Auckland led the way at Bayley's latest residential property auctions, with things a bit quieter in the provinces.
The total number of homes being auctioned remains low, with Bayleys auctioning just 23 in the upper North Island last week, with sales achieved on nine giving an overall clearance rate of 39%.
Most of those sales were achieved at the Auckland auctions where 14 properties were marketed for sale and seven were sold, giving a 50% clearance rate.
At the Hamilton auction three properties were offered and one was sold, at the Rotorua auction one of the two properties scheduled for auction had its auction date postponed and the other was passed in, and in Tauranga one of the four properties Bayleys auctioned was sold.
Things were also a bit quieter at Eves' auction in Tauranga last week where 14 properties were marketed for sale by auction and sales were achieved on two.
At the Auckland auctions prices ranged from $950,000 for a newly completed terrace house in Mt Eden, to $2.075 million for a three bedroom bungalow on an 814 square metre section in Greenlane.
At the Tauranga auctions, prices started at $350,000 for a section at Pyes Pa to $1.087 million for a four bedroom house at Otumoetai.
Details of the individual properties offered and the prices achieved on those that sold are available on our Residential Auction Results page.
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110 Comments
Also the numbers reported don't tally.
To start 'there were 23 Auctions in the upper North Island.'
14 in Auckland
3 in Hamilton
1 in Rotorua (1 postponed)
4 in Tauranga
3 in Hamilton
14 at Eves.
Correct me if I'm wrong but that's 39 Auctions with 11 sales and a clearance rate of 28% overall.
Where the figures are still wrong
Okay so take out the shocking result of 2 out of 14 Eves Auctions and you have 25 Bayleys Auctions rather than 23? 36% overall rather than 39%?
A more honest headline is surely that of the 28% success rate of the total number of Auctions, particularly if they are referenced in the story?
Hi TTP
I've just worked it out.. Greg is just a bloody good chap who doesn't want to have 'the mass heart failure of the property speculators' on his conscience. He's obviously very concerned that many of those that have taken on the debt to compete with the foreigners are of an age where any sudden shock to perceived equity levels could cause a cardiac event, with arteries clogged up by too much debt.
That's why the headlines never match the reality... yesterday's was 'Blue skies and not too many clouds on the horizon for the property market this summer' (I'm guessing he didn't want the oldies fretting about the falling price headlines in the papers and spoiling their Sunday breakfast) and today's headline hides the reality that only 28% of Bayleys' Group Auctions sold last week.
I care a little less than Greg so would prefer a bit more of the truth and less of the flannel.
The headline isn't misleading or cherry picked in the slightest. Auckland is the country's largest city - it is perfectly reasonable to state its result separately (like every single report that provides sales data does), and then go on to accurately state that other centers were quieter.
Facts care not about your feelings or narrative, Nic 'blind squirrel' Johnson. You'll find that you spit the dummy less frequently if you accept this.
Did you know you can add a profile pic to your interest.co.nz account? I've found yours -
https://images.medicaldaily.com/sites/medicaldaily.com/files/styles/ful…
The joke was just in poor tast, that’s all. No pun intended. I’ve voted Labour evey election since I was old enough to vote, except last time, when I went NZ First. I’m no right winger. I’d call myself a libertarian.
Ever heard the saying “the truth hurts”? This is why your little jab doesn’t bother me. But what should bother you is the fact I have amassed more wealth in my 31 years on this earth than you likely will in your lifetime. Envy drives your Marxist aspirations, and realising your limited acumen in the real world, your only hope for equality is to bring the successful down to your level. You are a cuck, I truly believe that. It is going to be a long life of renting for you - one day I may be your landlord. Lol.
Because I've met my landlord, and his parents, and his brother. And they are all decent people. But judging by the typical angry right winger response (cuck, Marxist, and the apparent belief that I'll be impressed or intimidated by your claimed wealth) I think I've got you dead to rights.
It’s a picture of an infant that bears some emotive and perfectly timed characteristics that you also share with the picture.
I’m not sure what substance you’re referring to though, I was hinting at glue (PVA or well digested stick variety) but I’m a little concerned that your mind may have waltzed down a more sinister path and you’re trying to import those fantasies into my joke.
Better is a subjective measure. The fundamental tenet of my financial politics is that the more that someone keeps from the fruits of their labours the better, as long as those unable to fend for themselves are taken care of by the wider collective. I'm not sure where the Left would self limit themselves vis a vis taxation. I suspect there are none.
Of course it's subjective, but we seem to agree. Higher asset taxing would allow reduced income tax allowing hard workers to keep more of their income.
Perhaps you'd even join me on my lonely hill of being pro inheritance tax - perhaps the most outrageous and damaging type of unearned income.
