There was another rush of new listings at the Auckland apartment auctions this week, but only just over a third were sold.
There were 25 properties on offer between the three main agencies that hold regular apartment auctions. Nine of them were sold under the hammer, giving an overall clearance rate of 36%.
Attendance by potential buyers was also up and there were bidders for most properties. But in many cases there is still a gap between the price buyers are prepared to pay and the price vendors expect to receive.
Post-auction negotiations are now the key to a successful sale for the majority of properties.
At City Sales this week 10 properties were offered and they were a real mix, with three of them having remediation issues.
However some buyers see a remediation project as an opportunity and two of the units attracted multiple bids and one sold under the hammer. There were no bids on the third.
Overall, three of the 10 apartments offered at City Sales sold under the hammer.
At Barfoot and Thompson's city rooms this week seven apartments and a warehouse in Onehunga were offered.
The warehouse sold under the hammer (the result is available on our Commercial Property Sales page), and there were multiple bidders on two of the apartments, three attracted a single bid and there were no bids on two of them.
Of the seven apartments offered, two sold under the hammer.
At Ray White City Apartments 10 properties were offered, one of which was a three bedroom house at Te Atatu South which sold for $649,000, and of the nine apartments offered, three sold under the hammer and six were passed in for sale by negotiation. Of the unsold properties, three had multiple bidders, two had a single bidder and one had no bids.
The details of all the apartments offered and the prices of those that sold can be viewed on our Residential Auction Results page.
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76 Comments
With over 12,000 houses and apartments for sale in the Auckland region on Trade me right now, how can there be a housing shortage?
I am becoming more and more convinced that the so called "housing Crisis" is a con job and doesn't exist.
There may be an "affordability" crisis but that's another matter all together which needs different solutions.
We can easily change the measures due to DEMOGRAPHICS and say "4 people to a house" rather than 2 point something, and suddenly we'll have a housing surplus. It's all about what fits the narrative for spruikers.
Two big reasons why houses were kept afloat were because of 1) overseas money from China, and 2) local investors trying to keep up with the mania. Now that the Chinese money has been stopped, and LVR rules restricting investors a bit more, we are suddenly left with only the locals to buy houses.
Guess what - local NZ incomes aren't built for million dollar mortgages.
It's only a matter of time until it all comes back down to reality - think 5-7 multiples of income rather than 10-11.
Hi RichMuhlach,
With Auckland's population increasing by around 900-1000 people per week (yes - you read that correctly) even dullards will understand the relevance of DEMOGRAPHICS to the housing market.
The reality is that, in this day and age, people don't want to be doubling/tripling up in houses.
RichMuhlach - as we know from our ancestors, cramming more people into cold/draughty/damp houses leads to the "diseases of overcrowding". Who wants to turn back the clock to the 19th Century? Public health is important. And so are modern-day lifestyles!
TTP
TTP perpetual subtext; "suttin, suttin, please keep buying house at inflated prices suttin, suttin"
hahahaha literally any possible, conceivable way to suggest that people should get in mountain of debt at current prices.
If DEMOGRAPHICS have always been such a factor, how on earth is inventory now rising and prices slowing??? Magic? Yes, must be magic.
Predicted response fromTTP;
"weirdly formal greeting.....suttin', suttin', rude, patronising.
Nuttin' nuttin' related whatsoever.
Suttin' *inflate house price expectation* + some big words.
Nuttin' nuttin'",
weirdly formal sign off"
Hi Gingerninja,
In the medium/long term, house prices will almost certainly go on rising - especially those which are in preferred locations.
There's not much that any of us as individuals can do about that.
If you don't like it, too bad. But suggest you make the most of the weekend anyway.
TTP
Hi Gingerninja
You wrote
"Predicted response fromTTP;
"weirdly formal greeting.....suttin', suttin', rude, patronising.
Nuttin' nuttin' related whatsoever.
Suttin' *inflate house price expectation* + some big words.
Nuttin' nuttin'",
weirdly formal sign off"
What you're failing to take into consideration is that TTP also likes to talk a lot about Oscillations.
