Harcourts achieved sales on just under 50% of the residential properties the agency took to auction last week.
Of the 113 properties Harcourts marketed for auction throughout the country, sales were achieved on 54, giving an overall sales clearance rate of 48%.
Most of the action was in Auckland and Christchurch with remarkably similar clearance rates in both cities.
In Auckland 50 properties were auctioned and sales were achieved on 22 of them, giving a clearance rate of 44%. In Christchurch 47 properties went under the hammer and 20 of them found new owners, giving a clearance rate of 43%.
The cheapest sales of the week were two adjacent, earthquake damaged houses at New Brighton in Christchurch, one of which sold for $195,000 and the other for $205,000.
The most expensive sale was a four bedroom, transitional villa at Takapuna on Auckland's North Shore that fetched $2,445,000.
The auction results with photos and details of the properties auctioned and the prices of those sold are available on our Residential Auction Results page.
If you are interested in commercial property, check out our Commercial Property Sales page.
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IMF warns that using consumer debt to fuel growth risks crisis.
The International Monetary Fund has issued a warning to governments that rely on debt-fuelled consumer spending to boost economic growth, telling them they run the risk of another major financial collapse.
In a report before the IMF’s annual meeting in Washington next week, it said analysis of consumer spending and levels of household debt showed that economies benefited in the first two to three years when households raised their levels of borrowing, but then risks began to mount.
Once growth becomes dependent on household debt, it can be a matter of two to three years before a financial crash, the IMF said in its annual report on the global financial system.
...In a blogpost accompanying the report, one of the authors, Nico Valckx, warned: “Debt greases the wheels of the economy. It allows individuals to make big investments today – like buying a house or going to college – by pledging some of their future earnings. That’s all fine in theory. But as the global financial crisis showed, rapid growth in household debt – especially mortgages – can be dangerous.”
If what we've been doing is import larger debt in order to fund our buying off each other, as the source for economic "growth", wouldn't the alternative course of action be to actually invest in increasing our productivity and our productive investment instead in order to import earnings rather than debt?
National used to talk a lot of their aspiration to close the gap with Australia. This talk disappeared in recent times as it became more obvious they've not done this, but have instead relied on immigration and housing to drive economic growth. It seems short-term expediency has won out over productive investment.
The failure is abated by the current Governments favor for the investor both local and foreign with tax free capital gains, expense credits and under supply, will maintain prices. But could quickly be cut short if rules change; supply, interest rates and unemployment increases or natural disaster (being the shaky isles and all).
It could be a severe drop (to 4 times average income?) when it happens, as this has been suppressed and propped up for so long - decades, with debt levels at unsustainable levels - far more than what the local essential services work force can afford :(
The current consequence NZ has now is poverty, homelessness, displacement (families schools), mental health issues & body, crime etc. for the tax payer to pick up while local and foreign investors get rich :)
We need housing prices to drop. Take the pain. And realise the best thing is to never let it happen again. We CANT try and hold prices up where they are and find a fix. The damage is the high prices. We’ve hit a rock anyway so prices will fall anyway. Some made money on the way up , some will lose on the way down. If we want to keep playing this boom bust game at these massive levels that’s life.
You can pump out all the hot air that you want Yvil, that's still not going to help matters. Having looked over the latest auction results we can clearly see that prices are headed south. Even if mortgage interest rates dropped to zero that still wouldn't be enough to keep those massively over inflated house prices up.
After the GFC of 2008 interest rates dropped 5% and that didn’t get the market up again . When investors have a ballie full a dept only time can fix it. Thing is if prices actually go down it makes it 10 times worse for investors heavily in dept. They simply can’t raise money. Thankfully they’re normally only a small % of the housing stock so life goes on
As I have constantly been saying g that the Christchurch average price has been drastically reduced by the huge number of as is where is property.
195k and 205k in New Brighton heavily reduces prices and skews what the average price of a home in Chch.
Chch is still very affordable compared to Auckland
And offers a hell of a lot by way of quality living.
