Real estate auction rooms were reasonably busy last week, in spite of the easing in sales that's starting to appear in some parts of the country.
The overall sales rate was 40% at the auctions monitored by interest.co.nz.
Interest.co.nz monitored 336 residential property auctions around the country between February 25 and March 3 and of those, sales were achieved on 135, with most being sold under the hammer but some were also sold prior to the auction or in negotiations immediately afterwards.
The rest were mostly passed in for sale by negotiation, which would also make them available to conditional buyers, while a few were withdrawn from the market or had their auction date postponed.
Most of the auctions monitored were in Auckland, the Bay of Plenty and Christchurch, and the highest sales rate was in Christchurch where 55% of the properties were sold, followed by Auckland on 40% and the Bay of Plenty on 28%.
Selling prices were able to be matched up with rating valuations (RVs) for 112 of the properties that sold and of those, 61 sold for more than their RVs, 49 sold for less and two sold for the same as their RVs.
In Auckland, selling prices were able to be matched with RVs on 80 properties, with 41 selling for more than their RVs, 38 sold for less and one sold for the same amount as its RV.
The full results with details of the individual properties offered are available on our Residential Auction Results page.
Investors interested in commercial property should check out our Commercial Property Sales page.
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67 Comments
Clearly the market is taking off. :P Or maybe just an oscillation.
I'm convinced. I've just put down a deposit for a $300,000 "three beddy" in Dannevirke. Yes it sucks spending an hour each way commuting to the big smoke of Palmerston North. Yes it has no insulation. And yes my neighbours are on meth. But I need to consider my future and my family. I'm finally on the property ladder and will be able to flip this for a cool million in 2030.
And by instagram standards you're now a #investor and #entrepreneur.
Congrats mate. Enjoy those likes.
saving4AUhouse,
Hang on. Just a couple of days ago you were telling people that they should be buying in Aus,not NZ. What happened? I think you meant 2130. nevertheless,good luck.
Your sarcasm detector might need a service. :)
End times are here... Repent (aka fire sale) and ye shall be saved.
BEEN SAYING THAT FOR YEARS AND ITS NOT GONNA HAPPEN THE END OF DAYS IS FICTION NOT FACT
Tell that to Sydney, Melbourne, Ireland, Spain and Patagonia.
40% is party time.
If it moves up from here in next few weeks can say that market has stabilized but if it falls now, will be bad so Wait and watch (Unless one week perfomace is party time).
Sales will keep picking up in March, they always do, then they fall off in April - May
DGM birdies have clearly had their feathers ruffled today.
TTP
40% is described as "rock bottom" in Australia. It's still in the doldrums.
https://www.businessinsider.com.au/australia-property-market-auction-cl…
Yeah, nah. Will take more than one week with improving clearance rates to convince us that the market is strong and healthy. REINZ figures next week, lets see which way the HPI is going for Auckland.
One weeks auctions not gonna make you flip flop like some others on here?
Sure... once it hits 90% clearance rate. :)
.
And for the top end in Tauranga (aka Gold Coast wannbe)
https://www.stuff.co.nz/life-style/homed/latest/111094662/rockstar-phil…
Wow Way below CV !!
Chairman Moa,
I live at the Mount and I don't know anyone who wants us to end up looking like the Gold Coast. Rudd's house has a great view of the Mount,but there's no beach and in summer,that area is regularly covered with rotting weed-and it smells. I would not want to live there.
For aus market 55% is doom and gloom, in nz 55% - "things are looking up". I'm confused.
Just sit back and enjoy the ride, intelligence ain't all it's cracked up to be.
The glass is either half full or half empty. It's still same amount of liquid no matter how you spin it!
Engineers Perspective..
During working hours: The vessel is not optimally sized and there is significant material wastage.
After hours: Some bugger stole half my beer.
Just checked trademe Hamilton. For sale has jumped to 930. This is up from 599 in 2017 and 700 ish 2018.
The new build suburbs have a ton of half built stock, with many having no obvious build activity for weeks.
There is plenty of infill going on, numerous sections where one house ripped out and 4 units going up. We also have all the surrounding commute areas like Te Awamutu, Morrinsville,, Huntly, Ngrawahia, Cambridge etc doing same. Gotta have rocks in your head to buy a house in the Waikato at present...bargains await....
we have houses for Africa.