What about thinking bigger and beyond yourself and your own children? Like if you were able to recognise yourself in others, then you'd realise this game of trying to beat each other is really just beating ourselves...'I'm doing this for my children'...but so is everyone else, so we're making life far more difficult for ourselves by competing instead of cooperating...just a thought. A generation that has everything, yet is completely overwhelmed by FOMO - and it's hard to tell why.
The problem is some get to keep all or most of their "un-earned" effectively un-taxed fruits V PAYE who pay the rump of taxes. So to have everyone pay the same % of tax for their income would to me anyway seem the fairest way.
Example, TOPs policy is quite clear, by taxing ppl not paying much tax then 80% of ppl actually paying tax would be significantly better off.
Incorrect IMHO. It is way more likely to be at worst NET zero as the houses in Q would then reverted to home ownership instead. In fact there is a suggestion that there is a decent % of houses on the market that are un-occupied being kept purely for capital gain in which case doing any action that makes such a stance less attractive would actually encourage sell ups and put more houses on the market.
If my "circle" and work is any indication a decent % own 1 or more rentals as a pension plan, ergo I dont think in this group to start with its a winner. The Q is then for generation "rent" whether they will wakeup to a land tax or a CGT as a way to make their home more affordable or will they want to make the same big tax free gains as they see others are making I suspect the latter will win, ie greed.
regards
The primary trend is captured in this sentence:
The total number of homes being auctioned remains low, with Bayleys auctioning just 23 in the upper North Island last week, with sales achieved on nine giving an overall clearance rate of 39%.
A total of 9 sales for the entire upper North Island, which happens to include Auckland, isn't much of an upward trend. The clear trend is that auctions are becoming a less than desirable sales method, hence the low numbers going to auction.
Auction clearance rates in Auckland are now commonly around 40-50% - and sometimes more than that.
Prior to June 2018, clearance rates at these levels were a rarity and - surprise, surprise - the DGM embraced the lower rates with unmitigated enthusiasm.
If the DGM dislike the re-emergence of higher auction clearance rates, then tough!
TTP
I cannot wait for the week where there is a single auction and... the one home sells. You will be touting the hugely increased auction clearance rate of 100%!
Focusing on a single variable when intelligent people use multiple variables to assess the best course of action is an easy method to lose money. Most optimistic assessment is that one may earn less money, but I'm more of the view that this type of single variable assessment aligns with the proverb that a fool and his money is soon parted.
There won’t be a Capital Gains tax out in place by either Government because it will be a death knell for them.
It is a stupid unfair tax that does not take into account a number of things.
It certain,y doesn’t restrain house prices as any tax imposed on anything only increases prices.
Labour campaigned on bringing in a CGT but it now looks unlikely.
Pike a River is another dropkick idea that is not going to come to fruition apart from the huge cost to the taxpayer and for what?
The only people that ever want additional taxes are people that the tax doesn’t affect!
Green with envy tax is the CGT and because most of the Labour Party aren’t successful financially they don’t see why others should be!
You really believe that their motivation is solely based on envy of what you and your kin folk have ?
"It is a stupid unfair tax that does not take into account a number of things.
It certain,y doesn’t restrain house prices as any tax imposed on anything only increases prices"
I dont think its fair that you accuse the Coalition of having a lack of business acumen with comments like this.
You are incorrect is assuming that those of us who want a change to a tax system won't be affected or don't own properties ourselves. Some of use can see the bias in the current system and the need to change it.
You don't want it to change because you don't want your tax protected rort of landlording to be affected...simple as that. Good on the COL. They are doing what they promised ...not can kicking denialists like mr key & co.
So there won't be a capital gains tax because the real estate owning voters won't like it, but then if we don't have a capital gains tax and we have boom/bust cycles and recessions caused by run-away housing prices which nobody likes, then we're 'mucked' either way. So is it better to be prudent and try to limit the fluctuations in property prices, or better to be wussy's that find themselves political slaves to property bulls?
If I was in power, I know which way I'd be swaying. No 'mucking' about for property bulls.
Property tax. Flat 1-2% of value per year (or start lower and ramp it up). No family home or other exceptions. Drop other taxes accordingly. Paying $15-30k a year to live in a $1.5million house will soon lead to that highly inflated house price dropping in value, and quickly reduce number of empty or underutilised houses in expensive urban areas owned by economically inactive people (that displace poorer productive people to distant suburbs placing greater stress on roads etc).
yes makes sense.
Note the family home was untouchable for Cullens working group. To get around it....if the family home is on average $600k, then to be fair to non home owners, the notional income of $600k of assets should be exempt for all @3.25% = $20k exemption.
Will he have the balls to suggest that?