ChCh will be the city of choice in the future as the CBD gets rebuilt.
75% clearance outside Auckland/ Christchurch ie 12 of 16. Welington/ Kapiti Coast was 6/7 week ending Oct 1, 6/7 week ending Sept 24, and 7/8 week ending Sept 17, week ending Sept 10 10/11.
So overall Wellington/ Kapiti Coast via Harcourts last 4 weeks 29/33 sold so 87% clearance rate. From attending auctions, properties that don't sell tend to have a problem eg monolithic or cross-leased high end properties. Strong demand, 1 in 4 chance of selling for a "I can't believe it sold for that" price.
Japan fixed their earthquake damaged cities within months and we've taken almost 7 years, its not going to happen mate
Yes, but Japan is an industrial powerhouse and extremely efficient at reacting to disaster. It's part of their national psyche.
It will take NZ 20+ years to build a light rail line to Auckland Airport from the city center.
Different leagues.
You might want to see where the powerhouse s at with "fixing" the fukushima nuclear plant ...
http://www.telegraph.co.uk/news/2017/07/14/fishermen-express-fury-fukus…
"Local residents and environmental groups have condemned a plan to release radioactive tritium from the crippled Fukushima nuclear plant into the Pacific Ocean. Officials of Tokyo Electric Power Co., the operator of the plant, say tritium poses little risk to human health and is quickly diluted by the ocean..."
Japan - Earthquake, Tsunami, Nuclear disaster (still to be fully remedied). They even rebuilt huge sea walls to slow down the future "inevitable" (and save lives and property.) We (NZ) are truly pathetic at recovery, great at pity parties and finger pointing tho..
I am unsure of that.
I think that the challenge is that Christchurch has lost many of the little lane-ways and old buildings that give it character. Many start up business (which are the basis of innovation) are dependent on cheap quirky spaces. Similarly many bars and restaurants want cheap rental and interesting spaces. In the same way ChCh is not tied to a city centre the way Wellington or Auckland is. If you are an accounting firm you can be based on the outskirts where your clients can park, rather than in the CBD where you have to talk to other agencies or big corporates.
The result is that ChCh may be less appealing for students who want a 'university experience'; or tourists who want to wander around the streets around the river and the square; or start up businesses who want the inner city vibe.
As a person on the ground, I can tell you that car parking in the CBD is becoming scarcer and more expensive due to the number of people moving back into CBD office space. Critical mass will be reached probably by Christmas when people start to use the centre rather than the suburbs. The Crossing has opened, the Terrace is coming soon, Central city cinema not far behind.
Agree with you, DGZ.
And that applies to Wellington, as well as Auckland.
Queen Street in Auckland and Lambton Quay/Willis Street in Wellington ought to be full-width promenades, reserved for walkers and perhaps bicycles.
The appeal of both CBDs would improve greatly.
The same reason that they go to any city centre, Show me a successful city with easy parking in the CBD. Although cheap parking is getting harder, there is still lots of expensive parking available in parking buildings. By the way, expensive down here means $8+/day :)
Frazz, yes it has been a helluva long time in the making.
Problem was that the Govt. Bought up the central land did nothing with it.
Private landowners had trouble getting the insurance money at times plus the increased building costs.
Things have picked up significantly in the last 6 months and starting to look promising.
Have spoken to many people in the know and the consensus is that Chch is going to be the most desired place to live in NZ for quality of life, and I can assure you that house prices will move north as more people move to Chch.
I disagree. Chch has learnt (the hard way) how to scale up building and land supply and should remain more elastic to demand than other cities. This will ensure the quality of life.
Looking at trademe listings, Canterbury has 5,004 vs 9,618 in Auckland (52%) despite having 37% of the population of Auckland.
The CBD is arguably already ballsed up. It's still not even finished and parking is starting to get maxed out, and traffic is still bad as the car is the only real method of transport into the CBD from the outskirts. Building more god awful subdivisions around Wigram and the western suburbs doesn't help either as they all need cars to get to work. They should have put in light rail to reduce car dependency and built a tonne of apartments to try and increase housing density.
