Dunn targets buyer’s agency model
AUCKLAND PROPERTY figure Martin Dunn has launched a new service to help people capitalise on the Auckland housing market, with strong views about which locations are best.
City Sales Investment will act as a buyer’s agent for prospective landlords and owners.
Dunn, who heads specialist apartment agency City Sales, issued a prospectus earlier this year for another investment vehicle, Dunn Housing Fund No 1.
Marketing manager Scott Dunn said the earlier fund, which sought to raise $7.5m to buy and hold 10 Auckland properties for at least 11 years, had received good interest. But it was put on hold in favour of a vehicle with a simpler structure.
‘‘The cost of compliance was becoming quite astronomical,’’ he said.
Martin Dunn said he did not expect everyone would be happy with the new company, as it would take a strong view on ‘‘what to steer clear of’’’.
He had already identified several suburbs of Auckland he would not recommend, including Panmure and Glenn Innes, which had a large stock of houses which were similar.
He was also steering clear of Albany and Flat Bush, rural areas where price pressure was low because there was plenty of land.
Dunn was also avoiding certain types of homes, including plaster homes, whether or not they were ‘’certified sound’’.
However, he was interested in areas of south and west Auckland, including Mangere, and Te Atatu, which had views and was close to new rail links.
His targets were standalone houses and units, particularly on the North Shore, because they offered a higher return for lower capital gain.
Dunn’s advice to any investor in Auckland’s property market was to note the city’s geographical limits, which made central land increasingly soughtafter, and immigration numbers.
‘‘The [Auckland] Council told us in 2012 that Auckland needs at least another 400,000 dwellings within the next 30 years – we don’t even have the tradespeople to rebuild Christchurch.
‘‘Add to that the Auckland Council chief economist told us last year that Auckland is adding a person to its population every 19 minutes.’’
Another influence was the rapid changes to Auckland’s suburban infrastructure.
The western rail corridor, now two tracks, was becoming electrified, new ferry services now connected parts of the North Shore to the CBD, and that once-sleepy suburbs like Point Chevalier were being rejuvenated.