The sales rate at Barfoot & Thompson's latest auctions topped 40% although the numbers of properties being auctioned remains at winter lows.
Barfoot marketed 83 residential properties for sale by auction last week and achieved sales on 34 of them, giving an overall sales clearance rate of 41%.
Only three auctions had 10 or more properties on offer - the Manukau auction which had a sales rate of exactly a third, the Shortland Street auction on 25 July where properties from a wide mix of locations were offered and sales were achieved on exactly half of them, and the North Shore auction where the sales rate was 39%.
It was a tie for the lowest sales rate between the Whangarei auction and the Shortland Street auction on 27 July, with both achieving sales on 25% of the properties scheduled for sale, while the Shortland Street auction on 24 July took line honours with a sales rate of 71% (see table below for the full results).
Details of all of the properties offered and the prices achieved on most of those that sold are available on our Residential Auction Results page.
| Date | Venue | Sold | Not Sold | Total | % Sold |
| 23-29 July | On site | 3 | 4 | 7 | 43% |
| 24 July | Manukau | 6 | 12 | 18 | 33% |
| 24 July | Shortland St, CBD. | 5 | 2 | 7 | 71% |
| 25 July | Whangarei | 1 | 3 | 4 | 25% |
| 25 July | Shortland St, CBD. | 6 | 6 | 12 | 50% |
| 25 July | Pukekohe | 1 | 2 | 3 | 33% |
| 26 July | Shortland St, CBD. | 3 | 3 | 6 | 50% |
| 26 July | North Shore | 7 | 11 | 18 | 39% |
| 27 July | Shortland St, CBD. | 2 | 6 | 8 | 25% |
| Total | All venues | 34 | 49 | 83 | 41% |
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61 Comments
Auction clearance rates have “oscillated” between a 30-50% average for some time. I would say a clearance rate of 70% is healthy, in excess of 85% is strong. We used to be in the 90%s. I am struggling to see how a clearance rate around the 40%s could be viewed as good, except to the extent it could be said “it could be worse” or “it’s poor but at least it’s been at a consistent level of poor”. I think you are clutching at straws. You might validly say that it doesn’t matter as a low proportion of sales are concluded by auction, although it does indicate to me there is generally a serious mismatch in the market between vendor and purchaser price expectations. But I don’t think you do yourself many favours by describing the current auction results as “excellent” or even “good”. That’s a bit trolly.
1 out of 9 exceeding 50% is excellent results? And total average of 41%? I guess it is better than in teh 30s like it has been, but looking at healthier (but still declining markets) like Sydney where 60% is the cutoff between poor or good show just how poorly the Auckland market is fairing.
lol, DGMs have talked themselves so much into the crash idea and now became very itchy and sensitive about any good / Normal news from the market...
Maybe they need to set up a Union and picket outside Auction sites to get their messages across and emotions felt by the capable Wise folks buying in this market.
July results are not very far away - Get ready for checking market bottoms. time runs so fast ...
They do seem overly sensitive to a good result. They don't seem to understand that my excellent means excellent in the current market. Shortland St 24th July seven properties were auctioned and five sold.
A seller with a good property and realistic expectations can go to auction with a reasonable degree of confidence.
We saw a wild ride up in recent times but we are not seeing a wild ride down. Things seem quite stable.
lol, DGMs have talked themselves so much into the crash idea and now became very itchy and sensitive about any good / Normal news from the market...
Maybe they need to set up a Union and picket outside Auction sites to get their messages across and emotions felt by the capable Wise folks buying in this market.
July results are not very far away - Get ready for checking market bottoms. time runs so fast ...
Eco Bird, re - your mentor John Keys recent interview with Mike Hosking and his raising concerns of a downturn. Is he a DGM too? What about John Mauldin or Liam Dann, are they also DGM's? By loose labelling others as DGM's, I think you're casting a shadow over your own financial future.
Unless July Realestate.co.nz figures are a marked upward change on a per annum basis from Junes, Auckland house prices overall are still falling.
lol, I am not surprised that you cannot tell the difference between Chalk and Cheese RP ....
lol, I thought you didn't believe what Sir JK said yesterday and joined the mob in mocking what he predicted ... hahaha
But get ready, TD rates are coming down .... While my loan interest rates have just gone down a notch i.e. I Will make more money by Paying less interest this year ( almost free insurance ) -
I am now tempted to look for another investment property .. this is the bottom of the Market and time to make a new investment while everyone else continues moaning ...
If Sir JK is correct, then property prices will sizzle again soon.. and Investment properties will be the best place to park money in.
Eco Bird .... in your vast sphere of economic knowledge, in regard to residential property, what do you think is a good rate of gross return on a rental property (say the the market stayed flat for 3 years, so no capital gains at all) ???
My quick formula is cost price, say $1,250,000 plus renovations to bring it up to a good rental standard $150,000 ...so capital invested $1,400,000 and let's say $950pw rental (6 weeks empty for renos and finding tenants) so gross income pa $43,700 = 3.12% gross return on $1,400,000 ....probably typical current Auckland figures.
Let's say you had a 50% deposit on the purchase price, so a deposit for $625,000 (but opportunity cost is a bank term deposit @ 4.2% pa with Rabodirect over 1 years pa = gross interest lost $26,250)
Mortgage of $775,000 @ 4.79pa interest cost = $37,122 interest costs)
Rates $2,950 pa Insurances $1,100 pa (manage the property yourself, so just your time)
Total cost per annum = Mortgage Interest $37,122 + Insurance $1.100 + Rates $2,950 = $41,172 costs plus opportunity cost of the term deposit $26,250 plus your own time for property management etc.
