Auction activity remains relatively subdued throughout the country with fewer properties coming to auction and sales typically being acheived on 40% to 50% of them.
Auckland's largest real estate agency, Barfoot & Thompson, marketed 95 properties for auction last week and achieved sales on 40 of them (42%), with the rest either being passed in or in a small number of cases, withdrawn from auction just prior to the event or having their auction postponed.
The highest sales rates were achieved at the auctions held on site (50%), at the Manukau auction (48%) and at the Shortland Street auction on 13 October (57%), where most of the properties offered were in the middle to lower price bracket.
At the North Shore auctions just over a third (36%) of properties were sold (see chart below).
Prices ranged from $550,000 for a modern, two bedroom, brick and tile house at Papakura, to $2.2 million for a four bedroom villa in Mt Eden.
The full results are available on our Residential Auction Results page.
| Date | Location | Sold* | Not sold* | Total | % Sold |
| 9-15 October | On site | 5 | 5 | 10 | 50% |
| 10 October | Manukau | 11 | 12 | 23 | 48% |
| 10 October | Shortland St, CBD. | 2 | - | 2 | 100% |
| 11 October | Shortland St, CBD. | 7 | 12 | 19 | 37% |
| 11 October | Pukekohe | 1 | 5 | 6 | 17% |
| 12 October | North Shore | 9 | 16 | 25 | 36% |
| 12 October | Shortland St, CBD. | 1 | 2 | 3 | 33% |
| 13 October | Shortland St, CBD. | 4 | 3 | 7 | 57% |
| Total | All locations | 40 | 55 | 95 | 42% |
| *Sold includes properties sold under the hammer or by 5pm the following day. Not sold includes properties that remained unsold by 5pm the day after the auction, plus properties that were withdrawn from auction or that had their auction postponed. | |||||
51 Comments
I can't wait to see the flood of listings that hit the market over the coming months. All the price pressure is going to be coming from one side......
Immigration to be slashed, foreign buyers gone, interest rates heading up, no more capital gains for investors, capital gains tax in 3 years....it's pretty hard to conceive any positive outlook for property over the coming year...or two.....or three.
Pressure from the buyers side? Foreign buyers will see an increasingly limited opportunity to get into our market, while all buyers will see an opportunity to get in and fix interest rates ahead of projected interest rate rises -
I see it being a hot summer in the property market before the policies of the new government settle in!
Not in real estate, personally think they've done far too well out of this whole housing crisis we've found ourselves in!
My comment was more a reflection on the looming factors that are going to have an impact on the housing market in the near-term that wouldn't impact a buyer who headed out to buy now with a long-term view. If I was looking to buy, and especially if I wasn't currently a permanent resident, now would be a pretty good time to stake a claim.
Auckland house prices are almost the same as a year ago - possibly up a bit in the centre, down a bit on the periphery but with everyone else that has been going on they've been pretty stable. There's been plenty of articles throughout about impending doom and gloom.
The new government might lower yearly immigration but last time I checked we had already a massive imbalance on housing demand versus supply - lowering immigration is going to slow that rate of change, not make it disappear overnight.
And Auckland is where people want to live, where the jobs are, and where a third of population already wants to live - until that changes it's going to weather any downturn better than the rest of the country.
Oh and non-permanent residents might rush in to buy if by Christmas they're not going to be able to do it at all...
Prices may still just about be level in some parts of town from a year ago, but they are down from the peak just after that. They are most definitely now on a downward trend.
Immigration may still be occurring, however until these residents attain permanent residence or citizenship they will be unable to purchase a property. The fact that overseas investors will be unable to purchase, due to both currency flight restrictions now in place from China coupled with our new regimes forthcoming overseas investor rules means a significant number of potential cashed up purchasers are now effectively locked out of the game. As for Auckland being a place people want to live, I can't speak for everyone but I can't wait to get away from Phil's motorway tolls and Jacinda's petrol tax. Auckland is no longer the funky little city I grew up in, its just one massive traffic jam and no random tram to the airport is going to fix that!
In Christchurch we have just let 2 properties and had several people wanting both, with no down time.
Rent the same as last year and tenants are high quality moving from not as good properties looking for better.
Both were 4 bedrooms and well cared for homes.
October/November can at times be harder to let than Jan;Feb but clearly there is demand in Chch for good property.
We have plenty due up at the end of Jan and most have said that they wish to stay on at the same terms, with the odd exception and from initial discussion we will fill the empty ones with existing tenants departing but wanting smaller or larger.
Renting property in Christchurch isn’t as bad as many are saying providing you go about it the right way!
Yes many landlords have dropped their prices when maybe it wasn’t necessary.
