We love Papatoetoe, it has many great features for tenants, and therefore all the things sophisticated investors seek when they’re looking to grow their portfolio. A lot of the suburb’s growth can be attributed to its close proximity to the rapidly growing CBD of the south, Manukau City. Surrounded on each side with secure employment hubs, infrastructure, transport links and strong amenity, Papatoetoe is an incredibly attractive suburb for long term investors and tenants alike. Here’s why Papatoetoe is growing so fast, and why now is the time to act.
Capital growth in Papatoetoe
Rental Appraisal From
Papatoetoe is one of 17 Auckland neighbourhoods undergoing significant regeneration as part of the 20 year Urban Regeneration Plan by the Council-owned entity Panuku Development. The plans include an increase in residential property to meet market demands; a revitalisation of the suburb’s retail hubs and enhancement of connectivity through the suburb and with its neighbouring centres.
Investment from organisations such as Panuku Development is a strong indicator of Papatoetoe’s forecasted growth, not only in population but in property values as well.
When it comes to buying off the plan, it pays to look at the track record of the developer and other developments in the area. As for the Du Val Group, not only have we already completed a 54-unit studio apartment development St George Street Studio Apartments, we have retained ownership of this project under our ACA Portfolio.
The St George Street studio apartments has a vacancy rate of 0.5% per annum, a strong testament to the continued tenant demand within the area.
Residents of Papatoetoe enjoy easy access to parks and outdoor facilities that allow them to enjoy staying active and being part of a community. From young families and teens to professionals and the elderly - there’s something to do for everyone.
Papatoetoe boasts multiple ways to get around. Walk through the suburb on foot, catch multiple buses in all directions or hop on the train and reach the Manukau Transport Station in only 5 minutes. State Highways 1 and 20 are only minutes from Rātā Terraces and connect you to all corners of Auckland City.
With strong Maori, English, Pacific, Asian and Indian influences, Papatoetoe is a suburb rich in culture and diversity. Everywhere you look, the suburbs heritage and diversity is evident through its art, people, cuisine and businesses.
One of the main drawcards of Papatoetoe is its proximity to the employment, retail, education and commercial hub of Manukau City. Situated less than 3 kilometres from Rata Terraces, Manukau City is also undergoing a significant regeneration plan which has seen phenomenal levels of local government investment in areas such as tertiary education and trades training, transport hubs, business and innovation hubs and retail.
According to a report by Colliers International, Manukau City ranks first in the places to invest in residential property in 2020. We certainly agree and for home buyers and investors seeking the same benefits with a lower capital base, Rata Terraces is the place to look.
Papatoetoe is home to twelve schools, including two secondary schools Aorere College to its west and Papatoetoe High School to the east. One of the great things about being a student in Papatoetoe is that when you finish high school there are a plethora of tertiary options to choose from, just a couple of kilometres down the road. No matter what skill you’re pursuing, it can be obtained just down the road in Manukau.
What does this mean for investors in Rata Terraces?
Young people are able to stay in Papatoetoe for longer, and often do!
The average house price for a 3 bedroom home in Papatoetoe remains at $730,000 (March, 2020) significantly below the Auckland average. As long term population growth continues and South Auckland sees more and more state investment in infrastructure, these numbers will only continue to climb. Papatoetoe is one of the few suburbs in Auckland that features such close proximity to the key drivers of property growth, but is still (for now) considered affordable.
For more reasons to invest in Papatoetoe, download your Rata Terraces brochure today. Alternatively to speak to a Du Val Property Advisor, follow the contact button in the top right corner of this page.