![](/sites/default/files/styles/full_width/public/feature_images/Bayleys%20batch-1.JPG?itok=fgo6Fh1c "<p>
Potential coastal property buyers "fully comfortable" with prospect of little capital gain over short to medium-term says Bayleys' Roar Kristoffersen.</p>")
With summer just around the corner and residential real estate sales in the doldrums, Bayleys Real Estate is launching what it labels the biggest auction campaign for coastal property and homes in New Zealand this year.
Bayleys says the big push will involve properties at the top of the South Island. It will hold auctions at Kaiteriteri, which it refers to as the "Riviera of the South Island" on November 21, with a second selection of coastal auctions to be held in Blenheim on November 28.
Both auctions will feature completed homes and bare sections.
The auctions come at a time of weak residential property sales volumes. The most recent Real Estate Institute of New Zealand (REINZ) figures, for September, showed the median national house price flat at NZ$350,000. Sales volumes were 4,323 in September, up from 4,287 in August, but down 33% from 6,464 in September a year ago. This was the lowest September sales figures since the REINZ started collecting the data in 1992.
There's also a major build up of inventory in some parts of the country. Data from realestate.co.nz shows there's 325 weeks of inventory in the Coromandel based on current listings to the average sales rate of the the last three months.
Bayleys says its South Island "seaside bulk lot" residential property auctions follow others over the past 18 months at Maunganui in Northland, Whisper Cove at Snells Beach north of Auckland and Marlborough.
Roar Kristoffersen, from Bayleys' Motueka office, said the majority of those who had shown buying interest in the properties being auctioned were "fully comfortable" with the prospect of little capital gain on the homes over the short to medium term.
“The comments coming through to us are that the holiday homes will be bought purely as that – holiday homes – and not investment units purchased with the intention of making a ‘quick buck’ over a couple of years,” Kristoffersen said.
“This pattern indicates two very strong societal shifts. Firstly, a move back toward family values, where summers at the beach with the children and extended families are once again in vogue. And secondly, that prospective buyers are acutely aware of the wider economy and the effects this is having on future pricing levels for leisure properties," he added.
“Conversely, many of the vendors with properties in these auctions have been taking on board market commentary very closely and, as a result, have indicated they have sensible price expectations.”
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78 Comments
Perhaps some punishment along these lines?! http://www.smh.com.au/world/zimmer-frame-gang-tortures-adviser-who-lost…
Oh dear....
"This was black money; they hadn't declared it to the revenue authorities in Germany," he said.
The world is full of irony when educated professionals in one of the wealthiest countries on earth go to these lengths over their tax evasion scheme gone wrong.
Thanks Gareth, maybe what is needed here.
What makes me so angry to be honest about the what the likes of Allied, Hanover and others did, is that they ripped so many older people who had worked hard to established a nest egg which could have enabled them to enjoy their retirement(as they were advised to do).
Allied actions let Hotchin and Watson off the hook.
Justice needs to happen-not only to gang members.
How we treat our elderly says alot about our health as a society.
A wise man once said "when I was young we went down to the railroad and stole a bit of food here and there, now people go to University and learn how to steal the whole Railroad.
It also disproves the notion that all older people are wise . Many of them are complete dunderheads , alike us younger folk . Else they'd not have blindly entrusted their life savings to advisors and finance companies .
[ RJ : You've forgotten what complete rubbish NZ Railway food was ! ]
OK, so the majority of "potential buyers" are comfortable with the prospect of little capital gain over the short- to medium-term.
Fair enough. These people are are more interested in "family values" after all.
What I want to know is whether or not these people would be comfortable with a capital loss. That would be the first question I would ask myself. But as Bayleys expresses, family values are the order of the day so I guess losing money on property is not a high priority.
Roar Kristoffersen is the coolest name I've hear for a while.
Clearly Bayleys have been unable to flog their coastal listings by other means and so the auction is the last resort for them to catch a sucker. It's not emotional comment colouring judgement Me...it's good honest RE bashing when they deserve it. To suggest these unsold listings are of a Riviera nature...is some serious BS and you know it.....in fact it may well be grounds for offical complaint...to the right authority...don't you agree Me!