NZD
TTP, when do the gyrations begin? Your predictions are best described as generic - lacking specifics. Yes, of course they are going to keep rising in the future (Yawn)! It's just increasingly likely they will drop in a precipitous way first! The specifics supporting such a drop in the future have been published on this site by people with excellent credentials. Have you read these articles carefully?
Hi R-P,
You use the word "precipitous" above.
That's a very big word, coming from you. In fact, it's as big a word as "wheelbarrow".
Do you know what it means? Or did you just use it to impress?
The reality is that there are plenty of credible sources who don't foresee a major drop in NZ house prices. Further, to date they're proven correct, as no big drop in prices has occurred - despite what people like you were mouthing on about more than a year ago.
TTP
TTP loves oscillations.
It explains a lot, though.
His fixation with "oscillations" is just a metaphor for his own inherent random walk personality.
I've come to realise he has no real idea of how market/economies/the world works.
I think his understanding just depends on what day it is and his propensity for tangency on said day.
Odd comment coming from you, Nymad.
We haven't forgotten that not so long ago you claimed to build econometric models - but then admitted that you didn't understand the difference between cyclical and structural factors. (You needed spoon-feeding on that very basic distinction!)
You're a bare-faced liar if ever there was.
TTP
TTP, Nymad always understood the difference between cyclical and structural factors, he was being facetious about the fact that you clearly don't!!!
Not everyone is a literal as you.
As for housing going up in price. OF COURSE THEY WILL. Sheesh. So will milk, so will bread, so will clothes so will everrrrrrything. Why state that absolutely bleeding obvious? All I ever ever said is that in all likelihood houses will return to the longer term trend. At the moment prices are way above the long term trend. That is what the term "correction" refers to. A price returning to the longer term trend, the ones grounded in reality and fundamentals (ie wages and affordability). Could be a long term flat price phase (which is more common in NZ) could be a slow decline, fast decline or complete apocalypse (which granted has not really happened in NZ history, although that does not completely negate the possibility).
What is super super annoying about everything you write, is that you refuse to acknowledge that the market has turned. That it is behaving differently than this time last year DESPITE ALL THE EVIDENCE. You can't provide a single scrap of evidence to show that the market is hot like in 2016.
And so far, nothing has surfaced to suggest that the market is warming again. In fact, as the data comes in, it looks to be continuing to cool, as a trend. That doesn't mean crash. But it is certainly still cooling.
I'm not a doomer or a gloomer. Markets can be bullish, and have been Markets can be bearish too. At some point the NZ market will be bullish again. That is hardly relevant to those of us on here, who are trying to time the market near as dammit, to get the best price we can. A time honoured tradition I might add. If you can get something cheaper, get it cheaper. It's not dooming and glooming, it's just not frivolous hysteria.
I think the root of the problem is that corrections are seen as a "negative" event. Corrections are in fact a positive thing - a reset you might say. TTP, heres your chance to become a positive commentator and make a difference. Remember, corrections are good things and we should have had more of them. Sadly, we now face a serious crisis because people such as yourself genuinely believed it could go on forever - completely naive. It's going to wind up being a mess. Reading your comments reminds me of an introductory speech to a pyramid scheme. TTP, when you comment, it sends of warning signals!
FHB beware, wait and watch it all unfold.
Hi Retired-Poppy,
That's a trite comment. It's devoid of context and, thus, meaning.
"Corrections", per se, says nothing useful because corrections can be upward (or downward) price movements.
But it's not just the direction, but also the scope/size of the correction which is important. A large downward correction in any given market would hardly be a "positive" event if it took the rest of the economy down with it - leading to mass unemployment, poverty, etc.
You need to give the subject area more thought.
TTP
Yes agree with you. Auckland has a accommodation affordability issue (i.e high rents relative to household income levels), house ownership affordability issue (high house prices relative to income levels) and not a housing shortfall. The politicians have labelled it as a housing crisis for their own political purposes.
Sure an apartment on leasehold land that has a steadily decreasing value, (and CV) and remediation issues sounds like a solid investment that any bank would be willing to give a FHB a loan with only 10% deposit.