Hamilton.. Yeah nah..
Reports of the Auckland property market's demise were clearly exaggerated.
The first stage of grief - denial.
You're quite behind. BLSH is already at anger ("you lusting doom and gloomers!") while TTP is at bargaining ("this suburb is doing really well!").
Depression is next, and I want to let you know I'm here for each and every one of you - we can discuss Australian properties together. At that point you'll have progressed to where I have been for the past two years - acceptance.
Thanks saving4AUhouse, just taking it one day at a time. Feeling good today.
Glad to hear, keep taking regular medo does help masking out reality.
Hi saving4AUhouse,
Just to set the record straight, you have misquoted me in your post above.
Notably, misquoting is a common ploy of the DGM........
But their desperation should not lead to dishonesty!
TTP
hmmm... not sure reports have been exaggerated. In fact i think real reports could be much more brutal.
e.g. Barfoot auctions yesterday for the Bays area saw 3 out of 20 sell under the hammer. That's a 15% success rate and March is typically the highest month for sales.
These numbers are terrible.
People can deny the reality if they want but it's not going to save them if they're over-leveraged.
Looks like they managed to coax another punter to crack open the wallet in post auction negotiations, still only
4 out of 20, with two not yet updated on the website. Once again, Highbrook did well, almost 50% clearance at an Auction with good volume (38 offered)
Pukekohe..not so good.. not a single sale on the webpage yet, from 9 auctions.
I predict an Auckland clearance rate in the mid 30 range next week. Tomorrows shortland street auction which is all West Auckland stuff will sell okay since it's mostly lower priced
Early spring!!!
Incorrect, my friend.....
It's only early autumn.
TTP
Winter is coming!!!!
15 April GOT season 8... I cannot wait.
Me neither (although it'll be the 16th when we get it). I wish GRRM would hurry up with WoW though.
Unless you got SoHo or PirateBay:)
"In Auckland, selling prices were able to be matched with RVs on 80 properties, with 41 selling for more than their RVs, 38 sold for less and one sold for the same amount as its RV."
That 38 selling for less is a telling sign. last year you would not have any percentage that high.
Yes and some in the more expensive areas are selling for a lot less, check out the auction results for 19A Tuhimata Street, St Heliers, That's dropped by -$485k from it's RV.
It's Rating Valuation: (July '17) $2,275,000 sold for $1,790,000.
It's going to get increasingly difficult for people to sell well above the million mark.
Sold for $1,100,000 in 2011 so up 62% in 8 years. Cross lease with its neighbour 19B where the CV is $1,800,000. The land size is the difference but as we know with cross lease it's about the area for sole use that gives the value. It may have a shared driveway.
The $690k sale gain less the $485k loss from RV gives a net gain of $205k so only a 19% increase over 8 years. Given 2% inflation the property barely broke even. Factor in holding costs and this was a big loss for the seller.
After careful consideration, I don't think you are from this planet.
"After careful consideration, I don't think you are from this planet."
Inability to discern sarcasm is a sign you are on the spectrum Nymad. Get some professional help and try and find a friend to socialise with; your life will be better.
Using autism as an insult is unbecoming unless you're a child of a very low socioeconomic status.
Poor people get a pass! I'll take it.
You can even get a private valuation, pump it up 2-300K from its true value (say CV). So whoever bought it can feel pretty good that they have a bargain!
Yep, already spoke to the valuer I use to avoid paying depreciation recovery income and he said juice ups of up to 30% won't be a problem. Post your email if you want his details.
Any chance you are paying him by bitcoin and you found him at Albert street food alley? Check which eBay store he bought his licence from.
So you are basically treating CV as an accurate reflection of value? If so, the try fit this St Heliers sale in late January into the theory https://homes.co.nz/address/auckland/st-heliers/72-melanesia-road/Rgll1
CV $1,975,000. Sale Price $2,250,000. So 114% of 2017 CV. + 7% since purchase in 2016. No subdivision potential.
Current number of properties for sale in Sydney (population >5 million) is 35,000. The number of properties for sale in NZ (population 4.7 million) is 37,000. And we're supposed to believe there is a shortage of housing in NZ, while Sydney suffers through record levels of "excess inventory". Pull the other one.
ChCh auction sale rate under the hammer 55%, which is showing that the CHCh market is pretty good!
