Bayleys Real Estate achieved a sales clearance rate of 35% at their Auckland auctions last week.
Of the 26 homes marketed for sale by auction, nine were sold, 16 were passed in for sale by negotiation and one had its auction date postponed.
Highlights included a classic bungalow, plus a more modern cottage that were both on the same 984 square metre section in Onehunga and went for $1.55 million. There was also a four bedroom/two bathroom house on an 890 square metre section at Torbay that fetched $1.104 million, and a 2.1128 hectare section at Flat Bush that went for $2.5 million.
Down the line Bayleys auctioned a renovated three bedroom/two bathroom house on a 744 square metre section at Havelock North that went for $675,000 (pictured above).
The full results, with the prices achieved on all of the properties that sold are available on our Residential Auction Results page.
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43 Comments
Hi Grendel,
It's not an amazing result - but neither is it a bad result, all things considered. It's in keeping with auction outcomes of the last several months, as diligently reported here by Greg. A bit of a yawn really.
Better if you do something productive with yourself rather than "just waiting with my coffee". There are plenty of things to do in life that are more interesting than dwelling on run-of-the-mill property auction results.
Find yourself a new hobby, my friend.
You seem to constantly dwell on property auctions so it's kind of ridiculous to criticise others for just commenting. By all means try to put positive spin on the Auckland property market, just don't expect people to be suckers and fall for RE Agent excuses for falling house prices.
The auction results are interesting to study and compare what sold with homes.co.nz predictions. You can get a good idea of what type of propertycurrently sells at auction and what you need to probably sell by negotiation. It doesn't hurt to give auction a try, you may even be able to get the agent to cover the costs. It can serve to temper the vendor's expectations about value. I still think 35% sales indicate that it is worth going to auction first off.
In the last 2 weeks I've noticed a decrease in available listings for NSC and Rodney on Trademe, also "reduced" list is decreasing. This result confirms its not increased sales that's causing it, so must be less new listings as vendors are hunkering down for winter?
Listings for houses (as opposed to apartments) in Auckland Central are at historically low levels right now.
Ponsonby is an obvious example. As at this morning (4 July 2017) there are only three (3) houses listed for sale on realestate.co.nz in Ponsonby (which is a sizeable and popular inner-city suburb).
A friend who's looking for a house for her family in Auckland Central says she's despairing because, "There's nothing to find; people just aren't selling their houses...."
If you want an apartment, then it's easier. Notably, however, apartment sales are pulling the average/median sales price down - because, of course, apartments are generally less expensive than stand-alone properties.
It does appear that stand-alone properties have the best long-term investment potential. But that's not to deny that apartments have their positive attributes as homes for many people - including that they're generally more affordable and many are handy to the CBD. Convenience and the "throb of the city" are increasingly important factors for many Auckland residents.
Just before any asset market corrects ( either way!) hold-out seller/buyer refuse to 'list' their intentions ( "Why should I sell at less than I paid" being the obvious one). That's fine if markets stay put. But if prices continue to move, all hell breaks loose as those that 'held out' try to 'get out'.
It's no surprise that listings for decent properties is falling. But if the market moves lower...watch out!
(NB: The risk is that Negative Equity traps property holders in situ, and once that happens, the banks won't let 'owners' sell at all. Banks can ride it out. Individuals may not be able to, and if caught with NE, they are in for a long, frightening ride...)
There is supposed to be a housing shortage and from all sides people and politicians are beating their chests about it. More houses are being built than ever yet we see that demand is falling off with barely a third being sold when offered to the market. Don't forget that each owner of each property put up for sale has laid out thousands of dollars in advertising fees and costs just to end up with nothing. People who put their properties up for sale are not joking but making a serious financial commitment, only to be disappointed . Obviously the facts tell us that there is no housing shortage at all. Auctions are the true barometer of the health of the market. We are being fooled by the media and left wing politicians who use fake news in a desperate attempt to find something, anything, to have a cause. Sure there may be people living in cars or on the streets but they are but a tiny minority, The poor have always been with us regretfully no matter what the economy is doing. For months now auction results have consistently had a pathetic success rate of 30-40% which is astounding given the so called shortage. Something is wrong, very wrong, and may be the flat market is teetering of the edge of a major correction.
No you do not just "simply" move on as the facts prove. The number of houses sold as compared to last year has nose dived which proves that many sellers have wasted their money and are stuck with an unsold house, and their heavy costs just wasted. The danger is that if enough frustrated sellers decide to slash their asking price to achieve a sale then we will have the recession that no one says can happen.
I know quite a few because they constantly drop flyers in my letterbox and also because I am a home owner in the area and have been invited to their client events from time to time. I guess they want to foster a good relationship with the local residents so that we think of them if we do need to sell in the future.
With the new Ray White building now completed the residents are also encouraged to use their premises to hold meetings:
The Remuera Residents Association will hold its Annual General Meeting on Tuesday 4th July, in Remuera.
Venue: Ground floor, RAY WHITE building, 411-413 Remuera Road, Remuera;
Start time: 7.30pm. ** See you tonight Cowpat!
All Remuera residents are welcome to attend.
