West Auckland's Avondale is not in the million dollar club, but it will be - soon

Thursday, 5 March 2020

Avondale is a 15-minute off-peak drive to Auckland's CBD. But unlike neighbouring city fringe suburbs, it has not made the same gains in the housing market. Could a regeneration project help it become part of the million dollar club? Kendall Hutt reports.

Traditionally home to the working and middle class, Avondale is a cultural melting pot and gateway to West Auckland.

There are the dollar stores and payday moneylenders in the town centre, a mecca of ethnic food outlets — Cambodian, Chinese, Pasifika — and hair salons and barbershops. It has charm, as one local restaurateur puts it.

It is also home to graffiti and street art, which adorns buildings and walls. One mural is a tribute to Naeem Rashid, who died trying to tackle the shooter in the Christchurch mosque attacks.

* Avondale voices sought to help transform the tired Auckland suburb

* Residents fear intensive housing will steal away Avondale's green space**

The Australian huntsman spider, also known as the Avondale spider, has become part of the suburb's identity.

Now in his 90s, Tommy has lived in Avondale since 1972, and doesn't care if house prices go up or down.

A giant spider sculpture watches over the town square. His name is Dale and he even has his own Facebook page.

Despite its character, real estate experts say price growth in Avondale has been slower than expected compared to its surrounding suburbs.

Locals believe this is down to a lack of past investment by city politicians, but those in real estate feel surrounding suburbs currently have more on offer.

'It is probably a mix of housing type, schools, amenities, quality of housing stock and transport options in the area relative to other suburbs nearby,' Trade Me's head of property, Nigel Jeffries, says.

Bindi Norwell, chief executive of the Real Estate Institute of New Zealand (REINZ), says Mt Albert has higher median prices than Avondale.

'[This] is likely influenced by the significant investment in infrastructure and road layout, easier access to motorways and city centre, as well as being in a 'better' school zone.'

But with the West Auckland suburb set to undergo redevelopment over the next 15 years, real estate experts also say Avondale is one to watch.

Avondale has its fair share of inexpensive housing.

A SUBURB TO WATCH

Craig Smith, Barfoot and Thompson's New Lynn branch manager, says Avondale has been identified as the next area to go through a growth spurt.

'Its central location is perfect and you have public transport, it's close to the motorway and there are good schools.'

New apartment blocks are taking hold in Avondale.

He reckons Avondale will be the last city fringe to get the potential of $1 million makers, average-wise, over the coming years.

Houses have already been selling for more than $1 million. Out of 19 sales over December/January in 2018/2019, four sold above $1 million.

In November 2019, eight houses sold for more than $1 million out of 25 sales.

Fruiterer Gary Singh. Pink Taro and Bananas are the big sellers at his store.

Smith does not believe a rise in house prices will make Avondale unaffordable, as 'it's got a price bracket for everyone'.

'People will still be able to afford properties like units. That's how they get in,' he says.

'Property developers are getting in with terraced housing and making it affordable for people to come in.'

Avondale town centre, a study in faded glory.

Avondale also has a lot of good rentals, Smith says, and the demand is there.

'It has one of the highest gross yields according to other areas — what we get from a rental return for the price that we pay.'

The suburb has 1100 rental properties, which does not include Kāinga Ora's, he says.

Avondale Race Course is home to Avondale's popular Sunday market.

In its latest release, QV said areas such as the Te Atatū Peninsula, New Lynn and Avondale are 'very popular with strong demand noted'.

Kelvin Davidson, CoreLogic's senior property economist, says the median value in Avondale had risen 30 per cent or $191,700 in the last five years to $834,700.

Nearby Mt Albert had performed 'more strongly' though, the median value up by 38 per cent or $310,300. Its median value is $1,118,75.

Avondale Race Course was once a rival to Ellerslie Race Course. Now it is also a study in faded glory.

However, given Avondale's growth and the fact it only needs a 20 per cent increase to hit $1 million, Davidson thinks it is not too much of a punt to suggest it could be at the mark by the end of this decade — maybe even earlier.

Jeffries is in the 'even earlier' camp. Trade Me predicts the average asking price will surpass $1 million in the next 12 to 24 months, based on the current rate of price growth in the area.

It is not only real estate experts who believe Avondale will become a member of the million dollar club.

Dale, the giant Avondale spider sculpture.

WAVE OF GENTRIFICATION

Restaurateur Aaron Carson thinks it is 'inevitable at some point'.

The co-owner of local Italian restaurant Barbarino's Spaghetteria says it is because the suburb is so close to the city, has 'great' properties and a 'thriving' community.

The Hollywood Cinema is a popular venue in Avondale.

'Avondale has a great art community and a lot of people — students, first home buyers, young people with children — which adds up to an incredibly exciting dynamic and incredible potential.'

The former Avondale resident has always felt it was going to be people taking a chance on the suburb to transform it from its 'in between' and 'waiting for stuff to happen' status.

