The number of homes sold under the hammer dropped down to 16% at Barfoot & Thompson's main Manukau auction last week, with more than half the properties offered failing to attract a single bid.
Interest.co.nz monitors and collates the results of four major auctions conducted by Barfoot & Thompson each week, one at Manukau, which covers the markets in south and east Auckland, one on the North Shore and two at Barfoot's head office in the CBD, which cover properties in Auckland's central and western suburbs (see table below).
A notable feature of last week's auctions was the high number of homes being offered, however the number of homes being sold under the hammer remains well below recent levels.
At the Manukau auction 49 homes were offered but only eight were sold under the hammer, leaving the remaining 41 to be sold by negotiation.
A bigger concern was that of the 41 properties that were passed in, 29 received no bids at all which was more than half of all the properties auctioned on the day.
The North Shore auction was also a biggy with 40 properties offered and just over a third selling under the hammer. But just under half of the properties offered attracted no bids.
The most successful auction of those monitored by interest.co.nz was held at Barfoot's Shortland St auction rooms in the CBD last Friday, where 21 homes were auctioned and 12 (57%) were sold under the hammer.
A noticeable trend at recent auctions has been the reduced numbers of Chinese migrant buyers in attendance and agents report that fewer have also been attending open homes and this appears to be having a significant impact on the market.
And in general terms central Auckland properties located within the boundaries of the former Auckland City Council, particularly those within the prized double grammar school zones, appear to be selling more readily than those on the North Shore and in south Auckland.
The full results of the four Barfoot & Thompson auctions monitored by interest.co.nz are available on our Auctions/Sales Results page.
| Venue | Auctioned | Sold | Passed in | No Bids |
| Manukau Sports Bowl, 15 November 2016 | 49 | 8 | 41 | 29 |
| Shortland St CBD, 16 November 2016 | 69 | 31 | 48 | 25 |
| Bruce Mason Centre, Takapuna. 17 November 2016 | 40 | 14 | 26 | 18 |
| Shortland St CBD. 18 November 2016 | 21 | 12 | 9 | 6 |
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98 Comments
I spoke to an agent at an empty open home yesterday who made me laugh as she tried to convince me and herself that the market wasn't dying. She called it a "sideways up" market (whatever that means) then said that all was not lost as the Americans were all going to flood in now with their dollars, buying up New Zealand. I didnt have the heart to remind her that they need 160 points to get residency now and that the Brits interest peaked after Brexit but they didn't follow through with applying. It's just all hot air like the endless supply of 'overseas buyers' dumping their money - they were just speculators like everyone else. They all lose interest the moment the market turns.
That last line is the bit that gets ignored. The market has more investors / speculators than at any other time in memory, 50% in Auckland? That whole section of the market could disappear. Whereas a market of predominantly owner / occupiers still have to get on and move, buy, sell etc. I think the battle that agents, media and others fight is to keep out any perception of a falling market. If they lose that battle, they lose control of the whole frickin' house of cards.
"...The market has more investors / speculators than at any other time in memory, 50% in Auckland? That whole section of the market could disappear...." Ahhhh, newsflash I think that whole section of the market has in essence disappeared (or at least 50% of whatever buyers has) macbet, at least for now. Not great figures given the height of the selling/buying season should be well underway by now.
People selling to move don't add to housing demand as they sell one, buy one, net zero.
The whole american wave of immigrants leaving and coming to NZ because of Trump is an absolutely hysterical load of nonsense being bandied about.
For those with the desire and means to make a move their day to day standard of living in the USA exceeds ours and couldn't be replicated here!!!
Unlike other countries like China or India where we are a utopia..
At the most we will get a few VERY wealthy but high-profile names who want a bolt hole but there will be no massive amount of their middle class heading down-under - hilarious to think otherwise.
As an aside went for a long run on Beach Road on East Coast Bays of Auckland's North Shore yesterday....most of the open homes I passed in the early afternoon had no one there. Literally empty...
