Bayleys had a cracker of a week in its auction rooms, selling 61% of the properties offered in Auckland and 50% in Hamilton, giving an overall clearance rate of 59%.
At the Auckland residential auctions, prices ranged from $530,000 for a one bedroom apartment in The Dilworth building on the corner of Queen and Customs Streets in the CBD, to $3.211 million for a four bedroom house on an 1184 square metre waterfront site at Farm Cove.
There was also good interest in a couple of commercial properties offered at the same auctions, with a restaurant premises in Mt Eden selling for $3.61 million, and a retail unit in Glen Eden occupied by a Mad Butcher outlet selling for $1.375 million.
At the Hamilton auction a mix of residential, rural lifestyle and residential properties were on offer, with half of them finding new owners.
Sales included a two bedroom house at Cambridge that went for $425,000 (pictured), and a 6290 square metre lifestyle block at Paeroa that fetched $202,000.
The fulls results from both the Auckland and Waikato auctions are available on our Auction Results page.
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62 Comments
Not a bad outcome at all - and significantly up on Auckland's average auction clearance rate of the last few months. Congratulations to vendors and purchasers!
And this is mid-winter, with the General Election just 90 days away......
Perhaps we're seeing a bit of a resurgence of activity in the Auckland housing market?? Or is it premature??
A good result. I get the feeling a little bit of confidence is creeping back in. People are picking up do ups when they become available at reasonably discounted prices. An auction is still a good way to start your marketing campaign as contrary to popular opinion a lot of the work is done at this stage and if it doesn't sell it is reasonably straightforward to move on to sale by negotiation after getting an idea about its value and popularity. Okay taking my REA hat off now.
Zachary I have been keeping an eye on this property at 25 Ridings Rd.
http://www.boulgarisrealty.com/listings/17230409/
The auction is next week and I think it will go for over $4m i.e. over the homes.co.nz median of $3.74m. The only problem I noticed when attending the open home was that you can see Rangitoto from the upstairs balcony but not the water, so not sure how much it will affect the price.
Zachary it is the first impression that counts when buying properties I'm afraid. When I was searching for this address on homes.co.nz I found out that 5 Ridings Rd sold for a whopping $7m just last month (11th May)! OMG it's well over the highest price of the estimate ;)
http://www.boulgarisrealty.com/listings/16864427/
Comparing the sales prices with the estimations shown in homes.co.nz gives a fair idea of what is going on. So far the prices seem to match fairly well, perhaps a slight drop. For people who are moving house, if they get their new house at a bit of a discount then they can afford to discount their current one too.
During the very hot phase of the market it was quite dangerous to sell your house before buying a new one as you would soon find yourself unable to purchase even an equivalent at the price you sold at. Changing houses now should be a lot easier with vendors open to signing contracts that have more conditions like depending on a buyer's house sale or much longer settlement dates. We are not seeing a lot of that yet which indicates to me that the market is still fairly buoyant.
Actually Zachary I just went through them on this very wet Auckland morning and most are below or on the mid range price for homes.co.nz. To be honest, even I was surprised that even in the expensive areas like Takapuna and Bucklands Beach that prices look to be slipping already.
In Remuera DGZ the prices are still inching upwards month by month as people are starting to realise that quality properties in quality suburbs are always going to be in great demand. A RE friend advised that:
'the luxury market has been particularly strong the last week with several mid-week viewings on property in the upper $10m price bracket in Remuera. Within the mix of buyers viewing property, several clients have arrived in Auckland to attend the much-anticipated Lions Tour.'
Hey Greg, Please can you still list the 'number of units sold' in your article, since that's really important if your to list to the sales percentages. Even in these latest auction results we're really talking very small beans in terms of number of sales, which appears to be just 10 properties sold in Auckland and 3 properties in the regions.
Otherwise the RE's and property Ponzi pushers get way too excited and this could misguide First Time Buyers in to thinking that the market is recovering when it clearly isn't and it still needs to bottom out.
I appreciate Bayleys had a 'cracker of a week 'in its auction rooms. Sparklers and double happy's all round. The agents must have been squeezed into packed rooms as bidding wars broke out and mortgage brokers with sausage sizzles waiting outside . Bayleys sold a grand total of 9 ( that is a single digit) residential Auckland properties for the week ending 23 June . It failed to sell 9 residential properties that made it into those auction rooms full of fireworks . 9/18 residential properties . Greg certainly has his little group of merry followers. Ducks are being lined up. Crack crack crack quack.
