Residential auction activity in Auckland appears to be winding down after peaking in late February.
Interest.co.nz monitored 260 residential property auctions in the week from March 8-14. That was down from 307 the previous week, and the peak of 389 the week before that, - the last week of February.
This has taken the number of auctions back to almost exactly where it was a month ago.
It also means the number of properties auctioned in the week of March 8-14 was only marginally above the number auctioned in the equivalent week of last year (9-15 March, 2020).
However the sales rate remains significantly higher at 71% this year compared to 55% at the same time last year.
The main exception to the current buoyant market conditions is the CBD apartment market, with buyers remaining cautious at the main apartment auctions.
At City Sales' latest auction only one of the four properties offered were sold under the hammer and that was a modern, six bedroom, three bathroom terrace house on a leasehold title in Onehunga.
There was only one bidder for the property and it sold under the hammer for $125,000.
At Ray White City Apartments auction the following day, five apartments were offered and two were sold under the hammer.
Although both auctions attracted a reasonable number of potential buyers who weren't afraid to bid, they remained cautious on price and in most cases the gap between the price vendors were expecting to achieve and the price buyers were prepared to pay could not be closed on the day.
Details of the individual properties offered at all of the auctions monitored by interest.co.nz and the results achieved, are available on our Residential Auction Results page.
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83 Comments
Many people coming into NZ over the last 12 months, have only been doing it to use this country as a bolt hole, when the coast is clear, they will take their residencies of convenience and high tail it back to where they were before the pandemic struck, knowing the next time something like this happens they can do it all again.
They came, brought their money, spent it and helped businesses out.
Sometimes I think commenters on this site would prefer to live in a flavour of communist Russia.
You missed the point, when they come back here they need housing, when they leave, they won't. I'll leave you to ponder that
May be all missed the point? during current on/off peak hours of C19? NZ passport holders will not be eligible in fully funded way in healthcare & JA type of on going subsidies, try it in OZ & EU for start. Most of them? are the young one part of brain drain, not suppose to be back to pay their student loan but alas C19 put a dent on the plan.. until the next border opening.
And yip, please provide stat numbers - 'how many of those returning' really did end up buying.. 'sight unseen'.. out of how many again?
Let's just assume that's true for a moment. What on earth does it have to do with anybody buying houses?
Everything, once they leave again.
The markets cooling and reached its peak in February. A terrible 71% sales rate. We need more stimulus now...
“Market reached its peak in February?”
Mike could be right then with Feb 18 then? It could all be to do with the planets after all.
We wait and see. :)
I certainly hope astrology has nothing to do with it ...already too many variables to keep an eye on without having to consult my bloody horrorscope as well!
I know Bankers Trust Company, San Fran used to be mindful of the lunar cycles.
They didn't expect any and every full moon to deliver 'lunatic' market gyrations, but there had been enough of them over history to at least make them aware of the possibility.
Haha, so fun... not. You look pretty bad defending at all costs that the market will always go up, as if you had some vested interest which never want to disclose. :)
As per official data, after 20% rise till janaury and than 10% rise in just over a month, it is still rising.
A house in Manurewa, which was expecting near around million than after February news of $100000 rise was expecting 1.1 million plus, now after a fortnight is encouraging buyer over 1.2million and is a single dwelling zone. This reflect, How strong market is and CV is 880.
Affect of media and marketing in playing on FOMO of FHB.
As long as this ponzi is supported and promoted by government as had clearly mentioned by Jacinda, nothing will stop. It is government that is driving the market up and it is only government that can stop the ponzi, if they want But will they ?
If somebody wants to hand over 1.2 million to live out their days in a shitbox in manurewa that's their stupid decision. It demonstrates zero ambition or imagination.
Anybody with any sense would be buying a plane ticket out of this dull, overpriced rathole.
This is what the inside of a bubble looks like.
Were people not fighting over toilet paper... FOMO emotion is at peak and thinking and logic does not apply.