Interestingly many many of the large "FOR SALE" signs also had a fixed price displayed on them but in quite small type so not obvious until you stopped in front of them - you wouldn't see it from a car for instance. All on properties $1M up...some worried looking RE agents standing alone by their leased Range Rovers...
yeah it's bollocks. Most of the people who say there will be a stampede of Americans coming to NZ are the ones with a vested interest in said stampede, in my experience.
It's a fantasy.
We'll probably get a few more high net worth yanks coming here, and a small general tick up, but not a stampede
Well, it depends doesn't it.
in some of the nice bigger cities like Houston you can still buy a decent family home for a good price.
But the social security is poorer, for sure.
I'd avoid any sweeping statements. Undoubtedly some things are better there for some people, some things are better here for some people.
I've lived many years there and many years here. Let's put it this way: it's much more expensive for me to fund the same standard of living here as compared to there. Chose different locations on either or both ends and that could change. I think it would be safe to say that most Americans would find NZ to be very expensive (and salaries to be low and taxes to be high).
I don't think prices will rise again for a long time. At best they will drop 10% then even out. I would try and sell now and be prepared to take a reasonable price that is less than you would have got a year ago. Interest rates are set to rise worldwide post Trump. Once the next lot of REINZ figures come out you will see an increase in panic selling I reckon and the market flooded in the new year. No harm in giving it go before Christmas. There is still uncertainty among some people so you might get lucky.
As a prospective FHB I am waiting on the sidelines to see what happens with all this supply and investors seemingly less interested.
I've been contacted in the past week by 2 real estate agents (who I met months ago at open homes) asking if I am still looking. Smells like desperation.
Well..... TradeMe properties for sale in Aukland city 2258 right now .... 2100 a week ago ....1300 3-4 months ago. So - it was supply issue right? Chinese buyers are gone, investors are gone and almost DOUBLED properties for sale in few months ... it is going to be very, very interesting!
Looks like we are at Denial https://goo.gl/images/3p3T2o
I don't think we've hit either of those phases yet - greed, delusion, new paradigm seemed to be recycling for an extended length of time.
Funniest image I get is visualising the possible phases to come given the take off point was around 2000-2001. There could be serious carnage.
Attended an auction over the weekend. Completely packed out, plenty of the old Chinese crowd, but only two bidders (one Chinese) and the bidding was reluctant and took considerable coaxing. The Chinese appeared rather disinterested, some left during proceedings and I got the impression that almost everyone there were just info-gatherers like myself. This house was prime 1st/2nd home buyer and/or Chinese family and/or investment fodder, but it sold by the skin of its teeth to a non-Chinese investor.
Anyone with a less desirable property is going to take a big hit and I don't think it's too long before there's a long wait to sell even better spec'd properties (as is common overseas and used to be common here).
Interestingly, I also had a word with the REA about the slowing market and auction clearance rates. The REA was admitting nothing, even in the face of the obvious. Results at auction are still good, all is sunny in the land of plenty. These people must take classes in positive thinking.
In related news:
http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=117…
Thanks Ron, but you can keep your falling knife. I'm good.
Wow, that's one hell of an article. I wonder if any of Ron's houses are leaky:
http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=117…
I feel an impending sense of emptiness coming on. However will I fill my day without the breathless property market prognostications on interest.co to give me perspective on what really matters?
The thundering demands that government take more heavy handed intervention measures, partiers insisting the music will go on for ever, FHB's raining fire and brimstone on the heads of boomer PI's, demands that foreigners be tarred and feathered - all gone, the cacophony silenced by the inevitable ebbing of the property market tide now upon us.
Life won't be anywhere near as entertaining, which is a bit sad.
But there might even be some discussion about alternative investments....... that is if there actually are any outside of property of course.
Don't worry there are still the land supply nuts like me to prognosticate bad news for you. The land supply restrictions of Auckland Council are the gifts that keep on giving off a horrible stinking smell no matter what market we are in.
On an upward trajectory high population growth rate market - like we have had - our land supply restrictions have amplified the upswing of land price attracting high levels of speculators who can cash in on soaring land costs, whilst imposing that same high land cost against new builds and slowing our construction rate to a crawl.