'Business owners and the council are now taking a punt on Avondale which I think will pay off.'

Avondale house prices have failed to keep up with their neighbouring suburbs.

Over the next 15 years, Auckland Council's development arm Panuku plans to regenerate Avondale.

It will 'enliven' the town centre, strengthen connections with it through work at the train station and cycleways, foster the growth of local businesses, which includes attracting new ones and offering more products and services, and create high-quality residential neighbourhoods, which includes affordable housing.

Avondale will be home to one of Kāinga Ora's biggest developments, with more than 100 state houses planned.

Anne Isaia shares breakfast with her son, Oliver.

The regeneration plan for Avondale also includes a new $21 million centralised, multi-purpose community facility which will include a library and community centre.

Home to the suburb's popular Sunday market, 'positive outcomes' and protection is being sought for the 130-year-old Avondale Racecourse.

Carson feels Auckland Council invested heavily in other areas of the region before and combined with the previous business association's 'stranglehold' on the suburb, it had a negative effect on its development.

A mother enjoying a smoke outside of her rented home. A new apartment block has been approved for the land her unit is on. She'll shift to Hamilton where the rents are cheaper.

'Previously it [the business association] has been a big component in the stagnation of the main street. It was really quite appalling.

'The main street has charm, but it is certainly not appealing if you're trying to drive through it.'

Carson says the main street was starting to be addressed with the 'sea change' brought in by the new business association chair.

Now chaired by Cain Tattoo co-founder Marcus Amosa, the Avondale Business Association had previously been led by Duncan MacDonald since 1999.

It was under MacDonald's leadership Avondale's town centre had been described as 'Third World', the main street apparently a derelict strip dominated by money lenders, for lease signs and dollar stores.

MacDonald, also a member of the Whau Local Board, resigned last year after he was censured over claims he falsely accused a business owner of criminal activity and yelled threats at a member of the public.

'Avondale now has amazing potential and a great vibe. It's only a matter of time before it springs to life and not in a gentrification way, but a development, progression kind of way,' Carson says.

Local MP Deborah Russell also thinks Avondale is on the up.

'There's some good work being done here, and Auckland Council has committed money to redeveloping Avondale. The new chair and board of the Avondale Business Association are energetic and have some great plans.'

With Avondale's redevelopment, Russell hopes to see an ongoing mix of housing in the suburb, as it is traditionally where people on lower incomes have been able to afford homes.

'I don't want to see lower income people driven out because it's their home.'

Cafés and eateries are beginning to pop up around Avondale, with Browne St drawing in the latte set.

With her office on the main street, Russell also wants to see its 'lovely community feel' retained, along with seeing an ongoing mix of diversity.

'It would be a real shame to lose that. I don't want to see it solely gentrified.'

Amosa himself says he wants to 'bring back the positive' to the town centre.

'My whole role is to encourage business development, putting out a positive vibe to consumers and business investors.

'It's about taking Avondale in a new direction, showing the positive parts of the town centre.'

I LOVE AVONDALE

Like Carson, Amosa feels the suburb had been overlooked on the investment front.

He believes Avondale did not have good representation on the council before, 'enough advocates speaking out on our behalf.'

'Now we have more advocates speaking on our behalf, like my brother Fasitua, the new local board chair Kay Thomas, and new Auckland councillor Tracey Mulholland.'

Amosa is proud of his role in being part of the change in Avondale, the community he feels a sense of belonging to.

Like Amosa, Dayne Smith is passionate about his community. The 37-year-old is a community development worker behind the I Love Avondale project.

It started out in 2014 as a personal project aimed at showing love for the suburb's people, stories, places and history.

In the last three years, it has become a broader, funded community development project 'showing and growing the good in the hood' online and on the ground.

For Smith, Avondale is a 'cultural melting pot', traditionally home to the working and middle class. It is a suburb where you can 'wear what you want, be what you want, without judgement'.

'It's always been a place where people from all walks of life can afford to live. I'm talking diversity, not just in terms of culture but age, employment, class,' he says.

'I don't want to see that change because people can't afford to live here.'

The fact Avondale is not a member of Auckland's million dollar club does not 'erk' Smith, as he does not see its success and desirability in terms of house prices.

He does not want to see its diversity 'become more difficult' as house prices rise.

With a 'wave of gentrification' finally hitting Avondale, it is an opportunity for its existing people to 'ride that wave and increased investment in our suburb.'

Smith says gentrification is arriving in the form of cafés and eateries, such as Browne St and Barbarino's. More creative-oriented businesses had joined the dollar stores and moneylenders in the town centre, including barbershops, tattoo parlours and Pacific 'pop up' stores.

He says the biggest change in Avondale's town centre has been in its leadership, with the business association 'more collaborative and progressive in its thinking'.

'The change in leadership, together with all of the amazing things our people are already doing, things are looking brighter,' Smith says.