Or did you mean the ex rental, also with leaking issues on flood prone land next to the stream which regularly floods every year? Or how about those properties next to the motorway and heavy industrial factories with high crime rates, no public transport, poor schools, no footpaths and require significant repairs due to failed consent issues anyone would surely want to bring kids up in a house there. Just find a FHB who can demolish and build from scratch, who can buy land even on the outskirts in areas with significant hazards.
People who can afford to buy at current prices have no incentive to do so. The general expectation is that prices will fall in the near future. Whatever their current living situation is. Their weekly disposable income is probably a lot higher than it would be once they become a home owner. Until potential buyers believe prices will rise in the near future they keep waiting and saving.Policy changes on the horizon mean that investors will not be picking up the slack either. So what of the new dwellings coming onto the market each day in Auckland. Even based on 2016 Code of Compliance numbers for new dwellings. There must be an average of around 20 dwellings a day being added to the current supply in Auckland.
WestieAJ “The general expectation is that prices will fall in the near future” I’d agree with your statement
There really needs only one more addition to make prices fall faster and that is interest rate hikes or employment downturn or GFC2 with credit restrictions or WW3 starts Basically any of the above or one other additional catalyst and the ponzi really unwinds.
There was no way my REstate was worth what I sold it for and one day the facade will lift on Auckland property prices.
I would hate to be a Real Estate Agent now that the new valuations have been handed out. People will be so proud of there new found wealth on paper. And now the agent will have to compete for the listing by most likely talking up the value more than his opponents AKA buying listings. When they have secured the listing contract for a minimum of 3 months you can be sure they will be back after the cliche 2 weeks to tell the vendor the market says your home is just not worth the asking price ! So it sits there getting very stale very quick with people losing interest because they wonder what is wrong with the home. Meanwhile the market is tanking and they could of sold the home for a much higher price at the beginning IF the Real Estate Agent was not talking up the value to secure the deal. New Valuations, higher interest rates, unrealistic expectations from vendors , desperate Agents buying listings = 2018 THE YEAR OF THE CRASH.
When has Double-GZ claimed he is "genuinely wealthy"? He's just a working guy who has got lucky with a bit of property. Made the right choices a few years back.
As for myself, I own a 20 year old car, wear a woolen hat inside in winter and boil the jug to do the washing up.
Notably, it's a sin to be successful here and achieve financial independence/security from prudent property investment.......
Or, at least that's the view of all the lefty/losers who hang around here.
I bet that even after the next upswing, most of them still won't have got their acts together sufficiently to buy their own homes. They'll still be moaning/yearning......... They mouth off endlessly - but never learn.
TTP
TTP, I am successful. I earn in the top earning bracket, I have invested, I have worked hard, I have post graduate qualifications. I'm not left, i'm centre. And no one has ever called me a loser.
I just happen to believe that society will be better for me and for my kids, if there is less inequality. I happen to think widening inequality will ultimately be bad for everyone, not just the poor. I consider taxes a civic duty for the betterment of society.
It is possible to be wealthy and not be a total C%$t you know.
Hi Gingerninja,
Your ego needs shrinking down to the size of an elephant.
Plenty of people have worked hard from very humble/modest beginnings: studied for qualifications, developed a career, carried out civic duty, purchased their own home and sometimes an investment portfolio, etc, etc......... (Plus paid a great deal in taxes to support others less fortunate.)
But they don't all go around shooting their mouths off about it.
The fact is that private housing in NZ has always been allocated via the market - and that's likely to continue. But NZ also has a good record in social housing - at least since the 1935 Labour Government - and certainly has done far more than many other western countries.
That private housing has become more expensive over the last few years reflects a number of factors, not the least being demographics and NZ becoming a rising star (preferred destination) internationally. The market's response to these circumstances is to ration the housing stock using the price mechanism.
Too bad if you don't like it. You're welcome to go back to England (and Brexit) or USA (and Trump) if you don't like it here.
TTP
Haha so much this, Gingerninja, especially the closing sentence! The narrow view of success on here, exhibited by a few, is quite laughable, you bought a house you're not Bill Gates...
