s coastal suburb, Papamoa, is also recommended as an ideal location for those buying for lifestyle reasons.

Article Summary

The affordability of certain suburbs in main urban centres is predicted to drive first-home buyers’ choices in 2024. According to Wayne Shum from OneRoof’s data partner, Valocity, areas in Auckland including Ōtāhuhu, Pukekohe, New Lynn, Massey, Glendene, and Wainui offer properties in the $800,000 to $900,000 price range and good commuter links. Eden Terrace, between the CBD and Mount Eden, is tipped to become a desirable hub due to the City Rail Link project, which will reduce commute times.

James Wilson from Quotable Value points to Drury in Auckland as a future hotspot due to the significant development planned over the next 10 years, turning it into a hub of commercial and residential growth. Areas such as Drury, Clevedon and Papakura all have new developments expected in the pipeline. These locations, currently undergoing major transformations, will offer new types of housing and as these develop, amenities like new services, shops and schools will emerge.

Wilson also mentions Hamilton and the wider Waikato region as growth areas due to new builds and the establishment of motorways and transport links that have opened up additional land on the outskirts for development. The city of Warkworth has seen a mindset shift among people who now consider it an accessible place to work and live thanks to the new motorway.

Another top pick for buyers, but this time for personal love of the location rather than financial gains, is Tauranga’s coastal suburb, Papamoa. Harcourts national auction manager, Shane Cortese, suggests it as an ideal place due to its proximity to the beach and local amenities. Purchase decisions should be based on a personal desire to live in a certain place, and not just driven by property prices or potential growth rates.

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