We looked at a Nelson house yesterday that was new on the market. The very nice agent told us NOT to put in a quick offer .... she said to wait a while and they will have to drop their asking price due to the very limited number of buyers in the higher price range.
That's nice to see RE agents being realistic and helping purchasers for a change.
Also according to the local valuation company the number of properties being advertised with "Price Reduced" is triple the number compared to the same time last year.
http://www.valuersnelson.co.nz/property-news/newsletter.php?date=2010-11-01
Old listings at new prices
More Nelson Tasman properties are being advertised with new or reduced prices. The Summit and Property Weekly magazines published yesterday featured price changes on 40 properties compared with just 16 in the same week last year. The number of listings also appears to have increased as the Summit weekly published in the final week of October last year had 28 pages compared to 32 yesterday while the Property Weekly has grown from 64 pages last year to 80 yesterday.
The owner of this property could report the agent to the RAA for doing this. It is the vendor that pays the commission and its the agents job to get an offer of the highest amount they can. It is not up to the agent to refuse a quick offer! The agent should be capable of turning the quick offer into a serious offer!
I always thought it was pretty normal for Real Estate agents to try and sell at whatever price they can get - bird in the hand, two in the bush, etc.
As a REA you're better off selling more properties and losing, say, 10% of commision fees, than sitting on a place that won't sell and getting nothing. It's pretty immoral - but that's business in NZ.
News: Whitcoulls launching a new book in December 2010 ready for Christmas :
"The Summit of Weekly Property" - monthly - 80 to a 100 pages, full colour, comprehensive discription of stunning pictures of NZ scenery for only $ 22.50 - 15% GST incl.
..ideal Christmas present for a number of people with too much money - international banker's, lawyers, and former finance CEO's - etc.
Yeah - why not - another way to make money for the rather poor Real Estate industry.
GLOSSARY:
Vendors change of direction is your opportunity = owners trying to avoid bankrupcy
Owners already have a new project = owners trying to avoid bankrupcy
This property must be sold! = owners trying to avoid bankrupcy
Owner wants sold ASAP = owners trying to avoid bankrupcy
Mortgagee sale = Bugger ... owner bankrupt
I have two close friends who are currently desperate to offload coastal property, both are subdivisions. They are motivated sellers but have had absolutely no interest in the last 6 months. No one is even looking its as dead as a dead horse. The bank is right up the backside of these guy's and they need to sell fast, they believe prices are going to collapse.
I understand what Bayleys are saying, they're not talking to the speculators, (who just stuff up coastal areas anyway with their credit freak fetishes and noisy bloody jet skis.)
I live in a house over the sea, and have a holiday house over the sea also. I love them. No matter which I'm in, I watch the news at six with a wine in hand, and an eye to the sea, the bush, the pleasure, fishing and working fleets going about their lives on the water. It's a fantastic lifestyle, tranquil, which I always hope to be able to afford (knowing there are never any guarantees, so enjoy what you have while you can).
Both houses were purchased for the very long term; such a long term, the price paid for the right places was almost unimportant (I would have paid more for each of them). If you're into the lifestyle, and have cash at the moment, then now may certainly be a good time to buy.
The trouble is, if you're living in a box in the suburbs, which I used to, then it's sometimes hard to see the sea and the lifestyle improvement for all the fences and pollution. But I live in my houses for something like 90% of my life: just like a good bed every single night, why would you want to deny living such a major portion of your life in a place that adds to your life? It's one of the few good uses of money: enjoying my life.
[We've actually had our permanent house on the market at one stage, thinking to move to the holiday house or an inner city apartment (see below): but I couldn't stand the thought ultimately of losing it, I've never been sure which I would prefer to retire, so we've taken it off and will hold it for at least another ten or so years.]
