It was a hard day at the office at the main Auckland apartment auctions this week with relatively few properties selling under the hammer.
Perhaps it was the cold, blustery weather, or the Convention Centre fire and the smoke and traffic hazards it created, or maybe buyers were focussed more on the upcoming long weekend, but they seemed particularly cautious.
At City Sales' auction on Wednesday, 11 apartments were on offer and they were a good mix, ranging from small student units more spacious, upmarket units that would have appealed to empty nesters making the move from the suburban family home to an apartment, and there was the odd leasehold apartment thrown in for good measure.
A reasonable crowd braved the toxic smoke and and traffic mayhem caused by the fire and turned up to bid and those that preferred to stay at home called-in to make to make telephone bids, so there was no shortage of potential buyers with all 11 properties attracting bids and most of them attracting multiple bids with some of the bidding being quite competitive.
But it was hard work trying to close the gap between the price vendors expected to achieve and the price buyers were prepared and by the end of the auction only two of the properties had sold under the hammer and a third sold in post-auction negotiations.
That opened the door to conditional buyers as well, which meant the agents would be busy getting down to the hard yards of negotiation over the next day or two..
At Ray White City Apartments' auction on Thursday, three units were on offer including a two bedroom/two bathroom unit with two car parks in the leasehold Landing complex near the historic former Central Railway Station, which sold for $213,000.
A modern one bedroom unit in Mt Eden attracted multiple bids but was passed in and a two bedroom unit in Federal Street in the CBD attracted just a single bid and was also passed in.
So whether buyers were being overly cautious or vendors were overly optimistic is hard to say, perhaps it was a bit of both but either way, the salespeople had their work cut out for them closing the gap.
Details and photos of all the properties offered at both auctions and the results achieved are available on our Residential Auction Results page.
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55 Comments
3 out of 11 is 27%.
"it was hard work trying to close the gap between the price vendors expected to achieve and the price buyers were prepared [to pay]" Par for the course going forward I'd say.
In interesting, relevant US news that sometimes seems to slip under the radar in NZ: Despite lower interest rates "The median price of new single-family houses in September fell 8.8% from a year ago to $299,400 – down 12.8% from the peak in Nov and Dec 2017 and back where the median price had first been in November 2014" Seems cheap compared to NZ, doesn't it, and dropping.
https://wolfstreet.com/2019/10/24/despite-ultra-low-mortgage-rates-new-…
Hard to get any substantial news in NZ nowadays, just garbage like TV
Indeed. posted on my LinkedIn site.
Slips under their radar for a reason: it contradicts the eternal confidence meme
But... but OneRoof tell me that "The Auction Frenzy is Back"
And this guy's property clock seems to be working again ...
https://www.tvnz.co.nz/one-news/new-zealand/has-aucklands-property-boun…
Looks like the property market promoters are trying to make a spring push, so that summer is good for business ...
Reminds of this experience in another property market - https://inquiries.oireachtas.ie/banking/hearings/julien-mercille-on-the…
He's BS merchant of the highest order. Don't even know why he's used as a 'commenator', he's not an economist.
The apartment in 15 Nelson Street included a carpark and still went for almost $100,000 below RV. Sold for $496,000. The building was remediated a few years ago so should (touch wood) be sound.
Maybe apartment buyers are aware there's a good amount of new supply coming on to the market.
There'll be a load of higher quality apartments for sale or rent after the America's Cup has finished. So many cool buildings going up now. Finally.
"But it was hard work trying to close the gap between the price vendors expected to achieve and the price buyers were prepared and by the end of the auction only two of the properties had sold under the hammer and a third sold in post-auction negotiations". Looks like Investors and new home owners are turning thrifty. Not willing to let the Real Estate Agents push them it to paying over inflated prices.
According to the wisdom of Meatloaf
"Now don't be sad
'Cause two out of three ain't bad"
two out of three unsold that is...
DGM fed a few crumbs this morning - a brief respite from their starvation diet.
Read their comments above and below, as they gobble them up like turkeys........
TTP
LOL That's a very feeble effort TTP. Come on, you could have used your oscillating market excuse or even the weather! :P
Greg already did a great job of listing all the possible excuses. Probably sarcastically.
Or the fire/smoke?
I wouldn't risk crawling on the floor looking for crumbs with all that rumbling in the distance... Better not get trampled to death by all those bulls.
Bit dishonest to go putting words in people's mouths there, TP.
Good analogy TTP, they (dgm) are like pesky pigeons trying to eat the scraps .... and then they drop crap all over the ground
For you'll to feast on
Haha. 2 out of 3 aint bad, these sales results are a disaster.
Investors will offer what their funders and/or cashflow lets tthem. Aka reality. A lot of unsophisticated "capital gain chat" over dinner types are going to face with commercial reality, especially as the extra stock starts hitting the market.
Perhaps this.... perhaps that.... Perhaps mercury was in retrograde at the time of the auction.
Perhaps the people who came out to bid suffered from smoke inhalation which depressed their price expectations.
Perhaps people are holding off for a sunny day with humidity at 85%.
or...
Perhaps vendors are trying to sell their dogboxes for too much money?
Just throwing out ideas here.
Lots of comments but few facts.
Facts are that fewer apartments are being sold than 12m ago.
Also, in each 12m ending month this year, fewer sold than in previous 12m ending, from may to August.
In 2018 it was opposite. Sales rose.
In the 12m to end of August in Auckland, apartments priced $250 - 600k sold 28% fewer than in previous 12m
(1603 v 1153)
So, we can go through auction entrails each week but the trend remains same.
10% more OTM today than on 2.9.19, and fewer selling: = problem = over-supply = price cuts coming
Hence, as reported, buyers won't cough up what vendors think it's worth.
