With much ado being made over Auckland's heated housing market, Wellington properties have been identified as having the best long term value in the country, according to Bank of New Zealand senior economist Tony Alexander.
"Auckland is due for a plateauing and I expect that a couple of years from now," he said.
"So if you gave me $10 million and said go forth and buy a bunch of houses you reckon will produce the best capital gains in the next five years, where would I look? I'd sink it into Wellington, Hamilton, Tauranga and a tad in Nelson."
"I expect to see a lot of talk soon about the good city life which Wellington offers, the ability to buy a reasonably priced house to raise a family, the fact few head offices are planning to shoot north now, the coming long term benefits of the Transmission Gully Motorway, IT sector, culture, runway lengthening, film sector and so on."
Despite his predictions for an impending plateau, Mr Alexander said he would happily maintain or even add to housing investments in Auckland. "But the easy gains from the repricing of Auckland's housing stock have probably already been made," he said.
Source: Tony Alexander - BNZ Economist