[As I've now mentioned it, one other lifestyle I've often thought would compliment this nicely, is that other part of the market frowned on by the suburban box livers, namely, a nice inner city apartment close to theatres and restaurants. That option would be great, and we've often thought about it, unfortunately thanks to the welfare state inner city Chch is too violent for this now. Of course nothing I have written on above has much to do with 'investment'. It's more important: living. So I don't think it's Bayleys that's stupid, it's living in a box looking at a fence and a road: why would you choose that?
Go on, every poster above knows they want to: go buy yourselves a better life.]
Oh sorry Nicholas did I say family wasn't important; hang on ... nope, I didn't say that.
I must have said friends weren't important. No, no. I didn't say that.
Culture and art ... nope, never said that wasn't important. The inner life.
I thihk all I said was that my life is enhanced greatly by the great places I live.
I think you'll find that the 'current problem' is people have become so far removed from responsibility for their own lives, so brainwashed by the state educators, that they no longer realise the high standard of living we have in the West is solely due to our relative freedoms and capitalism. And the further we travel from capitalism, the worse our lives have always become.
Here's a funny thing: of all the Libertarians I know, not one of them is 'into money'. Equating money with 'no soul' is so trite and shallow: which is also part of the problem. As Lindsay Perigo would say: the current problem is our airhead culture - Lawless, Malcolm, Castle-Hughes, that lot and the doomsayers and life hating Nanny Statists that post here.
Now you go live with a port a loo and no plumbing for a month and see if your life is any better.
I am not sure whether anyone has picked up on this data for regional best and worst from the peak which QV have put out (I hadn't seen it before):
http://www.qv.co.nz/propertyinformation/KnowledgeCentre/bestandworstper…
I see Coromandel figures noteably there in the worst.
But of course, Gore (the stand-out provincial performer) would have had its dairy 'boom' ponzi funded by SCF/Hubbard. So one wonders just how much of that result might slide back now as a result of the collapse of that institution.
The NBR "sidelines" column did a recent column highlighting the best-of-the-best ponzi transactions in that fiasco. Truely amazing such carry on actually carried on!
God the doomsayers on here are atrocious.
I don't subscribe to the 'cheap energy is gone' argument, at all, but lets say you're right, then sitting by the sea, with my kayak for pleasurable exercise, dinghy for fishing (and mussels and oysters growing on 'my' beach in the Sounds, seems like a pretty good way to deal with such an issue.)
Although there is no issue, of course.
LOL no issue, of course not - mysteriously 'the market' is going to magic a new energy source for us in the next 5 years.
Still Mark I feel we are making progress with you - that middle sentence of yours almost feels as though there is some rationalisation going on (which is a start). You are hinting that of course NZ will be the best of places to live in such a situation, and in this you are entirely correct. Given that now lets go about protecting and enhancing NZ's position in such a future shall we?
It's O.K to be shooting your own version of the movie " On golden ponds " there, Tribeless, but this site is a contrarian -driven concept in essence so you can't say those that wish to drill down into the debate are negative doomsayers just "cos they don't want to discuss kayaking and holiday homes with you?
So lets see oil is at $87USD......that is over three times the mean average of $27....$27 was cheap.......at $87 is close to sending the world's economies back into a recession....(6% of GDP spent on energy input to an economy sinals recession....)
Premis 1) the entire economic system is built on and needs cheap energy to work....2) Half the oil is gone, that was the easy and cheap half.....3) Supply and demand that so loved my free marketeers dictates that the price is the price. 4) there is no alternative.....
You get to sit and watch yourself be wrong....
regards
A resonse to Me, yes some emotional comment here but don't you agree that Marlborough and the Coromandel are over-rated areas, both bit of a backwater,so prices have got too high for such areas. Wolly is probably right when he says prices are collapsing in Marlborough, there's probably a net migration loss there, sell out now if you can.
yes some emotional comment here but don't you agree that Marlborough and the Coromandel are over-rated areas, both bit of a backwater,so prices have got too high for such areas
Mmm, let's see:
Pristine, unpolluted water and beaches and sheltered Sounds.
Good fishing.
Oysters and mussels on the beach.
Scollops.
Good boating, kayaking, et al.
