Avondale: Out of the time warp
Avondale is a 15-minute off-peak drive to Auckland’s CBD. But unlike neighbouring city fringe suburbs, it has not made the same gains in the housing market. Could a regeneration project help it become part of the million-dollar club? Kendall Hutt reports.
Traditionally home to the working and middle class, Avondale is a cultural melting pot and gateway to West Auckland. There are the dollar stores and payday moneylenders in the town centre, and a mecca of ethnic food outlets – Cambodian, Chinese, Pasifika – and hair salons and barbershops. It has charm, as one local restaurateur puts it.
It is also home to graffiti and street art. One mural is a tribute to Naeem Rashid, who died trying to tackle the shooter in the Christchurch mosque attacks.
A giant spider sculpture – an Australian huntsman aka the Avondale spider, which has become part of the suburb’s identity – watches over the town square. His name is Dale and he even has his own Facebook page.
Despite its character, real estate experts say price growth in Avondale has been slower than expected compared to that of surrounding suburbs.
Locals believe this is down to a lack of past investment by city politicians, others point to better housing, schools, amenities and transport options in nearby suburbs.
But with the West Auckland suburb set to undergo redevelopment over the next 15 years, those real estate commentators also say Avondale is one to watch.
Craig Smith, Barfoot & Thompson’s New Lynn branch manager, says Avondale has been identified as the next area for a growth spurt. ‘‘Its central location is perfect and you have public transport, it’s close to the motorway and there are good schools.’’
He reckons that over the coming years Avondale will be the last city fringe with the potential to reach the average $1 million price.
Houses have already been selling for more than $1m. Out of 19 sales over December/January in 2018/2019, four sold above $1m and in November 2019, eight houses out of 25 sales sold for more than $1m.
But Smith does not believe a rise in house prices will make Avondale unaffordable.
‘‘People will still be able to afford properties like units. That’s how they get in,’’ he says. ‘‘Property developers are getting in with terraced housing and making it affordable for people to come in.’’
Avondale also has a lot of good rentals, Smith says, and the demand is there.
‘‘It has one of the highest gross yields according to other areas – what we get from a rental return for the price that we pay.’’
The suburb has 1100 rental properties, which do not include Ka¯ inga Ora’s, he says.
In its latest release, QV said areas such as the Te Atatu¯ Peninsula, New Lynn and Avondale are ‘‘very popular with strong demand noted’’.
Kelvin Davidson, CoreLogic’s senior property economist, says the median value in Avondale rose 30 per cent (or $191,700) in the past five years to $834,700.
Nearby Mt Albert had performed ‘‘more strongly’’ though, the median value up by 38 per cent (or $310,300) to $1,118,75.
However, given Avondale’s growth and the fact it needs only a 20 per cent increase to hit $1m, Davidson thinks it is not too much of a punt to suggest it could be at the mark by the end of this decade – maybe even earlier.
Trade Me’s head of property, Nigel Jeffries, is in the ‘‘even earlier’’ camp and predicts the average asking price will surpass $1m in the next 12 to 24 months.
It is not only real estate experts who believe Avondale will become a member of the milliondollar club. Restaurateur Aaron Carson thinks it is ‘‘inevitable’’. The co-owner of local Italian restaurant Barbarino’s Spaghetteria says it is because the suburb is so close to the city, has ‘‘great’’ properties and a ‘‘thriving’’ community.
‘‘Avondale has a great art community and a lot of people – students, first-home buyers, young people with children – which adds up to an incredibly exciting dynamic and incredible potential.’’
The former Avondale resident has always felt it was going to be people taking a chance on the suburb to transform it from its ‘‘in between’’ and ‘‘waiting for stuff to happen’’ status.
‘‘Business owners and the council are now taking a punt on Avondale which I think will pay off.’’
Over the next 15 years, Auckland Council’s development arm, Panuku, plans to ‘‘enliven’’ the town centre; strengthen connections through work at the train station and cycleways; foster the growth of local businesses, which includes attracting new ones and offering more products and services; and create high-quality residential neighbourhoods including affordable housing.
Avondale will be home to one of Ka¯ inga Ora’s biggest developments, with more than 100 state houses planned.
The regeneration plan for Avondale also includes a new $21m centralised, multi-purpose community facility which will include a library and community centre and ‘‘positive outcomes’’, and protection is being sought for the 130-year-old Avondale Racecourse, home to a popular Sunday market.
Carson feels Auckland Council invested heavily elsewhere before which, combined with the previous business association’s ‘‘stranglehold’’ on the suburb, had a negative effect.
‘‘Previously [the business association] has been a big component in the stagnation of the main street. It was really quite appalling. The main street has charm, but it is certainly not appealing if you’re trying to drive through it.’’
Under previous chairman Duncan MacDonald’s leadership, Avondale’s town centre had been described as Third World.
But Carson says there’s been a ‘‘sea change’’ since the arrival of a new business association chair, Cain Tattoo co-founder Marcus Amosa.
‘‘Avondale now has amazing potential and a great vibe. It’s only a matter of time before it springs to life and not in a gentrification way, but a development, progression kind of way,’’ Carson says.
Local MP Deborah Russell also thinks Avondale
‘‘Avondale now has amazing potential and a great vibe. It’s only a matter of time before it springs to life and not in a gentrification way, but a development, progression kind of way.’’ Restaurateur Aaron Carson