I went down pre-earthquake, just after and haven't been down for a couple of years. What you've just described - light rail, apartments etc.. was what I hoped they would do, seems like they haven't, which was what I thought they would do - so desperately short-sighted.
The rebuild was a perfect time to completely change and redo the CBD into a highly livable and workable space, but they blew it. They should have looked at progressive European cities like Copenhagen or Stockholm for ideas on how to make the CBD better. High housing density, mixed purpose buildings (cafes/offices/apartments), large green spaces, more gardens, light rail, a comprehensive shuttle network to get around the CBD, cycle ways with bikes for hire... Instead it's build more houses on the periphery causing everyone to drive to work in the CBD and create more traffic. Stupid, ignorant and very shortsighted.
Disagree with what?
What on earth has the no. Of listings compared to population got to,do,with anything.
There has been so many extra houses built in new subdivisions over the past few years plus all,the sections available, so buyers are spoilt for choice.
Many Auckland type buyers are now living in Chch and into the future will grow.
Depends whether you want an attractive easy lifestyle in Chch or a tiring lifestyle in Auckland with mortgage stress!!
The Boy many from Christchurch are living all over the rest of NZ. Who can blame them. Your weather and your proneness to earthquakes. That is why listings are up and prices and rents are down in Christchurch. Personally if I had the choice , Auckland. Much warmer and more opportunities. As I live in a nice regional capital I don't have to make the decision.
I believe Kiwimm disagrees about your comment that house prices will increase in Christchurch as much as you think, as housing supply here is now more elastic compared to Auckland. Elasticity = housing demand can be met adequately = market equilibrium occurs = less house price inflation.
As for listings compared to population, over saturation in the housing market means asset price stagnation and/or reduced inflation.
Fortunately, house price stagnation in Christchurch is positive as the last thing New Zealand needs is another city with overpriced housing that shafts young Kiwis.
I'm sure someone can quantify this using an Internet Archive tool (such as Wayback Machine or something) but something worth noting is TradeMe listings for Auckland properties have hovered around 9k listings even all throughout winter. Now that spring has arrived, I have noticed that listings are starting to creep up again. Was 9.3k a few weeks ago then 9.4k, then 9.5k and now above 9.6k.
So both winter and elections are now over, I expect this number to increase even more. Probably around 15k listings by December? Maybe 20k by February?
This is true for anywhere on earth. Looking at the geological record, the next big one in Chch is due in 16,000 years. The next big one is Wellington is overdue (last one in 1855 with average 150 year frequency)
https://www.geonet.org.nz/earthquake/forecast/canterbury
Christchurch also now the safest place to be in NZ if an earthquake strikes.
Living on a lifestyle property in a regional capital The Boy I would have to disagree. Your terrible weather, earthquakes, lack of infrastructure , pot holes, decimated city centre and abandoned areas struggles to beat the crazy traffic in Auckland. I would have to chose Auckland if I had to shift. And there are no "as is where is" properties up there unlike your town. That says it all. Hence house prices and rents drifting down as more people give up on a town that will never be the same it was. It must be terrible thinking each day I am worth less than yesterday as prices slowly but surely fall back. I wish I was more diversified investment wise. Putting all ones eggs in one basket is always a risk. Being an agent you got a bit carried away.
To me quality of life is great in Auckland. I would live on the Shore close to the beaches, great for the kids.
But another good thing about Auckland is the proximity to the North and its beaches, and to Coromandel and its beaches plus the Mount.
As someone who has lived in London who loves going to the beach Auckland is really good from that respect. But as gordon has said about lifestyle block and still be close to beaches.
Overall, pretty well as prices and rents jumped due to the shortage of habitable properties. Now the shortage has been reversed, we are seeing these gains unwind. Now, the investors down here buy cheap, unfixed as is where is properties and rent them out for high yields
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