That property tax would only make sense if we had an over supply of housing, which we do not. We have been under-building for a decade (thanks Auckland Council). As it stands a property tax would reduce the house price by increasing the cost of owning housing, but would also reduce the profitability of building houses. Making our shortfall of housing worse would make rents go up faster than the decline in property prices.
There won’t be an Income Tax out in place by either Government because it will be a death knell for them. It is a stupid unfair tax that does not take into account a number of things.
Just as valid.
All the resorting to "envy, envy!" is just as robust as the previous resorting to "racist, racist!" in any discussion of immigration volumes, foreign buyer activity etc. I.e. silly bollocks.
Wonder when doing analysis, how come so called experts do not take foreign ban policy into consideration (opprtunity provided by government to buy) as it is obvious that many non residents who have to and were plaining are rushing to buy unless foreign buyer were a myth.
That home in Otumoetai was immaculate. The buyer got a great deal. There's a house not far from there that sold for $785K earlier this year, it has been relisted, failed to draw any interest for an auction and is now back on the market for $795K. Take out sellers fees and it will sell at a loss. Looks like it's going backwards in $10 Tauranga.
Any Capital Gains Tax now would be a total waste of time.
It won’t come in and even if it did, it wouldn’t be retrospective.
Every property would need to be valued and any gains from then would be taxed.
You would be able to claim back any costs incurred on the house etc.
You would get the home valued high and so it would be an absolute waste of effort apart from the fact that the Govt. That brings it in will be gone!!
Looks like DGZ's prediction is coming true, this Auction sale was almost 50% down from 2016...
47 Toroa Street, Torbay
https://www.trademe.co.nz/property/insights/address/Auckland/Torbay/Tor…
Funnily enough its an "Entry Level" purchase at 1.1 mil.
Because its worth repeating to highlight how soft the Auckland market is before the ban
'Barfoot & Thompson Figures.
March 1689 new listings, 1064 sales
April 1358 new listings, 731 sales
May 1455 new listings, 1027 sales
June 1210 new listings, 903 sales
July 1057 new listings, 830 sales
August 1331 new listings, 795 sales.
In essence 1/3 of the 8100 listings have failed to sell since March with a sales to instructions ratio running at 66%, which was just 59% during August. Its just a metric but if you have an understanding about the real estate industry a ratio below 80% is not a sign of a strong market and signifies a need to address pricing.
Stock levels for barfoot have hovered in the early 4000's for most of the year so currently 1/3 of sellers are failing to sell.'
And when the analysis was continued by 'Cowpat' the numbers highlighted an almost 40% withdrawal rate (failure rate of all listings) from Barfoot since Dec 31st 2017.
Except when a property is listed by multiple agencies (a general listing as opposed to an exclusive listing), but can only be sold by one. Unless things have changed, this happens, it certainly happens with commercial and industrial properties, look in a few vacant shop windows and you'll see multiple RE agency signs with phone numbers, and it definitely used to happen with residential, I have no reason to believe it doesn't still happen.
Just as we have had with the mortgage priority data, homes.co.nz updated sales and the Torbay misstep above, you would do well to talk to someone in the industry to confirm your assumptions as to assume makes an ass out of u and me. Otherwise you will owe David Chaston a slice of your uneaten humble pie.
Hi Ex Expat.
I am yet to see a challenge from Mr Chaston about my numbers, other than a few percentages that were thrown back without any actual information about where they were derived. I did ask where his calculations had come from, but I am yet to hear back.
If such a challenge is presented publicly, I will assess it and if there is merit to concede, I will, but I don't think there will be a challenge as the numbers I've offered make too much sense to challenge, so in the meantime the numbers from B & T themselves are the numbers and 40% of their Auckland sellers this year have not received the price that they were wanting to sell. It's classic 'Denial' phase at the start of a bear market.
The trick is to never plan your future on what you want for your house... Plan it on what you can get, ( I run on what I paid for mine in 2002 - it should be safe to assume I'd get more than 15 years ago and it was cash after all) and don't be silly enough to think that the last few years were anything other than NZ being pumped and dumped by the Chinese, who dareisay love a gamble and have been given access to far too much credit to gamble with. I'm genuinely sorry to hear about your redundancy as well.
Nic
Don't let the truth get in the way of a good story. I checked homes.co.nz. There is no sale price listed for June 2016. Care to guess why? No? I'll save you the leg work.
June 16 was a S13 sale i.e. Freehold, Non-arm's length and can never match the property Capital Value.
Going back to the 2011 sale and comparing to the sale last week, the property is 100% up since the last market sale and sold at 103% of the 2017 CV. Move on, nothing to see. This was an entirely normal expected transaction result.
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