On a downward trajectory market Auckland becomes more interesting, but still very awful.
If a downward trajectory is merely due to speculators withdrawing from the market, but population growth continues then there will soon be a small fall in property prices and an increase in rental costs. A smart investment may be to retire capital now and reinvest in rental property when returns become acceptable.
However if a downward trajectory is due less to speculation and more to population transfer away from Auckland, then rental prices will not be rising and there is no floor to the market until we reach the implied price level of our Auckland City Council planned land supply availability. If you are interested the land supply constraints of Auckland Council allow just enough land for about the minimum growth projection of Auckland population, growth rates akin to Wellington - so if you are looking for an absolute floor in Auckland property market look at Wellington prices.
Oh and one more thing a downward trajectory on house prices spells big problems for Auckland's construction industry. Which means that rental costs should go up faster and either realise bigger returns on investment property or encourage more people to leave town.
Fun times.
Yes he is correct - but unfortunately leveraging up on debt for unproductive assets like housing may create wealth for an individual but not for the country otherwise GDP wouldve gone through the roof by now and everyone would be "wealthier"
I mean how many Ron's are sustainable?
So whilst there is truth in his wider comment the vehicle he is using is the EXACT problem from a bigger picture perspective.
Add a boost in supply to an uptick in interest rates and you might even get a full symphony.
Talking to the bank last week about helping us with another wee venture, my how things have changed compared with a few months ago. Cautious as an ice road trucker in a spring thaw.
This actually annoys me no end. Why in this country do we continually go from boom to bust? The banks seem to be all of the same mindset - lend, lend, lend like there's no tomorrow, then one gets the shits, pulls back, and they all follow suit like sheep. Meanwhile the general populous suck it up, and batten down the hatches until the next credit splurg.
Have recently returned from a month in U.S. and Canada.
I can assure you that although most people didn't like the options for President many expressed huge interest in leaving U.S.A. If Trump did get in and N.Z. was definitely on many of the people's destination of choice.
I am telling you now that the standard of living is far superior in NZ than in America and there is huge discontent over there with The cost of living and the many taxes that we don't have including death duties, and many property taxes.
I couldn't live over there even if I was paid to.
I can assure you from several Real Estate Agents in Chch that there have been several hundred thousand people from U.S. Registering their interest about coming to N.Z.
I know that people will say bollocks and think that they know better but Just wait and see, as NZ quality of living is first class if you are willing to want to achieve things!
Franz, I didn't say they were all coming to ChCh, but the agents have access to some site that shows the registrations!
Look, many on this site always look at everything as being negative when they should be looking at NZ with a far more positive attitude.
I have done a fair bit of travel around the world and there is not another country in the world that I feel more comfortable in and the opportunities here do exist.
I do appreciate that there are many people who may be struggling financially, but I guarantee that if they were living in other countries then they would be no better off at best!
I also agree that it is difficult to purchase a home in Auckland now but many on here have been moaning about the prices of The houses in Auckland for many years and when they were a third of what they are now.
If you can't afford Auckland move south where opportunities still are!
Everywhere has its pros and cons including NZ. We are far from perfect and kiwis who think we are far superior to anywhere else are deluded.
Having said that I think our lack of aggressive Islamic fundamentalists is a great pro in this day and age, something I certainly appreciate.
Actually 13,000 have registered interest. http://www.newstalkzb.co.nz/news/national/13-000-americans-register-int…
It was similar levels after Brexit but the actual applications didn't rise. People believe they will give up everything when there is political upheaval but life goes on as normal. The realities and costs of emigration soon sink in, particularly when they compare NZ salaries with house prices. The grand old US of A will not be saving the NZ housing market.
Yes. And?
The peak would have come ~2 days after the elections, and tailing off from there.
I'd be surprised if there were any elevated levels of interest still persisting.
So, 13k is essentially your pool.
You've really got to stop believing the rhetoric, man.