So if we compare the above costs with rental income $43,700 and no capital gains ? this shows me that I wouldn't dream of buying a rental property in Auckland , it's a NO brainer !!
Good luck mate ! ......you are TOTALLY relying on capital gains for any sort of profit ! .....and I didn't even mention the possibility of a capital loss !
So, Eco Bird you better hope those prices well and truly "sizzle" !
lol, you keep editing your comment RP haha, how am I to keep up haha?
so now you pick names to suit your narrative, Liam Dann's article in the Herald was supportive of JK's thoughts ... John Mauldin is certainly more inclined to doom and gloom and appeals to most chicken little DGM hallucinations here ...
Unlike yourself, I do not advise people what or not to do, I cast my view and sometimes what I intend to do ... which apparently annoys you very much ...lol
The people that have bought at auction may well have bought bargains.
The fact that there are many passed on doesn’t mean the market is not good. Just that people want more than what the buyers have got money to pay.
I love the auctions as that is where the good buys can be found.
RP, a bargain is when the no.s add up and you are buying at under true market value.
True market value is not just what a property sells for on the day at auction.
Personally have bought all our properties under their true value, but you need to be cashed up or access to funds and take up the opportunities that present.
Never been caught out yet, always a possibility, but then again I know what I am doing!
The Auckland market is different to mine because there clearly is a lot of property that people pay far too much
more.
I don’t know the Auckland property market at all, but I do know that I could make money on any market and any city.
TM2, are you Ron Fong? In case you hadn't noticed, this strategy has been abandoned by many since the market stopped rising. Although, Eco Bird is one Auckland based speculator who still believes nothing's changed.
If more believed the market held low risk value at current premiums, it would still be rising like 2015/16 and lenders wouldn't have tightened the taps.
TM2
Another day and another doozy of a stupid comment. You are so far out of your depth here and it can't be doing your self esteem any good at all. Why don't you try moving down a couple of leagues from 'Interest.co.nz' to 'STUFF'
After a few days I'm sure you will feel much better about yourself and on Stuff the market is still going up so it'll make you happier as well. Who knows, it might even help you rediscover punctuation and grammar.
Many overseas buyers buying before the ban is in place.
Check with any real estate agent in private and will vouch for it specially in Auckland as that is the way the property is promoted in China market - using deadline and rightly so for all overseas who are plainning to buy property in NZ.
It all depends how much time the government wants to give to overseas buyer to speculate/buy.
Wait and watch.
Because that's where the money is to buy over-priced crap boxes, particularly if those over-priced crap boxes will no longer be available to you - "CLOSING DOWN SALE, BUY NOW BEFORE IT"S TOO LATE, EVERYTHING MUST GO".
Little to no due diligence done, just a transfer of cash (and currently source of funding doesn't matter in real estate, unless the finance law that was covering them has passed).
Hi Rastus
It isn't locals rushing to buy... FHB lending died a death last month, they are smarter than we give them credit for, but if you just want out of a country for fear of your family being safe down the line then you just buy before you can't anymore... Are all the empty houses just bolt holds (insurance) for when /if the shit hits the fan.... And the sellers who are taking advantage of this window of opportunity will be 'smarter than the average bear' (pardon the double pun on bear)... but they will know that the game changes the minute the rules on foreign ownership change.... hence the stall at the beehive.. Those that know, are jumping out of the market and the delays have allowed this to happen. The mistake the government have made is that this should have gone through within weeks of the election and I don't mind saying that, that has highlighted a bit of inexperience.... You should never plan to do something and then give the markets leeway and too much notice. Gordon Brown announced that the UK was going to sell off its gold reserves years ago... What happened? the market for gold collapsed before he did it.. This is the opposite in that the fall comes when you remove demand. Politicians!
the market will evaporate but the desperate at the margin will keep playing it as long as they can.
NB.
(Thanks Custard, I enjoy using the phrase of the 'marginal buyer')
Have a read through some of the submissions made to the Overseas Amendment Bill. You can click on each submission and open up the document (full evidence text). There's a few funny ones.
https://www.parliament.nz/en/pb/bills-and-laws/bills-proposed-laws/docu…
Example:
Item of business :
Overseas Investment Amendment Bill
Submission name :
mr jiang zhu
my name is jiang zhu i object that. that will not good at the economic. thanks
https://www.parliament.nz/resource/en-NZ/52SCFE_EVI_75755_1009/586ffba2…
I'm still in the Bears camp as the math's does not stack without a massive wage and price spiral (perhaps one is starting). One notes that even the Bulls poster boy Mr Key is predicting difficult global economic times approaching citing issues in China (spluttering), US (massive deficit), and Europe (weaker than before). Could this be the "bull trap" that appears between the "Denial" and "Fear/Capitulation" on all the property bubble charts?
Additionally, can I ask if the usual Bulls on this blog are also buying up large...or not? Also if not...could they please comment why not?
Beautiful new Remuera Listing. CV is $5,500,000.
https://rwremuera.co.nz/auckland/remuera/7a-aldred-road-17587028/
And the rest Chairman, do you think the banks will be able to price the market without the foreign injection of cash setting the backstop? I don't think so, just watch how much tighter they get on their lending criteria and where 'they' feel comfortable lending against values. (30% less would be my guess). There's a big re-valuation project ahead for QV the minute the ban kicks in. Isn't it exciting!
Yes, if I was a rich mainlander and for that price bracket, I would seriously look at other cities like Melbourne, may be Sydney where they have better universities for my children, better business opportunities and better connections to the rest of the world. I hope Auckland hasn't price itself out of the market.
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