Since producing an in-depth report on this market in 2005 and updating it in August 2007 the property cycle Slump phase has arrived in earnest.

So the question that everyone is asking now is this…

“How will the CBD Apartment market fare throughout the property slump of the next few years.”

Interestingly the CBD Apartment market looks set to prove to be one of the least volatile or vulnerable markets during this property slump in spite of the oversupply of apartments which remains apparent.

Yes that’s right one of the least volatile or vulnerable markets because the values of CBD apartments have already experienced a major correction over the last few years of 50% in some cases (NZ Herald 6th March 2008 )

So what does this mean for CBD apartments? Will values fall from current levels?

Evidence suggests this markets trends are now relatively positive, not that it wont still suffer to some degree whilst the oversupply situation remains. However we expect it to suffer only a limited further downside, in part due to the relevant speed of this markets recent further deterioration. It is most likely this market will suffer less than most other suburbs of Auckland .

Source: Kieran Trass