I've said it before to you, go and see a financial adviser. It might rebalance your biases.
Besides American applications are less successful than other nationalities apparently. South Africans and Filipinos are very successful as they choose careers that are in demand in other countries as they know they will one day want to escape crime or corruption. Americans, as a population, will not have not developed such strategies. Contrary to what most people believe it is wry difficult to get residency here now.
The Man to avoid if you are looking for a reasoned argument,backed by some evidence to support his assertions.
Your month in both countries may not led you to the realisation that they are big,very big and have huge variations in standards of living. My last visits to San Francisco and Vancouver gave me an impression of quite high standards of living,but I drew no hard and fast conclusions from that.
I think you are missing the point - the SORT of American who is dissatisfied and actually has the wider world experience and actual MEANS / ABILITY to move would have a hell of a shock coming down here.....they would be urban "liberal" achievers from larger cities - talk about culture shock
My North American friends just about fall over in shock when they visit - Everything is hellishly expensive here compared to the USA.
Food, Cars, Gasoline, Housing, Travel and bloody low incomes and if you come from California or warmer states then the weather here sucks.
And there is not the convenience of life in the USA - everything at your fingertips 24/7....the amazing lack of scale in our economy to start a business.
All of them say - "lovely place for a vacation" but don't know how you pay so much to live here.
They will not be coming in droves - period.
You sound so desperate to find the reasons why your so called precious rentals will retain their values. Interest rates will not rise much, Americans are coming here in droves etc etc. Just accept it. You live in a world of markets. You have had a good run but the tide is turning. You might survive but many will not as they bought too high with too much debt. You have an added risk of living in a location where there is huge earthquake potential and it is very cold in winter.
Sluggy ....was in the US (Washington DC area) for the election 4 days before and 5 days after.....totally agree with your comments, the people are not happy at all ...but what amazes me is the "myopic" one-eyed MSM in Nuzullun, also the RE agents, property spruikers, bankers et al who have jumped on this "all the Americans want to come to NZ" bandwagon ...what a load of &*(^&^(()#%#^ !!!!
If they wanted to come here, they were already looking before the election and the numbers the above clowns are talking about is a "drop in the big. blue ocean" !
Economically, why on earth would an American want to come to Auckland ???
Straight away they would be faced with the most expensive houses in the world, as compared to average income ....which brings me to my second point, the incomes for good jobs are just not the same as the US.
For all you MSM "Mike Hosking" fans out there, the American MSM got caught out big time, with their "rigged" polls and comments, all backing the Democrats - and look at the election result !!
When the "sheeple" finally wake up and realise the Auckland housing market is "rigged" the MSM in NZ will have nothing to talk about .... not that they have much anyway, ever counted the "shaggy dog" stories aired !!
Ignorance is bliss ............
Ever heard of Wanaka? (It's in the south, where the summers are hot and dry and the winters are cold and snowy - just how a lot of people like it.) Central Otago will do okay out of Trump, as Americans have already swarmed there and no doubt some more will follow now. The Trump refugee numbers won't be huge but the dollars they pay will be. Auckland holds no attraction for them.
Yes...a very few, but very wealthy will come. They will have a beautiful house here in a resort town and keep their business interests in the US where they can make real money. Playing solely at the Top End of the market.
It will be nothing like the mass immigration from India and China which has affected the NZ middle classes looking for an average home in Auckland/WGN/CHC...
South ? A simple search will reveal EARTHQUAKE country
nothing more than a blip up here on yank networks
The rich go everywhere regardless of a Trump or not.
They'll still be in NORTH ISLANDs" The Bay of Islands" in NZ's summer on their yachts or in their holiday homes there just like the rich Germans & British
The thing is, it's also a fault of regulation. It's just too attractive to invest in property at the moment rather than bother with anything productive.
What we need is some push so that when people think about investing in property they think why would I do that, it only loses money. If that was the first thought in people's minds, then technology and innovations would be the way to go.
There has to be property investors in NZ to provide housing to people that want or need to rent.