Bought one at auction today that will gve us a pretty god return and will be extremely easy to rent in a great location and good size.
People who take action rather than just complaining will always be more financial!
Opportunities always exist it is a matter of whether you are a doer or a gunner!
Until the skinheads move in next door and the value will be rocketing!
only 2 of 13 sold today at Harcourt auctions in chch. which one was you?
Chairman, you are clearly rascist by the continuation of this skinhead BS!
Haven’t seen skinheads in ChCh for many years although I am sure there probably will be some somewhere!
ChCh population continues to grow along with the ChCh rebuild
Very exciting times for people in ChCh.
Well first hand experience; a group of them told me to go home (and something along the line of "Fluctuation") when I was in CHCH late last year, location : Pack'n'Save, Moorhouse Ave.
May be you should venture out and down the hill a bit more from your Cashmere gated home.
Don’t frequent Morehouse Ave Shopping Chairman!
One experience and you think full of Skinheads?
Go to Auckland and see what you live with!
Dude, I lived in Auckland for 12 years and worked at South Auckland for 6 years, Henderson for 2 years...
In South Auckland, they will tell go to go home by bus 'cos we pinched your car bro'
Mate everyone knows the racism in Chch... brown people avoid that shithole like the plaugue.
Most white people avoid that shithole like the plague as well :D Good to see you back btw.
What's crime like in Perth? I still can't decide between Perth, Adelaide and Brisbane (Melbourne or Sydney are beyond my budget). Is it any worse than Auckland or Wellington? I know there are police statistics but they only work if police respond to crimes - which IME they often don't.
saving4AUhouse,
Hang on. You have just posted that you have put down a deposit on a $300,000 house in Dannevirke for your family's sake. Now you are trying to tell us that you are still thinking of buying in Aus. It doesn't add up. There is no shame in only being able to afford a poor property in rural NZ,but there's no way you could then afford a property in another country.You should get your story straight before your next post.
Your sarcasm filter still needs servicing.
At this point I like to think he's playing along :D
Unless he's genuinely unaware that $300,000 would get you something decent in Adelaide.
I wouldn't want to head over to Perth atm, jobs prospect is a bit dicey. Adelaide is a bit better, very nice city but it gets extreme weather events.
I'm in Brisbane and it's refreshing change from Auckland, same salary, houses are way cheaper, brilliant public transport, city is much safer than Auckland city. You can buy a decent home here within 10km of the city (some with a pool) for less than what you would have to pay for a townhouse in Manukau!
Hi Chairman Moa and Saving4ahouse- agree with what Chairman is saying, but if you are mining related (ie construction, trades, blue or white collar) the job market is about to explode (this is what is being said to me from recruitment agents)- $85 Billion that has been greenlighted for development and construction in the mining sector... and the good thing is there are not enough workers here! The money is increasing also, although I wouldn't expect it to reach the levels of 2010... I love it here. Weather is amazing, my grocery costs for 1 week (2 adults 3 kiddies) is $250... and its lots of healthy veges (same to buy in Taranaki, cost me $450...) Pertol $40 per week. HOUSES BRAND NEW (4 AND 2) IS $300K!!!!!!! Best of all, as a solicitor in NZ, I made $85k per year. I am currently looking at a FIFO (fly in fly out from Perth) role to a mine site. They will be paying me as a Contracts Specialist (way less responsibility than a lawyer) just under $200k per yer plus 9.5% into my super!!! THATS why people need to go to Australia... you make double the wages, but the costs are half. I know people from the UK/Ireland that were begging to get into Aust, and paid approx $60k to get here... its like winning lotto being here.... and we have a free card!
That 38 selling for less (than 2017 RV) is a telling sign. last year you would not have any percentage that high. Trapped Millennial
When I was comparing sales prices to RVs early last year I would write down the numbers above and below RV. I kept my notebook from Feb 18 - April 18 and it shows these numbers:
15 above, 18 below, 1 same
19 above, 13 below, 1 same
8 above, 11 below, 1 same
4 above, 1 under, 1 same
24 above, 14 under, 1 same
8 above, 11 under
43 above, 29 under, 1 same
27 above, 19 under, 1 same
18 above, 20 under
So it looks about the same. You may be remembering back to before the 2017 RVs came out.
He wasn't remembering shit... He was just making it up.
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