OneRoof Northland Property Report - June 2023

TheBayleys Whangarei team understand howtoachieve apremium result foryour property in all markets using extensiveindustry knowledge and comprehensive marketing packages individually cateredtoyour property

BAYLEYSNORTHLAND

RESIDENTIAL REVIEW JUNE2023

Welcomeback to buyers!Junehasseen asenseofurgencyreturn to themarket,withbuyers connectingwith propertiesandactingquicklyanddecisively to secure theirdreamhomes. Auctions remain keyinattractingcash buyers,withthreepropertiesacceptingpre-auctionoffersandmovingtheirsaledatesforward. Theiconicheritage home at 7TuataraDrive in Kamosoldunderthehammerafter11days onthemarket.565 Rockell Roadin Whananaki went to auctionafter15days onthemarket,withthreebuyers competingfiercely—theone-bedroombachsold for $1,425,000,a $175,000increaseontheopeningbid.Finally,59Mains Avenuein Kensington wasmovedforwardand sold to thrilledbuyers.

Whileit’s truethat,ingeneral,propertiesare spendingmoretimeonthemarket,thereare exceptions. Thekey to success isfindingtheright combinationofproperty,agentandmarketing. Theagents at BayleysWhangareiare the expertsatfindingtherightbuyer foryourproperty by usingourinternational,nationalandlocalnetworks. You can feelassuredthatwhether yourpropertyspends tendays or tenweeksonthemarket,ouragentswillprovide exceptionalserviceand communication to deliver exceptional results.

RachaelDennis 021916 723| rachael.dennis@bayleys.co.nz

Whananaki 565 Rockell Road Kauri 33DalkeithDrive

Kensington 59 Mains Avenue

Parahaki 28 PanoramaDrive

Boundarylinesareindicativeonly

BAYLEYSMIDNORTHRESIDENTIALSALESLEADER,RACHAELDENNIS,REVIEWSTHE WHANGAREIRESIDENTIALMARKET.

MACKYS REALESTATE LTD, BAYLEYS,LICENSEDUNDER THEREA ACT2008

GREG ALEXANDER, HEAD OF ONEROOF, NORTHLAND

OneRoof Northland Property Report June 2023

Earlier this week we published our National OneRoof Report. The report reflects the market in positive sentiment with more buyers now thinking it’s a good time to buy... there are many factors supporting this view – see Tony Alexander’s story from the national report on this page. The OneRoof national report also features a comprehensive helpful guide to selling, the full report can be viewed online at oneroof.co.nz.

Our Northland local edition will take a more in depth look at what’s happening in our region. Northland is one of the largest housing markets in New Zealand covering three local authorities and 179 suburbs. We’ve asked our three districts’ mayors: Vince Cocurullo, Whangarei; Craig Jepsen, Kaipara; and Moko Tepania,

The housing market rebound is closer than you think

Far North, to share insights about their district and why we have so much to offer locals and visitors alike.

Thinking of buying or selling or just curious what’s happening?

We’ve summarised a few Northland highlights in comparison to the rest of the country on page 4 makes good reading.

Also, Northland leading real estate experts’ part their market insights from the last quarter.

OneRoof.co.nz is a dedicated real estate platform – housing the latest property news & market insights, plus advice to make your property decisions easier. OneRoof makes your search simple with thousands of listings right across the country.

We hope you find this OneRoof report insightful and helpful.

Power still lies with buyers for now but FOMO is on the rise again, writes

TONY ALEXANDER

The Reserve Bank of New Zealand has signalled that it is now done raising the Official Cash Tate, following last week’s 0.25 percentage lift to 5.5%. It doesn’t expect to start cutting the rate until late-2024 but there is a reasonable chance it will start before that – maybe early next year. But that is a long way from now and anyone holding off buying because they think house prices won’t start rising until interest rates start solidly falling, had best think again.

I have in hand most responses in my monthly survey of real estate agents throughout the country undertaken with the Real Estate Institute of New Zealand. Here are some of the preliminary results which gel strongly with the view that the market has probably reached a bottom and the move upward may be closer than many are thinking.