Without them it would be up to the NZ government to provide the state housing and that only encourages people to be reliant on the state to provide everything.
The reality is that anyone could have been a landlord if they wanted to be.
The fact that many on here keep booking on about the price of housing and greedy landlords etc. just shows that many are just green with envy and they wouldn't have the same thoughts if they had bothered to be a landlord,,and they certainly would be a hell of a lot better off financially today.
Just the plain simple truth!!!
Frazz, interest rates will rise a pittance.
I am mostly fixed at over 5 per cent at the moment anyway so rates are still well under 5 per cent so they can rise another per cent and still won't be any worse off.
Debt level to asset level low so rise in rates or drop in house values which,is unlikely won't personally affect me personally too much, but will in Auckland as I have previously stated many times.
The plain and simple truth is that before all this nonsense started we all pretty much owned our own homes, that changed by allowing to happen, what has happened, No jealousy, mate, you can take that off your list, it is a desire to see this country to return to some sort of equilibrium where this goes and see my grandchildren able to own their own homes. I saw it start first hand, knew it was wrong then, still know it is wrong.
"There has to be property investors in NZ to provide housing to people that want or need to rent." Rubbish! Get rid of the investors and properties are affordable again and they can afford to buy rather than rent. Investors are nothing more than parasites. They bleed people dry, charging exorbitant rents, don't care that those rents are simply not affordable and contributing to the poverty trap.
Murray, firstly even when houses were $20,000 there were people renting so there will always be people who want to rent or can't afford to buy.
Secondly, in Auckland investors or speculators are heavily subsidising the housing of their tenants so not sure how you can say they are charging exorbitant rents????
Murray, you have one big chip on your shoulders, so,I suggest you take a deep breath and chill out for the sake of your health.
Sure - landlords are subsidizing rents out of the goodness of their hearts. Nonsense.
The FACTS are - WE - the taxpayers subsidize your mortgages - via your tenants with the accommodation supplement to the tune of $2 BILLION dollars very year.
"Professional Landlords" are the problem - not the solution.
When landlords start a real business (that actually employs multiple people, payes wages that get spent every day in the economy, creates something new of value, pays GST, PAYE etc) or actually build new housing stock for rental then they can continue the deluded and relentless self back slapping about how "awesome" they are.
"Subsidizing rents" wouldn't that better read as "meeting the market" just the way just about everything else has to, why should landlords be singled out as special and not needing to do that. For that reason I would like to see the taxpayer not subsidizing them further with accommodation supplements, MacDonalds don't do, neither should landlords.
Got sidetracked so some delay here - sorry.
No chip just a healthy dose of reality, understanding the effects of speculation on the social impacts of housing. Investors or speculators subsidising accommodation? Rubbish! They are parasites being forced to moderate their greed a little by market forces. How many of your houses are rented out at $200 per week or less? (Not rooms, whole houses) $200 is about 25 - 30 % of the take home median wage and is IMHO an affordable level. Any more than that then you are entering into the area of denying your tenants the opportunity to save (assuming they sensibly manage their money) and become reliant on accommodation supplements, or in other words Tax Payer subsidies, and you cease to be providing a social service and become a parasite, benefiting no one but yourself. My guess is that none of your houses are rented at an affordable level.
I agree that there will always be people who choose to rent, but the operative word is CHOOSE. Today's renters are largely trapped into renting, too many have been denied a choice, and are forced to by greedy investors manipulating the market and a corrupt Government refusing to act to protect the very people they are supposed to represent.
As a property investor, I love downturns as actually is the phase where the most money is made. Accumulate during downturn and early recovery then sit back during bull phase of market. A lot of fun during bear phase, as many properties on market, can try to snare a bargain, think about redevelopment and other ways can add value. Auctions with minimal or no takers, positive cash flow deals. I think you will find most professional investors look forward to the bear phase of the market
Certainly pay more than my fair share of tax on every property, and it is never an easy ride being a landlord I can assure you.
As for greedy, I would say more like an intelligent investor but no doubt many others will come back with other names, but like water off a ducks back on here.
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