All Thanks to Queen supported by her Knight Mr Ribertson and Mr Orr.
BL - I assume you have bought you're " plane ticket out of this dull, overpriced rathole "
I only arrived back here a few months ago. But rest assured I have very little inclination to stay once my family commitments are addressed. Auckland is something best enjoyed in very small doses.
Brock...one of the worst thing about Auckland is having to listen to Aucklanders droning on about all those capital gains. As I tell my Auckland-based sister, the capital gain is worth very little if you have to slave away for 40 or 50 hours a week, stuck in Auckland until your mid 60s and when you retire you realize that while you have been infatuated with all those capital gains life has passed you by.
Well said Karl
And if you work the same hours as others in equivalent roles throughout the country,,? And if you enjoy living in Auckland, then those capital gains can be helpful should you decide to leave. Agree with you on one fact, working generally sucks and retiring early is a worthy goal. Run more, earn less
Retire young. #diewithzero
And you do not have to put up with living in Auckland to enjoy the capital gains of the Auckland property market. Once I built up my Auckland property portfolio I fled the place. With the traffic jams almost 24/7, nowhere to park and everyone carping on about what their house is worth, a few days a year is enough.
My suggestion is that if it’s that bad here then to try another country for a while and see how people like it.
I think people need to do that to really appreciate NZ.
The reality is that the world is competitive and the days of every man and his dog being able to afford a stand alone 3 bedroom kiwi house that most people grew up in are long gone.
In my experience almost everything is harder overseas than it is here unless you want to go and live in the 3rd world like a King.
Having lived in Australia and the United Kingdom that's not my experience. As a highly skilled professional New Zealand has very little to offer in comparison.
It seems to just be a lemon party of boomer real estate speculation here and very little else of note.
In my view, Australia is much better overall for people on middle incomes than NZ, due to the much lower cost of living.
Our household is upper middle income here in Auckland and things are always tight for us.
You either need a high income, and/or had bought a house many years ago, to feel relatively comfortable in Auckland.
It's a big struggle for many here.
If other countries are so great, why are there still 5 million people living here ?
Adiós!
Haere Ra!
Ma te wa!
It is possible to have newly built quality home in 750K in Melbourne but it is not at all possible in Auck, the interest rate is low and salaries are better than NZ.
Plus cost of living - fuel, groceries, utilities- significantly lower than NZ.
LordD...I have spent at least a year in the following countries: Thailand, The Cook Islands, The UK, Cambodia and The USA.
In my experience unless you have a youngish family or want a very quiet life NZ is just not that great in comparison especially if you do not have a good income stream. IMO for quality of life NZ would not stack up against any of the five countries mentioned above.
Karl You are right - or at least you are if you are childless. I have not been to the cook Islands but have spent over a year each in your other 4 countries. NZ is a great place to raise children but if you don't have kids there is not much to do most of the time - unless you enjoy listening to how well your neighbour's property portfolio is doing.
I agree. As a professional and doing project work, I have lived in S. America, N. America, UK, Russia, Indonesia, Mongolia and Canada. I returned to NZ, believing it would be a good place to retire. Housing is of a poor quality, expensive and living expenses are high. Upon my return, I was told that NZ is a good lifestyle choice - yeah right!
Sorry my Lord, in case you've missed? NZ housing cost if not mistaken on the planet is second only to Luxembourg from the top, Canada, UK, OZ, USA? were all below NZ by significant factors.
You need to work in well underfunded Oncology ward in NZ nationwide hospital, just to realised those which are 'wealthy enough?' in facing their death.. still asking for tax payers subsidy for expensive medication.. despite all of those free CGT, IF you're young productive age, qualified, experienced Healthcare professionals? - be in NZ, really? why? - OZ gave more (pay, living cost, meaningful life contribution, hunger for advance training, more control on Banks) - The opposite of unruly? already been exported from OZ to NZ; Banks, Grocery, Criminals, dumb governance, much of local culture superiority/cancel culture/others does not matters, terrorist.. etc. - NOTE: in case you missed? check out the escalating MSD clients, where are they being located to?