Great bush and wildlife. We're in the Mahau, so get pods of dolphins three or four times a year. More birdlife than I can name, and they seem friendly, also in the bush right up close to the house.
Great walks.
Rest, relaxation.
When we're there, two or three meals a week at Marlborough's wide rage of winery restaurants.
Friendly yokels.
Possibly a backwater, whatever that is: I obviously like backwaters.
(I live in Diamond Harbour, and love it there for quite different reasons than the Mahau. But I'd not eat anything pulled out of Lyttelton Harbour, we have worse roads than in Marlborough, despite being part of Christchurch, our rates are over double in DH than in Marlborough for roughly the same value house. For me, Marlborough would be worth a premium, especially if you're paying to get away from the polluted cities and the general thuggery that inhabits them these days. All personal choices, I guess, whatever floats your earthship.)
Here's why I don't own a holiday home any longer. I looked at how often I was there ( back to the same place- hours of travel- again!); how much it cost me to own it, and figured that for the same price ( less the worry of, 'Has anything happend to it"' in the interim) I could spend a few grand a weekend to stay in someone elses place, instead. But that's just me. Others, like Mark I am sure, do like whatever they have. Each to their own, as he rightly says.....
Now that's one point we agree on Nicholas. We currently spend up to three months a year in Marlborough, and by mid next year we aim to move that up to about six months of the year - I'm lucky I can work for long periods away so long as I have email and Internet.
A holiday house for a couple of weeks is a waste of time. At those times in our lives when we couldn't get away for material time periods, we did as you said (and preferred it): pay a bit of money and go stay somewhere nice, and different (because diifference is great too) each time.
that's my sentiments also...no mowing of overgrown lawns or spending a whole weekend doing chores after driving hours to reach your coastal " dream" home!
far better to spend a week in someone else's dream..and there's plenty of getaway amazing places available...and pay the tariff, a few times a year..
My concern is: The 2 major NZindustries (Agriculture/ tourism) are currently operating on risky ground in correlation to international and climate events. The fact is we import most everything and therefore the economy need to be stimulated in order to reduce our account deficit and this happen once again sadly through Real Estate and property investments.
The pressure/ desire for immigration into NZ of rich people and their money will rapidly increase. Under the scenario discribed above, I’m not sure if our government will ask many questions about rich people coming from all over the world investing their money here in NZ. Exclusive and remote places Marlborough Sounds/ Coromandel costing below 2.5Mio. (see 5/11/10 11:50pm) are ideal retreats for all sorts of people honest ones or/ and banker’s etc. - thousand's of them !
A backwater would be an area in a country where the situation is in serious decline, property prices are simply a reflection of of the situation. The indices for Marlborough, such as the wine industry etc are pretty adverse, it is a region going backwards, likewise Coromandel is in reverse gear also. Where people want to migrate to in significant numbers will be the places that property prices remain more buoyant.
"A backwater would be an area in a country where the situation is in serious decline, property prices are simply a reflection of of the situation."
You're describing just about everywhere outside the main centres, and also many parts of the main centres!
After several years of work, a colleague is completing a study of rural and semi-rural NZ which he'll be publishing next year. His conclusion is that most of the country is rapidly going backwards in most respects, and the decline is likely to decelerate as time goes by.
The indices for Marlborough, such as the wine industry etc are pretty adverse, it is a region going backwards
When the price received for a tonne of grapes halved, it was found many vineyards had over-capitalised and carried too much debt. Those have and will be liquidated, with new owners buying in at prices on which they wil earn an economic return.
How does this affect my, or the publics liking of the product: wine?
Or my desire to spend time around and in winery restaurants?
In other words, why would a winery changing hands and the vendors making a loss because their bank has forced them out, affect the value of coastal holiday properties in Marlborough (remembering there are now some very gret deals on wine)?
Irrespective of the posturing by the "I'm not a real estate agent" posters we all know the coastal market is really really fucked. I own it and I know it, any kind of pretence to the contrary is rubbish and any "we're all in it for the long term" pitch is disingenuous BS because the long term is probably longer term than the lifespans of the boomers (mostly) who can afford it. And while we are on the topic, the boomer who can scavenge and self sustain off the sea and land is one out of the box while the rest are going for hip replacements and lattes with Green Acres doing the lawns.
