Bayleys' Auckland auction rooms had a cracker of a week with sales achieved on 62% of the properties offered.
Bayleys marketed 29 Auckland residential properties for sale by auction in the week to October 26 and sold 18 of them, one of the best results achieved for a while.
Prices started at $250,000 for a one bedroom apartment with a balcony in the Portland Tower on Queen Street. The apartment was under management contract to Quest and was one of several apartments sold at the auction.
The most expensive sale at Bayleys' Auckland auctions was a 338 square metre house on an 824 square metre section in Remuera that fetched $4.41 million.
Of the 15 properties that sold where their selling prices could be matched with their rating valuations, 10 sold for more than their RVs and five sold for less than their RVs.
Things were a bit quieter at Bayleys' auction rooms down the line during the week, with seven residential properties marketed for sale at the Hamilton auction but only one sold, while two of the eight properties offered at the Tauranga auction were sold.
Also in the Bay of Plenty, Eves Real estate in Tauranga had 16 residential properties for auction and sold exactly half of them, with a conditional contract signed on a ninth shortly afterwards.
Details and photos of all of the properties offered at both the Bayleys and Eves auctions, along with the selling prices and rating valuations for most of those that sold, are available on our Residential Auction Results page.
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57 Comments
Today's headline will send the Doom and Gloom Merchants into a tailspin......
Retired Poppy ("Crash Crusader") - what happened to the housing crash that you promised was going to happen before the end of 2017? And then by the end of 2018?
We would welcome some accountability from you. Are you capable of responding directly - and without becoming bombastic?
Let's wait and see.......
TTP
Agent TTP, again, some proof by way of the two links when I allegedly commented this would be nice.
I do recall commentator John Wheeler saying on several occasions that a housing crash is imminent. Perhaps TTP, fatigue has got the best of you and perhaps you think I'm him?
Assertions from the likes of yourself and BLSH there will never be another GFC2 is merely another reason why we should all be worried....
BLSH, maybe I am clueless on this but seeing that you've self anointed yourself ""The Oracle", you can now enlighten readers as to when GFC2 is coming and what will be the trigger/flash point. Something tells me you won't be able to offer any meaningful comment on this without some considerable ambiguous waffle.
Relying on the suckers who overpaid at today's or yesterday's auction is meaningless. Have a peep over the horizon and see what's heading our way....Unless you are totally out of touch me thinks you either have a ton of skin in the game or you are a paid poster of the undustry?
BLSH, as I have already had to reassure you to ad nauseum, I stand by my prediction and will still be here if my timing is proved wrong. If it transpires that your recovery by 2021 is proved wrong, will you change your monica to "Blow High Sell Low"? Several areas in Auckland have already dropped more than 5%. You conveniently choose to ignore that. As your friend TTP says "those who hesitate are lost" - so stop blowing and deleverage yourself while you've got the chance. Both yours and TTP's reassurances there won't be a GFC2 are laughable :)
Id say thats very likely true. Affordability is what stopped the gains. Affordability has improved but sentiment has changed so the market seems a bit stranded. No one wants to sell for a loss when they know property is scarce and no one wants to pay top dollar given how slow the market is.
An auction the other day in Greenlane got only a solitary bid for 1.7M. Seven days later sold for 2.225M.
Nothing new there Zach
My own property sold for 25% more than its highest bid at auction 2 weeks later & that was in Q3 2015 of market
You only need 1 buyer
However the Auckland property market as usual is proving fairly resilient so far
They’ll need to be some more significant financial pressures before there’s any serious declines
Sure there’s been a leveling off and declines in some parts of the market
Look at this cracker, sold for $2,050,000
-12.7 from RV and -23% down from "estimate"
https://www.trademe.co.nz/property/insights/address/Auckland/Saint-Mary…
Sold $650,000 RV $900,000
-27% from RV and 13.3% from "estimate"
https://www.trademe.co.nz/property/insights/address/Auckland/Cornwallis…
sold $2,400,000 RV 3,100,000
-22% from RV and -5.5 from "estimate"
https://www.trademe.co.nz/property/insights/address/Auckland/Point-Chev…
Just to show I'm not being too biased this house was reported by the NZ Herald as selling for 1.05M recently, 375k below RV. It actually sold for 1.08M. Never trust news reports! Still a bargain I think and the only example I have seen so far of a disturbingly lowish price. Still over a million for a two beddie though.