I think you are right Brock. I used to work with a young Kiwi in Sydney, who returned to NZ in the early days of Covid. He and his wife purchased a house here, but it's now back on the market as has a job already lined up in OZ again.
There's nothing to stop the binge, that's exactly the point of 'being sovereign' - RBNZ & govt, both have one job to do in the 'economy' to keep it stable, just don't let them know what constitute the NZ economy right now, nothing further than the rest of 'addiction industries' alcohol, gambling etc. - 'addiction to wealth' is a good thing.. so we all must keep up and push this snowball.
Mr Robertson and Jacinda Arden should not be playing with the dreams of many Kiwi, who are looking for a HOME and not a speculating stock.
https://www.theguardian.com/world/2021/mar/20/can-you-help-me-the-quiet…
If in coming week, Mr Robertson does not take any meaningful measures to control the speculative demand and cool the ponzi ( Though have doubts as now both are -#@$).
No 1 priority should be stop or regulate INTEREST ONKY LOAN, followed by DTI just LVR and finally increasing BLT besides any other measures that Brilliant people may have just as they had to ramp up the ponzi even in crisis.
What they should not do : Pass the blame to other, announce waiting for information or say waiting for advise and MOST IMPORTANTLY any measure announced should be on immediate basis without giving window of opportunity to go for a kill before the measures just like they did with reintroduction of LVR date.
Unfortunatly it's looking like the Tooth Fairy and Fat Controller are complicit in the agenda of the central banks (endless debt enslavement). Not holding my breath that anything meaningful to the people that voted for them will happen.
Their inactions dooms us to debasement via hyperinflation, just to protect the banking profit overlords.
I like the title given : Tooth Fairy and Fat Controller.
Any insult to such people is welcome and appreciated for what they are doing to the dreams of many who voted them.
John Key took away the home from many BUT JACINDA ARDEN HAS TAKEN AWAY EVEN THE DREAM OF A HOME FROM MANY....
Decide which is a bigger crime AND me think that killing the hope is a bigger crime but unfortunately in a democratic set up, cannot do much as this TOOTH FAIRY WILL BE QUEEN THAT NO ONE CAN TOUCH TILL NEXT ELECTION.
Real Shame.
Look at the medium house price in nz via REINZ. The real changes occurred from early 2000s in the Clark and Cullen era, not Key. The acceleration has been most rapid in the last 3 yrs....
Cheetahlegs66...The real changes to immigration also occurred from early 2000s and the acceleration has also been the most rapid in the last 5 years.
In the near short term, eventually all those 'essential workers' will know that they have been taken for a ride all along.. next step? banded together for rolling over & prolong strike in every avenue. Even JA will go mad when her household rubbing not being collected for couple months.
Princess toof toof the slave driving brain-guzzler and killer of hopes and dreams. She rides atop her entourage of Knights: Augustus Gloop whos snout is in the trough, and Sir Beetroot the slayer who work hard to ensure their Queen is well supplied and her craving for FHB and millennial brains to feast upon is sated. Princess toof toof and entourage are close descendants of Helen and her Henchmen. Offensive? Yes they are.
You need to see a counsellor.
You need a personality transplant. Property bore
Tooth tooth fairy is so horrific in her answers, when asked for house price increase, she become totally ignorant & start BS about increase in house ownership for FHB comparing 10 years back. It clearly shows how manipulative and thick skin she is.
Nothing will change until Labour is in power, they have fooled kiwis big time.
HaHaha...
Alittle, it is clear and evident that Mr Robertson under Jacinda has no intent of going against the ponzi otgerwise why would he he from February to March to announce any measures - May be as you rightly pointed out Mr Ribertsons favourite sentence is WAITING FOR MORE INFIRMATION and Jacinda Arden WAITING FOR ADVISE - when they are not serious and want to deflect otherwise are smart enough to understand and act fast like they all did with just a pssing thought that housing pyramid may stop rising - did not act immediately.