You can't even afford the multiple houses you've "bought", negatively gearing everywhere, if you're working a nine to five job and complaining about rates, you simply do not have the money, nor should the bank ever have lent you the money, to "buy" multiple properties.
Solidname your comment is quite typical of a certain mindset around here. It's okay for the 1%ers to own multiple properties and live a life of luxury because they can easily afford it while a working person should keep to their station and not take any risks.
I remember my ex father-in-law, a painter, telling me that the worst people to work for were the wealthy because they often didn't pay their bills.
The wealthy didn't get wealthy by throwing their money away.
Hi Gingerninja. I'm with you on this. Centre voter, zero debt, own house, decent salary and yet I am also apparently a loony lefty. I want the same things you do. Inequality worries me. I don't want our future children becoming debt slaves to the banks for most of their adult life!
Taunuibabe, yup, the housing issue has become very polarised huh? And you can't win. Either you are a doomer/gloomer/loony leftie or egotistical because you dared to admit you are successful and yet still concerned about the housing market! It gets extreme on the other side too, the bulls are all accused of being RE agents or Dark Lords, which is another extreme. Admittedly you must have skin in the game, to want this housing market to stay so hot. There must be a reason why you would not care about the plight of the younger generations and future of NZ.
TPP also said I can go back to where I came from. As if that would be good for NZ? My husband is a Kiwi, my kids are Kiwi's, we run our own very successful IT business, all our clients are international, so we bring money from overseas, pay taxes in NZ and spend in NZ. Surely I am the exact type of immigrant NZ would prefer? But even though it would tear my family apart, apparently I can go back to the UK if I don't like what TPP thinks/ What a delightful chap.
Does anyone know what it means by "New CV $4.250M RV $5.020M" in this listing??
https://www.trademe.co.nz/property/residential-property-for-sale/auctio…
This one here sold for 6.35M:
https://www.bayleys.co.nz/1751360
But the RV is a whopping 8.80M. LOL, that's going to skew my figures. I'm leaving that one out!
DGZ - The RV above must mean Registered Valuation.
The truth is TTP has never written anything particularly outrageous. All his comments are fairly reasonable and I think it is the reaction to them he finds exasperating.
Everyone is like, yeah but what if WW3 breaks out or there is a super volcano in Auckland, what then? TTP is coming from how the economy and things are right now.
Zachary Smith, TTP is coming from how the economy and things are right now. What about offering advice backed up with specifics to help others plan the future. Demonstrate some imagination or wisdom.
FHB wait for the distressed sales - they are coming. Spruikers say "if you keep waiting you will never buy" - this is flawed advice, they do not care if you go bust. Spruikers are trying in vain to keep the bubble inflated. The truth about Spruikers is that they are forever in search of a bigger fool. Don't be that fool.
TTP, I think you should read this, written by Chris Bourke - who has excellent credentials : https://www.bloomberg.com/news/articles/2017-11-23/australia-faces-hous…
TTP has spoken, house prices are likely to rise in the near future. TTP, some real specifics please, when and why! No more of this "because it always has" waffle. Some real facts that eager FHB can cling to and not risk having their equity wiped out! No one wants that now do they?
Oh well Zachary, go ahead and flaunt your wealth and success
“As for myself, I own a 20 year old car, wear a woolen hat inside in winter and boil the jug to do the washing up.”
So sure, throw your fancy electrical jug et al in my face – while I put my aging saucepan on the wood fired stove, lucky to achieve a tepid cup of tea on the very best of days.
My goodness, what a disgraceful carry on - shame!!
Thank you Zachary – of course, as was intended!
My apparent new found friend TTP tossed me a rather juicy bone – however, having just returned from a rather pleasant meal out with my lovely wife I feel quite well nourished and in no need of any further sustenance.
Have a good evening.
I do wonder when TTP will realize that his spruiking is a waste of time on this site. Indeed, it is mostly a waste of time even on sites popular with the mindless. However, perhaps it is time that we all non spruikers totally ignore him. Maybe he delights in attention even if it is negative?
Stay on topic, stay on topic... http://rwby.wikia.com/wiki/File:Stay-on-topic.jpg
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