CRL contract likely to boost interest in Eden Terrace
Construction progresses on the CRL.
The newly signed City Rail Link contract is likely to fuel further interest in the fast-gentrifying area around the Mt Eden train station, say Colliers International experts.
A consortium of local and international companies known as the Link Alliance was recently awarded the contract to build the stations and tunnels of the 3.45km twin-tunnel underground railway.
This work will include a new station at Mt Eden, where the tunnels will meet the existing western railway line.
Chris Farhi, Strategic Advisory Director at Colliers International, says he expects an upswing in investor and developer interest in the area.
“The CRL is a rapidly moving beast, and the Link Alliance contract is likely to boost confidence in its transformational potential.
“The new rail link will dramatically reduce travel times from Mt Eden station, putting it within only nine minutes of Britomart, six minutes of the new Aotea station and three minutes of the new Karangahape station.
“This will increase the appeal of high-density living located within a short walking distance of the Mt Eden station.
“We’ve seen land price growth around major transport hubs in other cities across the world, and that’s likely to happen in Auckland too.
“The Mt Eden and Eden Terrace areas are definitely the ones to watch in this regard.”
Jonathan Lynch, an Associate Director of Colliers International’s Investment Sales team, who specialises in Auckland’s western fringe suburbs, says land prices are already rising in the area.
“Eden Terrace properties that were selling for circa $3,000 per square metre in recent years are now changing hands for $4,000 or even upwards toward $4,250 per square metre in special circumstances.
“There’s still room for further price growth as the CRL progresses, so investors looking closely at the area will want to act.”
Lynch says the suburb has some of the lowest density, relative to the city centre, of any of the city fringe areas.
“The problem for developers is that many of these sites are quite small and fragmented. We expect to see some consolidation in coming years as the CRL nears its 2024 completion date.”
Colliers Investment Sales Broker Hamish Paterson, who also specialises in Auckland’s western fringe suburbs, says infrastructure is vital to growth.
“I’ve lived and worked in Tokyo and Sydney, and I’ve seen how enormous investment in infrastructure has shaped those cities.
“In Auckland, we’re about to get a firsthand taste of infrastructure-led growth – and suburbs like Eden Terrace will be the key beneficiaries.”
Paterson says Eden Terrace has already been gentrifying fast.
“In recent years we’ve seen the development of numerous new high-quality apartments, terraced houses, offices, cafes and bars.
“Hospitality businesses in the area include the renowned Horse and Trap bar and a number of funky new offerings, including the Brothers Beer Juke Joint and the Good Home pub.
“The residential development boom in the area has been of a high quality, typified by the recently completed Botanica, Botanica Heritage and Miro apartments.”
Analyst Adrian Goh of Colliers International’s Research team says the latest apartment project survey shows 13 new developments have been completed in the area since 2012.
“A further three are under construction, one is being marketed off the plans, and two have been recently consented.
“A total of 566 apartments have been delivered in the area, with a further 234 in the pipeline.”
Western city fringe sales specialist Kris Ongley of Colliers’ Investment Sales team says it’s easy to see why the area is so popular. “It is within easy walking distance of Newmarket and Auckland’s top public and private schools, including Auckland Grammar and Epsom Girls Grammar,” he says. “The area really is a great little pocket of urban regeneration.”