So rest assur that comming announcement will be just sound byte for media.
As far as acinda is concerned her next mission is to get a role in UN so is focusing on media coverage from international on how.......
She can send a letter to a child in London (obviously from her PR team) but FHB screaming in NZ can be royally ignored.
If they ban Interest Only Loan, it could be a game changer and it is for this very reason Mr Robertson will not touch it or take any meaningful action on Interest Only Loan for lack of political will by Jacinda Arden.
Wait and Watch for Mr Robertson stand up act in coming week.
It'll be a big stand up comedy act mistaken for a genuine effort by most kiwis
I am not sure banning interest only loans will be a game changer. There is still this wall of money of maturing term deposits coming up. Reinvestment rates are all less than 1% (ANZ TD from 30 days to 5 years have a maximum of 0.9%). Even at todays stratospheric prices, houses can still give a net rental yield of three times that.
I think will make a difference and also government will not touch it as they too know that most speculators are on interest only loan
Looks like apartments are getting very attractive right now.
You should get down to Specsavers.
I'm sick and tired of people not being able to put kiwis first. Another article in stuff calling us intolerant..
It's a bit old fashioned to think about putting Kiwis first. Everything is so fluid these days. Gender is fluid, race or ethnicity is fluid, identity is fluid. I asked a question, a brilliant question, the other day that no one seemed to notice and that was, "What even is a woman?" The same can be said for a Kiwi, what even is a Kiwi?
“Philosophy is a battle against the bewitchment of our intelligence by means of language.” - Wittgenstein
Zach... well I can tell you what I think a kiwi SHOULD be. A person born here or a person who is married to somebody born here and has moved here to live with their partner. I spent 20 years in Thailand. I will never be Thai and will never be given PR or be allowed to work there. I can live there on a yearly renewable basis as long as I show money in a Thai bank to support myself, do not take a job away from a Thai, do not buy property there and do not break any of their laws. They will review my situation annually and if they even suspect that I am a "net negative" to their country my annual visa will be denied and I will be removed and unable to return. The Thai's sensibly realize that they need to put their own people first and protect them. If only we cared enough to do the same.
Unfortunately, under the current system, the title of kiwi can be bought by anybody with a few thousand dollars and if you don't have the money you can work 80 hours a week (paid for 40) to purchase the citizenship.
To be clear, a foreigner can get PR in Thailand. I had the opportunity to get PR but turned it down. I didn’t plan to stay longer than I did and didn’t see the benefits. You just need five years in a row of work visas, a clean record and a few other bits and pieces like proficiency in the language. And anyone can get a work permit in Thailand, super easy.
EarlyRiser...PR is now very difficult and citizenship all but impossible. It was easier 10 or 15 years ago so I am guessing that is when you were offered it. Apart from being proficient in the language you would also need the right connections and have to pay a big fee and show you can support yourself. If you are employed by an international company they can get you a work permit but the number of foreigners working at each company is strictly controlled and limited based on the number of Thai staff ie one Westerner for x number of Thai staff. It is not super easy and the jobs foreigners can (legally ) do are very limited. I worked at The Oriental (which at the time was number one hotel in the world) in Bangkok for a while so also know the system pretty well. I am guessing you had a high level ex pat job for a multi national company if you were offered PR?
Karl, I don’t wish to go on about this as it’s going off on a tangent but no, nothing material has changed with PR applications in Thailand. It is the same as it has always been and basically boils down to 5 years continuous work permits, Thai language proficiency, clean criminal record. If you really did work at The Oriental for 20 years then you would have surely had work permits the whole time and GM Kurt Wachtveitl with all of his many contacts in the Thai establishment could have helped eased the process for you. To be clear, I was encouraged to apply for PR and not offered it. I personally know a dozen or so foreigners who have PR in Thailand and two who have citizenship (one American, one Dutch). And no, not one of them paid bribes.