From a tenant's perspective (currently looking for a new place in Chch), the market is far better than a couple of years ago. Lots of high quality properties around at good prices, my current landlord offered reduced rent to encourage me to stay, agents are extremely keen to get us to apply for places. Certainly more affordable and more choice than last time I looked.
Not that sure about Christchurch but I can’t imagine insurance being anywhere near the same per week as rates. It’s not Auckland. If I was to guess in Christchurch I’d say rates around $70 a week and insurance about $20. And if I’m close thats why Christchurch is so good and Auckland’s terrible. With rentals prices probably not that lower, just guessing tho
Focus: Nervous homeowners checking property prices. Nuff said.
http://www.nzherald.co.nz/business-video/news/video.cfm?c_id=1503079&ga…
I simply don't believe your figures. I have a small property in Mt. Maunganui which I have had for many years. It is debt-free and there is a good,long-term tenant. Based on a recent valuation,the gross yield is under 4%. I would accept that I charge less than the market would bear,but even a significant increase would only raise the yield by a small amount.
For your figures to be at all accurate,the price of the properties would have to have fallen dramatically.
"Gross yield on purchase price"... I suspect that this means that he has factored in capital gains into his yield. A long term investor would calculate yield as based on current valuation. If the yield is lower than the equivalent risk based yield found elsewhere, then the investor would sell. I'd be quite curious to hear what the yield is as based on the current market valuation. I suspect that the fully burdened current market valuation yield is less than that of a tong dated term deposit.
Gordon, you have no idea whatsoever.
Firstly I am not an agent , professional landlord that provides good quality housing.
Secondly prices aren’t dropping, there are less sales which is good for landlords.
Thirdly prices are irrelevant as we are investors not speculators and don’t need to sell when all positive returns.
Ringfencing wont affect us.
I just "analyzed" 35 of the Auckland sales just listed on the auction results page. A total of 44.724M in sales with a total CV (2014) of 29.630M. This is a new high of 50.94% over CV.
What is selling is still selling for very high prices and getting higher by the look of it.
Still haven't seen any obvious bargains.
It will be interesting to see what happens to the markets close to the KiwiBuild homes. We may see the market diverge with the lower value homes in KiwiBuild areas subdued and the higher value homes elsewhere less affected. I hope the new KiwiBuild homes get acceptance by those that they’re intended for. It isn’t going to be traditional kiwi living so as a past Australian boss once said to me, “suck it up princess”
ZS.
I still don't understand why you do this.
Continuing to do so highlights a very flawed or missing understanding of both schoolboy level statistics and the fundamental nature of a CV - selling price relationship.
Just look at the QV index for Auckland, if 35 sales is the extent of your 'analysis'. It uses a similar, but better methodology, and it will provide a much better story of the market than what you are wasting your time doing.
Nymad, I don't understand why you think it is just 35 sales. I've done a lot of these over a long period of time. Hundreds of them. It keeps me in tune with the market and what is happening and has enabled me to predict very accurately what next months results will be. I'm also looking for indications of distressed sales. Why does Interest.co bother with publishing these figures?
You are protesting too much I feel....I wonder why? Maybe just ignore the facts?
Edit:
Anyway this is data from just last week and is quite relevant - particularly on topic. My comment is purely a factual one.
The people who should be queried are those that are forever saying that prices are dropping rapidly in Auckland when the facts would indicate otherwise.
"enabled me to predict very accurately what next months results will be"
I call rubbish on that, given what the nature of the results should be from random sampling.
But do enlighten me on your technique to forecast growth.
If you are surveying 35 nonrandom properties of the approximately 3000 monthly sales in the Auckland region each month, you are just wasting your time.
Your results aren't factual at all. They are incredibly biased.
Your variances are going to be astronomically high, rendering any prediction worthless.
I'm just trying to help you save face on this site and prevent you wasting your time - you get enough stick, as it is.
Nymad, I don't believe for a second you are trying to help me save face. You have a different agenda. I suspect the real reason is that you think my "analysis" is dangerous, a form of spruiking. It does seem to annoy people but it shouldn't as it is just a few figures that are readily verifiable.
If anyone is interested... been an investor for 35 years in Auckland...We are in the doldrum years of the cycle, market will improve from 2020, great to see new Government to build ( hopefully ) 100,000 over 10 years... wait to see what they are....they will be 100sqm dwellings not all FHB's will want these....it will serve a worthy purpose but only increase the desirability of established suburbs in prime areas...thankyou
If its insulated and properly built. If its a 1950s tin roof & weatherboard with no insulation its freezing in winter and an oven in summer. But thankfully, in three weeks I'll be gone from this one, enjoying the market rent on a much nicer property that is costing the landlord in one way of another at least 10k a year on top of what we'll be paying.
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