Good to see reference being made to RVs. While RVs are a crude and not overly reliable measure, this information does at least provide a more meaningful indication as to how the market and in particular the auction market is performing.
However the cynic in me wonders, while not all good news there is some positives, if this initiative is relief and a positive spin on the part of nervous REAs.
https://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=12149838
Most of those couples would never have been able to do this otherwise.... hopefully this will help many more
Peak hype?
https://www.oneroof.co.nz/news/35559/?ref=nzhhome
Just buy a house and it will earn you the average wage they said.
Instead you will be paying a weekly top up to the rent and also losing 1000's in equity.
Stats.. we had a net loss of 3k from Auckland, excluding immigration, which is also slowing...
https://i.stuff.co.nz/national/108033743/millennials-ditching-the-big-s…
The housing shortage is not as acute as claimed
Many speculators went wild and at times made money but all who bought on crazy price in in 2016 to 2017 are bound to make lose.
This house in 2015 sold for 805000 and in 2016 was sold again for 1240000 - 50 % profit in one year ((https://homes.co.nz/app/address/auckland/sunnyhills/65-meadway/DEqvw) and now again in 2017 is up for sale. Auction failed and now wants 1.3 million to get out without lose but the Question is will he : https://www.realestate.co.nz/3401540.
In this market if he gets near around 1.1 million will be a deal but again it is wait n watch.
It's an interesting one. I'd say it had a big renovation done just after it sold in 2015. That would account for the big price leap in 2016. Someone bought it to do up and sell on and got the timing right.
It is a full section. Looks like they are just trying to sell it and recoup any costs rather than make a profit. If you bought in 2016 that is probably a best case scenario for many properties. Why pay top dollar to only sell two years later though?
Edit:
Here's how it looked in 2015:
https://www.bayleys.co.nz/1610233
Rough diamond says the blurb. Nice job done by the renovators and a nice profit too?
And in 2016:
No they didn't stuart786786. Check my second link above from 2016. You will see it says sold. The photos prove the renovations were all done when they bought it. It is a bit confusing as the same agents that sold it in 2016 are selling it now but you can see that it says sold (top right of image), the reno appears to be all done and the staging is different.
Sorry to bust your narrative!
People are still exiting Akl as economic refugees from nine years of the last Govts policies. According sales in the likes of Tauranga, Hamilton, Cambridge are somewhat expected. Akl remains, like many citys, a victim of speculation in cheap cash foreign and domestic.
Still short on Akl. Headwinds continue to build.
I thought from the headline we might be getting some more indicative info to go on (re where the market could be heading).
But...is 18 sales in a week at Auction actually a cracker week?
I could understand if speculators were celebrating 62% sales on a high volume of auctions, but is 18 sales actually a lot? How does that compare to other weeks in overall volume? Seems like we're not getting enough info to establish much from this.
I recall we've also had 100% clearance rates on a few auctions recently, which was more impressive. (Sure, they were only two or three houses auctioned, but it's the rate that's important eh.)
Tales of the two (similar) cities:
https://www.barfoot.co.nz/763116
2.25M for that Greenlane home,
or this 2M in another city
I think as long as the Chinese banks don’t request their money back the Auckland housing market looks pretty safe. When GFC2 comes and it will I suggest Jacinda call John Key former NYFED board member & well regarded in banking etc to negotiate like he helped ASB ( an Aussie sub bank anyway ) secure overseas funds to get them through the world financial crisis.
The worst I could say about the current Auckland property market is it’s pealing off some of the profits which let’s face it if you failed to cash out is a dragging loss of profits. Strange I’m not hearing that familiar cry “I’m in property for the long term rah rah”
Property is no different to any other investment you try to buy in the lows & sell at the peaks
Holding property and watching your profits decline however slowly is a mistake
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