EarlyRiser...I did not work at The Oriental for 20 years but ran the language/culture/customer services training there working 6 months a year for several years. Khun Kurt and I were very friendly and he often arranged staff parties where it was me and him and about 40 Thai women from their spa. Good times and no matter how unruly my behaviour was all the talk the next day was always about what Khun Kurt had got up to. Kurt is a legend in the industry and showed what can be done with an efficient, strong and caring management style. I will always remember his many totally un PC but hilarious comments ("got some fresh meat at the Spa today," LOL). His son Kim was one of my wifes customers and when I told him they were doing business together he said, "oh I hope it is not monkey business". We are very similar and he reminded me of my father a lot. I often wonder if he is still alive as he would be about 90 now. And yes, with The Oriental connections (as well as connections through training several CEOs of multi-national companies) and having money I would have been able to get PR, possibly citizenship.
But my point is it is very unusual and I am guessing your American and Dutch mates either got citizenship a long time ago or had very very good connections through their high powered jobs. Not impossible but very unusual.
And not many people are lucky enough to have had a chat with the likes of Mick Jagger, Roger Federer, Nicholas Cage etc through their work. And believe it or not, having a work permit is not a pre-requisite, even to work somewhere like The Oriental. Great memories. Thanks.
Bollocks. You can get PR in Thailand. I have a relative who has gone through it. It's a long tricky process but it is possible.
Vivid....It is possible but very very difficult. 15 or 20 years ago you could get it if you had lived there for years and could pay a reasonable fee (bribe). You will find that now, unless you have some very very high level connections or are a retired diplomat who worked at the NZ Embassy in Bangkok or a CEO of a multi-national company in Thailand it is a completely closed shop. My guess would be that there have been less than 50 kiwis granted Thai residency and citizenship in the last 10 years. You might be able to buy it for hundreds of thousands of dollars and the right person to arrange it.
Alongside Canada we have the least protective immigration policies in the developed world.
A good mate of mine married a Thai lady and they moved back to UK and both worked hard and paid off a house in the UK. In their mid 50s the wife persuaded the husband they should sell their house in the UK and move to sunny Thailand and buy a house there and live a nice retirement in the lovely weather. They bought a very nice house in Thailand (which had to go in his wife's name due to the rules). Within a year she kicked him out and he did not have a legal leg to stand on. The house was 100% hers. He lost 80% of his previous net worth.
KK....this (unfortunately) is the stock standard Western man/Thai lady story. Western men nearly always end up with the worst type of Thai lady because of the places they meet. You can buy an apartment or condo as long as the building is more than 50% Thai owned but rent is cheap and capital gains minimal (or non existent). In 20 years I never owned anything of value.
There is a great book by a kiwi, Warren Olsen (who I met years ago) called Confessions of a Thai Private Eye. True stories that will make you laugh and cry at the same time. I have a few mates who built a mansion in Thailand then got kicked out of their own home.
Karl I spent over a decade living in Thailand Vietnam and Cambodia. I could write a book of people I know who lost enormous amounts of money in failed romances. Like you say sad but funny at the same time.
KK...yeah they are great places and I cannot wait to get back to Thailand and Cambo for a few months a year once I get the jab. Another great book you might enjoy is Off The Rails in Phnom Pehn, which is a true story set in 1997, which is when I first spent time there. At that time the ex-pat community was so small it was obvious to me the places and even who many of the people he was writing about were even though he changed the names. A book well worth reading.
My best mate married a young Cambo girl, brought her to NZ, had 2 kids and divorced within 5 years and she is now living in Welly on our tax money (welfare) with no plans to ever work in her life. She has plans to get her mother and brother over here though. We are a caring, be kind lot here in NZ.