As much as i disagree with much of what ZS, DGZ and Tothepoint have to say, and I would love to see a correction in house prices as much as any other young person trying to buy a place to call home, their comments around good houses continuing to sell for high prices isnt too far wrong. They are generally no longer increasing at the crazy levels of 2016, and some are flat or smalls down for the year but the stock of good family homes on flat sections in good suburbs is tiny (I know as thats what i want to buy). Is there any point bleating on that the market isnt dropping in nice suburbs.. probably not. But neither is there much point running around saying the sky is falling, property prices are going to fall drastically, I told you so etc etc. It is frustrating that a lot of people made a lot of money (some of it only on paper) because of the sole reason they had unwavering faith in property prices going up. It is also frustrating when the above mentioned people go around back slapping each other when NZ is slowly being drowned by this disease of overpriced houses. But lets just leave them to it, dont rise to the click bait, and hope (probably blindly) that over time this sh!tfight gets sorted and our children and grandchildren can live in a home they own (and dont waste their lives talking about an otherwise unproductive asset)
You want a correction? A correction will throw thousands of people out of work.
No developer will build into a falling market and many who are in the middle of a project would go bust.
A market that is undergoing a correction, even a moderate one, will see carpenters, painters, concrete workers, electricians and all the other ancillary trades go down the gurgler. We will be lucky of the market just stays flat which will be bad enough. Be careful what you wish for.
Very true - Unfortunately all those current jobs are just a debt binge gone wrong. So a correction is coming regardless. The big question is whether its actually possible to re-kick start the banking system.
Unlike 08 interest rates are already low and China has already been through its debt binge. And pension funds are going broke at these low interest rates. And to top it off any correction will also push commodity prices even lower ... a debt based system reliant on growth meets finite resources.
A correction is absolutely necessary. If Auckland is to function efficiently, a new generation of people need access to the security and independence of home-ownership. In my direct experience, young teachers, lawyers, doctors and other professionals are turning their back on the city. New Zealand salaries don't stretch to million-dollar houses. For the low-waged, the situation is near desperate. The local rental sector is largely composed of speculators clawing their way to hoped-for capital gain - it has little or no economic or social function beyond this speculative 'retirement planning'.
For a generation, houses have been New Zealand's version of Holland's historic frenzy for speculating in tulips. And now the tulips here are wilting. That's too bad for those who've been amassing them or who depend on selling them on.
We've had (still have) a market without attention to fundamentals - driven instead by a reckless belief in new money, new investors, new buyers. The bankers have privileged property above any other lending, speculators have chased capital gains, money has arrived in container loads from overseas, and some have amassed significant property portfolios.
The fundamentals of housing are different. They're to do with human security - a basic human need. Where the market has ensured that this security is no longer affordable or available for the many seeking or in need of it, the market takes a tumble. The tide of asset price inflation turns the other way. One generation loses its speculative bets, another has the chance to own the roofs over their heads.
Yes, a correction will hurt. Many of those dependent on continuing high demand, continuing inflows of money, continuing asset price inflation, will lose out, some - sadly for them - will lose their shirts. Just like the Dutch with their tulips. Bubbles burst.
BAU ... until its not.
http://www.marketwatch.com/story/why-investors-should-brace-for-a-devas…
"There will be an extremely painful oil supply shortfall sometime between 2018 and 2020,” he explains. “It’ll be highly disruptive to our over-leveraged global financial system, given how saddled it is with record debts and unfunded IOUs.
A driving factor behind his doomsday view, as the chart below illustrates, is what’s shaping up to be a three-year decline in investment in the oil industry — something we’ve never seen before"
and a shrinking economy is no fun ...
https://www.dailysabah.com/economy/2017/07/04/85000-people-apply-for-ju…
Interesting to see how consistently property is selling at incredibly low volumes at auction and you only have very low chance of even having a successful sale. And according to some RE's they're only have a pitiful 6% clearence after auction negotiation sale rate. I'm surprised that anyone bothers to waste time selling at auction.
Out of work for a short time, with the prospects of future economic growth sounds better than years and years of economic stagnation, ask Japan.
Currently high house prices are sucking up future generation's disposable income. We need this to drive GDP growth. Also, most foreign investors/landlords are taking rents earned in NZ out of our economy, and not being re-invested in productive assets. If we don't have a correction soon, NZ will be looking at a prolonged period of low to no economic growth.
I agree a crash of property (NZ piggy bank) will be bad for the whole sector. Look back at the bankruptcy's from 2008 to see the wider impact. Mainzeal probably the most high profile victim (geeza management/directors aside), but they also took out 40-50 subcontractors and cost countless suppliers and customers approx $100m.
That said Bigdaddy, do you advocate a property correction, or massive inflation in wages/goods to catch up to housing? Surely the second option will just massively damage the value of retirement savings (large group of voters) and reward the debt junkie specuvestors (smaller group of voters)?
Interested in your thoughts.
Ignorance does hurt, BigDaddy. That's why people in any serious business learn not to ignore fundamentals. When these are awry, as they are - radically awry - in Auckland and other housing regions, people on the wrong side of them can get seriously hurt. I don't wish that on anybody - but people get themselves into all sorts of scrapes. I do desire reliable and affordable housing for all those engaged in any way in my businesses, as I do for those within my family. For this to happen, fundamentals need reasserting.
The average debt of every household has soared to almost twice annual incomes and rising, according to data that increases pressure on the Reserve Bank of Australia and bank regulators to avoid a property market disaster.
NZ can't be far behind on Household Debt, now......
http://www.afr.com/news/economy/record-debt-burden-raises-stakes-ahead-…
We're always behind Australia. Although it's a matter of maybe 10%. Looking at the household debt to income chart for NZ there's been steady growth in debt even though house prices have gone crazy over the past 3 years it seemingly hasn't affected the rate of debt growth. The same amount of debt increase just buys less houses.
Really we should try to spike up household debt to increase the volume of house sales. What could possibly go wrong?
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