This market disconnect will continue for quite a while, til prices come down.
Apartments and sections sold in unnatural numbers in mid 2018.
Now we have reality of OBB and reversion to mean
Sales of HOUSES in bracket 650-900 virtually same as last year, if slightly down.
Stuff over $1.2m sales up to 2m are 13% down on last year (8m)
Stuff over 2m is down 24% on last year.
Sales of residential in Auckland are running 11% lower than 2018 and slightly below 2017 even.
Interest rate cuts are not coming to rescue, sorry
"Interest rate cuts are not coming to rescue, sorry". Yes you're quite right Mike and neither will lifting restrictions on LVR's. Both options will only help to keep properties below the $1mil mark afloat for now.
Yep, got data on Parnell & Remuera today that backs that up (after similar data on Auckland's Eastern Suburbs earlier in the week)
See link:
https://ibb.co/khfqBpC
Same story, volumes hammered at the top end.
Auckland residential only sales, June-August 2017: 1646 pcm. 2019 = 1599.
2018 = 1772
So, 2019 is 2.8% below 2017 and 9.76% below 2018
The March - May comparison shows that 2019 was 12% below 2018 and 4% below 2017
So, their has been a slight improvement recently, but nothing to shout about.
And this is residential , NOT apartments, which as I said before, are selling 28% fewer in last 12m, than in prev 12m.
Finally for today:
apartments sales in period June - August in Auckland
2017: 795
2018: 861
2019: 673
So, 2019 is running 15% below 2017 and is 21.8% below 2018.
This indicates that last 3m is slightly better than the 12m series.
Mike, you won’t be making money selling real estate, by posting stats about the lack of apartments being sold in Auckland!
Lol you really can't let go of it, can you?
Are people supposed to work 24/7? Are you working right now? If not, why not? If yes, stop commenting!
Jester, I am a professional landlord, so I have the choice of what I do and when I do it!
Due to investing well I have a lifestyle that I control and not a boss.
Even as a professional landlord/Real Estate Agent, you should realize that completely pricing out your resident/FTB's will ultimately result in disaster. It has much bigger repercussions on the wider economy and wager earners then most REA's seem to realize. At the end of the day people will vote with their feet and cut you out as the middle man if you're not careful. Moving in with their parents or buying a more affordable self-build which is gathering pace in your neck of the woods. https://www.tinyhouseconference.nz/
There will always be a need for rental houses in NZ.
The thing is we are not very highly leveraged, and if we ever desire we can always sell, only problem is what would you invest in that is going to give us a 10% return and safe with appreciation?
"buying a more affordable self-build"
I finally agree with you CJ about ftb taking charge of their life and future BUT it is not happening nearly as much as it should be, the numbers are small still. If I was in that position I would do that.
STOP POSTING DATA, I DON'T LIKE IT
Nope..
362436 is data
36 24 36 is information - Real men love information!
LOL. Not sure if other readers appreciated the humour there Chairman Moa ...
Ah... telling the truth is the new fashion. Starting a trend!
Mike, you should get a job at the Statistics Department, suits you better!
Posting no. of sales etc. is pointless as most of the doomers won’t be buying at any time.
The investors on here will be relying on their own ability to buy well.
Stats are pointless and often don’t show a true picture
"Stats are pointless"
LOL
[Disclosure: I'm sitting on cash & gold - ready to go whenever]
Statistics are pointless when it comes to buying an individual property.
Only worthwhile when you are comparing apples with apples i.e. a shoebox in Hobsonville.
TM2, you should thinking about letting it go... now turn off your computer and go outside to play!
Let it go, let it go
Can't hold it back anymore
Let it go, let it go
Turn away and slam the door
I don't care what they're going to say
Let the storm rage on
The cold never bothered me anyway
Let it go, let it go
Can't hold it back anymore
Let it go, let it go
Turn away and slam the door
Let it go (go, go, go go, go go, go go, go, go, go go)
So right! Also TTP, Yvil, Houseworks and Dale you could learn a lot. Chill. :)
Unfortunately I know that song.
.
Real figures serve purpose of putting pin of poinard truth into bubbles of speculative confidence meme verbiage
You what?
TRUTH this maybe a new concept to you. Here's the dictionary definition: Truth; noun, plural truths [troothz, trooths] .
the true or actual state of a matter: He tried to find out the truth.
conformity with fact or reality; verity: the truth of a statement.
a verified or indisputable fact, proposition, principle, or the like: mathematical truths.
the state or character of being true.
actuality or actual existence.
an obvious or accepted fact; truism; platitude.
https://www.dictionary.com/browse/truth?s=t
.
That's the most meaningful thing you have ever written.
Haha fritz
What the reporter means is 'that opened the door to CONDTIONAL buyers as well', not UNCONDITIONAL buyers.
(You have to be an unconditional buyer to bid at auction.)
"Consistent with the recent revised National population estimates: At 30 June 2019, the subnational population estimates for 2018 have also been revised. These differ from the originally published 2018 estimates by about 44,500 across New Zealand.
The 2019 subnational resident population estimates now incorporate the outcomes-based measure of migration.
Of the 67 territorial authority areas, 11 were revised down with the largest revisions to Auckland (-77,400), Christchurch (-8,300), Wellington (-7,400), and Hamilton (-3,500) cities. The largest upwards revisions were to Tauranga city (5,800), Hastings district (3,300), the Far North and Western Bay of Plenty districts (both with 2,800)."
Do all our great economists take these revisions into consideration.. definitely NOT
It's doom and gloom heaven in little ole NZ this morning...
Now the spruikers can blame the ABs loss for a stagnant property market!
Guests nights in Auckland started to creep lower, that will accelerate faster to the downside
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