Sounds a bit despondent Lucky Basket to write off much off the country. I'm sure there are areas outside the main centres that are doing ok. How are people finding things in the likes of Cambridge or Katikati etc. Is there economic decline, are more people leaving than coming in, are house prices crashing? It's just that Marlborough and Coromandel seem to be typical of areas that have been greatly over-rated and now the situation is not shaping up too well.
A big auction in Australia too - http://noir.bloomberg.com/apps/news?pid=20601081&sid=aYWhCB9.WqAs
Property is a very interesting scenario. In my opinion always one of the best long term investments. However many look at our economy (which is important) and then the USA, Aust etc etc. What they also fail to take into consideration is the rapid wealth arising out of China and India. Both of these countries have a lot of their citizens currently buying in NZ as they also see property here as a very good long term investment.( Incidiently so do many ex pats planning to retire in a few years) As previously stated I do not agree with the forecasts of many on this site, in a few years time property values will have certainly increased, in good locations, to the great disappointment of those that decided to wait.
Righto, Gavin. You're a cashed up India or Chinese ( or New Zealander, for that matter!) property buyer. The States property market has come off, I don't know, 20%?, and their currency is deliberately being devalued ~ that's another cheapening of property in the USA. So; Do you buy property there at a fraction of its historical price, or do you buy in a relatively illiquid market like New Zealand that's still overvalued? ( IMF words, not mine, as such) The rich go where the money is to be made, and that's where prices have fallen. After all, the profit's in the buying, isn't it?
Don't know about Cambridge but Katikati is pretty vibrant these days.
Interestingly in the Western Bay of Plenty, if you get a tradesman such as plasterers, carpet layers, they all say they are as busy as and I've noticed quite a few with British accents- obviously a place for immigrants to come to. Not all the country is in the doldrums. Retailing is competitive though.
Nicolas: Yes the profit is in the buying if you want to resell. Personally I wouldn't be buying in the States for some of the reasons you mention. However as money devalues (as it will do globally) property will increase for no other reason than it will require more of a devalued currency to purchase it. After all, I haven't read anywhere that the world is getting larger and therefore availability will remain a factor.
You know what, Gavin? Money isn't going to devalue. Why else would the UK, Ireland, Gernamy...et al, be taking ghe pain of austerity if they could sit back this time and let inflation do the work? Answer: It won't, and they know it. This time we actually have to pay the bills, pay the debts, with real work. That's more effort; less paper, and no capital gain profits ~ and a higher value to money. You reckon the Chinese are going to sit back and whatch the value of 30 years worth of savings be inflated away? I don't think so....
You're not in Noddyland are you NA...if you were you would know the Kiwi$ has been devalued at approx 30% every ten years and is dropping a good 5% over this current year. A form of govt theft from savers. Govt policy NA. Your $10ooo in the tin under the bed will be worth less than $6ooo in 2020 !
Oky doky. But one parting thought for you. Why do you think the States is doing QE? Because they have an alternative? That's right. Things are so bad that they are prepared to do what they swore they never would. You can't devalue your way to propserity, and they know it. Thta's their dollar down, all of the rest of ours, money, up.
They aren't stupid, Gavin, they're frightenend. Have a look at Bernake's face next time its on TV. Fear makes rational people do irrational things. That's why when the property market 'goes' here, it will be big. Because all the pent up fear, the reality of 'we've lost it all' , is going to hit home like it has done elsewhere; the States being just one.
Careful NA...all that gold will at some stage have to be changed into paper or Bytes and on that day the buyer sets the price...what happens if the RBs everywhere pick on a lower buy price and signal a staged decline...say 1% a month. Who would 'buy' your pile of unusable ingots or coins....look at the way the art auction rooms were able to steal an increased take...guess what the Fed IMF and BIS will get up to when it comes to gold......!
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