Mangere Property Market

An economic analysis of the Mangere Property Market


Ed McKnight

Economist, property investor and host of the Property Academy Podcast

Go to any property investment seminar, and they will tell you to invest in properties that have infrastructure being built on the ground around them. Of all the suburbs in the Auckland property market, Mangere has some of the most significant infrastructure investment that has just been completed and is still occurring.

The Median Mangere Property House Price Increased By 8.08% Each Year – The Same As Epsom.

Between Jan 2000 and Aug 2018 (the period for which we have data), the median house price in Mangere increased at 8.08% year on year. Over those 18 years, the median Mangere homeowner earned $515,000 of capital gain, a 426% increase. This means that Mangere provides the same capital growth provided by more expensive suburbs, but at a more affordable entry price.

Auckland International Airport Is Investing $1.8 Billion Between 2018 - 2022.

The number of passengers coming through Auckland International Airport (AIA) has increased faster than expected. AIA has responded by investing heavily in new infrastructure. The company is currently investing $1 million a day to upgrade its current facilities. Improvements include a second runway, a new hotel, upgraded international facilities and a new domestic jet terminal. This means additional jobs, both within the airport, surrounding tourism-based businesses, and the industrial parks that surround AIA.

Mangere Is The Only Suburb That Is Directly Adjacent To Auckland Airport.

AIA is surrounded by water on three sides. Mangere runs the full stretch of the fourth side. It is the closest suburb to the airport and the industrial park that surrounds it. This suggests that Mangere will receive significant benefit from the infrastructure currently being developed. This is good for property investors as we would expect there to be increasing demands for rentals in this area.

Mangere Is Has A Direct Line To Auckland Central Through The New Waterview Tunnel.

It takes 21 minutes to drive from Mangere to the Sky Tower without traffic. This is the same time it takes from St Heliers to the same destination. Although Mangere is further away, its close proximity to the North-Western Motorway and the Waterview Tunnel makes it a good option for commuters.

Mangere Is An Affordable Option For Investors – The Median House Price Is Just $672,100 (Aug 2018)

The median Auckland house price is currently $848,000. Mangere’s relatively low ‘entry price’ makes it an affordable option for investors, especially those who have not benefitted from Auckland’s enormous increase in house prices. This means investors can still gain exposure to the Auckland market at a relatively affordable price.

Auckland Council Has So Much Debt, It Can’t Afford To Build New Infrastructure

Auckland Council has a self-imposed debt ceiling of 275% of annual rates. They are currently nearing 270%. This means there is little room for the Auckland Council to borrow to fund new infrastructure. This limits green fields developments and constrains supply. The majority of the new houses for the additional 550,000 people will need to be within the city’s current limits.

My Key Takeaway & Recommendation

Mangere might not be the suburb that most investor would choose to live in today. But, it is the suburb we’ll choose to live in, given 10-20 years. The proximity to the airport and motorways is 2nd to none – and we see this reflected in the capital gains achieved by homeowners in the area.

Other Suburbs to Pay Attention to

If you're considering other suburbs in the Auckland property market, you might also want to look into the Mt Wellington property market and the Te Atatu South property market.


Ed McKnight

Ed McKnight is the host of the Property Academy Podcast – NZ's #1 business podcast. He is an economist, having studied at the University of Auckland and the University of Waikato. He's a frequent writer for Informed Investor Magazine and has contributed to NewsHub, Stuff, OneRoof and Property Investor Magazine.