Karl I had an Aussie friend who married a cambo woman and bought themselves an old house in Snooky and renovated it completely and also built a sleepout. He went back to aussie for a month and when he got back she had taken a mortgage on the property - which he begrudgingly paid off and we joked he had bought his wife's house twice. He then went back to aussie on a medical trip and when he returned she had sold the house to complete strangers and was living in the sleepout. There was a big age difference and he himself acknowledged "no fool like an old fool"
KK.. yes all pretty standard. The "brother" who has often been around since day one invariably turns out to have been the boyfriend/husband all along. Snooky is fu---d now as they have let the Chinese come in there and build about 50 casinos without improving the infrastructure. Much more expensive there now and can be a bit dangerous at night. It is normally the "stolen motorbike" the Westerner has to pay for twice. The girl always gives it to her husband/BF and says it was stolen. But the beer is still cheap.
LOL - and I'm sick of Stuff and their woke agenda. I won't even be tempted by their clickbait.
Housing Ponzi - Is this the only way government knows of Kick Startimg the Economy.
Real shame to Tooth Fairy or is it Tooth W...
The banks seem to be getting a bit tougher. I contacted my bank and enquired about raising a new mortgage on another rental property. I calculated that another property could net me another $600 a month if I bought well.
My first surprise was that I was no longer a "premium" client and had to visit a branch. Apparently they just changed the criteria and I fell below it.
Visiting the branch I was further surprised to find that the maximum they would loan me was about half of what I was expecting. Making my plan almost impossible to realise.
No longer being regarded a premium client made me question the rationale behind my loyalty.
Now considering moving banks.
Wondering if they have suddenly got cold feet about lending money now. It could mean we are about to enter a much cooler market phase. I'd rather buy in that sort of market.
Really surprised that they are okay with losing me as a customer as I thought I was exceptionally prudent and in a very good position. Could possibly be my age with less than ten years to go before retirement. Yet my rental returns would cover everything and some.
Rats are the first to Jump sinking ship and some how they sense it fast...
I seem to recall in the UK, during one of its property downturns, that 30 years mortgages were fine if you were an applicant that met the lending criteria at 30 years of age. (BNZ's then sister operation - Clydesdale Bank, in this case)
At 50, with no other variables changed, the maximum term was 15 years.
Loans were not given that would exceed the standard retirement age. (NB: I'm sure that's probably changed over the last few years; that bank has)
It could be a 'stick' that Grant might use to curb investments by those who might otherwise buy another property today?
It's a bit like they changed the Student Loan rules here a bit back - no loan for you after 55 .
Opposite to my experience. I was expecting tougher response when I enquired last week to build 3 more houses and they said yep no worries we'll fund that. I didn't honestly think they'd be so forthcoming.
Here's a graph overlaying Net Immigration, Natural Population increase and Building Consents adjusted for 2.5 people per dwelling since 2001. Found on a Property Investors Chat Group on Facebook. The poster has clarified the Immigration and Natural Population bars are stacked.
Nzdan..interesting. Still haven't seen one comparing house prices and rents with immigration.
Looks like I was right that we need more migrants in order to raise the number of building consents.
See, increasing the number of migrants is the solution to the housing issues.
ELO 3000.
Keep baiting them to come here, and we will build. Once we are satisfied with the number of houses we have, cancel their visas.
100% PURE NEW ZEALAND
If I got the same kind of marketing budget, I'll hire the same Israelis to work for me anytime!
Haha!
Why did so many vote for her. COVID of course . She saved their lives and they rewarded her for her benevolence. Even farmers voted for her and big numbers of them. I presume many regret it as the government is asleep at the wheel. In fact they have not woken up for 3 and a half years. The poor are getting poorer by the day. I thought she had labour principals.
CWBW...Israelis love NZ, especially our world famous shellfish and pork. And many of them have computer skills almost half as good as the best Americans and you only have to pay them 10% of what an American would demand to move here and do the same job.
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