I was going to say great headline (SPIN).. but did anyone bother to check the "actual" number that were up for auction.. Also Bayley's are known to mainly sell the "higher end" properties in whatever locations.. Anyhow the article should have included actual sales numbers NOT just a percentage.. I would expect better from Greg.. normally very and balanced informative..
That is, of course, a very good point: the absolute numbers are important in any proper monitoring/analysis.
Nonetheless, the percentage outcome above as reported by Greg is hardly indicative that the market is stagnant - or that a "crash" is imminent.
As noted above, in some of the preferred suburbs/localities of Auckland, prices are actually "inching up".
For instance, listings are few and far between in Ponsonby/Freemans Bay/St Mary's Bay. Look for yourself on realestate.co.nz. There are very few 2/3/4 bedroom houses on the market in those suburbs but, by all accounts, plenty of prospective buyers wanting to live in a central city suburb.
Yesterday
In the 1960's there was a drift of the Auckland affluent out to rural lifestyle blocks in areas like Ardmore, Hunua, even out to the Bombays. When the 1970's OIL crises happened together with Muldoon's carless days, commuting that took considerable time suddenly became very less desirable which showed up in property prices in inner suburbs increasing outrageously, Freemans Bay, Parnell, Ponsonby, Grey Lynn, Herne bay, Westmere
Today
The new world drama of commuting around Auckland is really no different to those days of yore, the worse traffic gets on the motorways, the more frequent the holdups and crashes and blockages that bring the city to a grinding halt, the more attractive those inner suburbs become AGAIN
The probability of property prices going down in these areas is ZERO
I went to an auction in Greenhithe today as a nosey local (Sunday), 37A Roland Rd. Has a RV of $1.2M, on homes.co.nz ($1.72M). Sold for $2.71M at auction. Has a 2 bed outer dwelling for income. Some areas are still steaming along well.
Best thing was the buyer does not have a chinky sounding name.
Zachary, I went to an onsite auction this afternoon to prove to myself that everything I read about house prices flattening is flawed, and the fact that I don't believe the house prices are dropping. So there I was at 36 Omahu Rd at 3:00pm on a lazy Sunday afternoon, observing a market-like crowd before my own eyes. The bidding started a little late at 3:45pm and after witnessing some frenzy bidding by quite a few groups, the house sold under the hammer for $3,000,000. Again, as we have noticed recently, this is well above the homes.co.nz highest estimated price of $2.5m and almost 80% above the CV of $1.6m. It almost feels like only you and I know what's really happening in the market right now.
http://rwremuera.co.nz/auckland/remuera/36-omahu-road-16806765/
Youtube: https://youtu.be/KYp80sYFipU
Certainly the full section properties in Central Auckland remain very desirable and there seems to be plenty of buyers with a lot of money for these. Going by recent sales for similar sized properties the Omahu Rd place seems like a #GoodBuy. There is very little to buy around where I live currently.
I know someone who is selling up three rental properties this week to raise funds to settle on a lifestyle block so the outcome of those auctions will be interesting.
Hi Zachary,
I agree that "full section properties" in Auckland have become very desirable - especially in the inner city suburbs.
It's the land itself that underpins the value of these properties, so they're bound to be an excellent long-term investment.
I guess part of the reason why apartments have flourished is that they allow people to live close to the city, but without the price of a stand-alone property. So apartments make sense to me - so long as they're structurally sound.
Indeed. Being offensive doesn't improve one's credibility.
Everyone who contributes here ought to respect that people have different views - and are entitle to their own opinions.
Being decent to fellow contributors makes visiting here a more pleasant (and worthwhile) experience.
Please - let's all try to keep the standard high.
And also the "Li not Lee" followed by "Bruce Lee?" comments... when you take trolling too far and get so out of touch with reality that casual racism becomes the norm... sad!
Racism starts small. Sometimes it lives in everyday actions and comments that we laugh off, nod in agreement to, excuse, and therefore accept. But we don’t have to. We can stop casual racism from growing into something more extreme. We can give it no encouragement. No respect. No place. No power. We can give it nothing. www.givenothing.co.nz
Hi Cowpat,
In my view, posts that contain language that is racist (or might be construed as racist) should be deleted - and their authors suspended.
Racist language ought not to be tolerated anywhere.
As I stated above, we should all be trying to keep the standard high.
It's the America's Cup not American Cup, and yes house prices are about to go bananas with one win away and all the rich, wealthy and famous will flock to Auckland to set base here especially in the inner city suburbs, DGZ and the Bays close to the sea and sailing action. Let's not jinx it, and hope we bring the cup back to Auckland! Go ETNZ!!
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