First, we need to note that there is as yet no sign that prices are on average rising. A net 31% of agents still see them as falling in their area. And when I ask them what buyers are most concerned about, after high interest rates and access to finance, 49% say worries that prices will fall.

FOOP – fear of over-paying - is 49% and that is the least weak reading since January last year’s 22%. The reading a month ago was 68%. So, fears of price falls are still there in the minds of buyers. But their fears are easing off FOMO – fear of missing out – has now risen for four months in a row. But at 9% we cannot say buyers feel they need to be in a hurry. In fact, one of my readings shows that we are still very firmly in a buyer’s market.

Again, we can see that first home buyers have essentially decided that the time is right to make a purchase. Listings are good, interest rates have hit their peaks, vendors are willing to accept conditions, and there remain few investors to compete against. A net 54% of agents say that they are seeing more first home buyers. Last month this reading was 22%, January it was -3%, and the latest number is the strongest since October 2021.

Presumably it is the young buyers who are getting to the open homes. An et 30% of agents say that despite the approach of winter they are seeing more people attending open homes. Last month only a net 3% said this and the latest result is the strongest since 43% in February 2021. The peak was 64% in January 2021.

Other numbers from my survey suggest auctions are close to seeing higher attendances, net selling intentions of investors are easing, and only a small number of extra investors are showing themselves to be motivated by hopes of finding a bargain.

Base Residential Conveyancing

Backing up one of the defining characteristics of this period of economic challenge which we are traversing is a still strong reading for people’s feelings of job security. On average since I started the survey in May 2020 15% of agents have said that buyers are worried about their employment. The reading back then was 48% which fell to 45% in June 2020 and hit a low of 4% in the middle of 2021.

The latest reading is 13% and that is largely what the result for this issue has been since November last year. It may well be that the Reserve Bank’s talk of recession at the end of November last year scared many people. But evidence on the ground is that job numbers continued to rise through the most recent December and March quarters, and people feel that the weekly pay cheque will continue to arrive.

In summary, the survey’s results tell us at a minimum that the market is bottoming and that this is being driven by first home buyers.

■ Agents have reported an uptick in attendance at open homes and auctions. Photo / Ellen Taylor

• Tony Alexander is an independent economics commentator. Additional commentary from him can be found at www.tonyalexander.nz

TheNorthland Market

HOUSE SALE PROFITS

Find2,059Northlandlistings currently forsaleonOneRoof.co.nz

NORTHLAND

✓ 2ndtop regioninNZfor resalegain

✓ 5%abovenationalaverage medianprofit

✓ Averagesalepriceincreased 0.34%inthelastquarter

✓ FarNorthDistrict averagesaleprice increased2.12%inthelastquarter

HOWMUCHMONEYHAVESELLERSMADEIN2023?

OneRoofanditsdatapartner Valocityanalysedallthe residential resalesbetween 2018and Q1 2023,andidentifiedwhichonessold fora profitandwhichonessold fora loss.

The five-yearperiodwas chosenasitcoversthetailendofthehousing market’s most recent cycle, andshowstheimpactofthe post-Covidboomanddownturn.

Allprofitandloss figures were on-paper only,anddidnottake intoaccounttheamountof moneyvendorsspentupgrading ormaintainingtheir property,orhow much theyowedtothe bank.

Profitwasdefinedassellingmorethanthepreviouspurchaseprice,whilelosswasdefinedas selling forlessthanthepreviouspurchaseprice.

Ofthe304,079settled resalesanalysed,296,496(97%)made aprofit. Resalegains forthe periodanalysedtotalled$102.9 billion,whilelossestotalled$534million.

ThemapshowsforQ12023 foreachregionthemediangrossprofitandthepercentageof resalesthatturned aprofit.

At thetop of theirgame

Jason Barrell: Barfoot& ThompsonWhangarei No.1 Salesperson 2022/2023 Dalton: Barfoot & Bream No.1 Salesperson 2022/2023

Andy Dalton: Barffoot & Thompson B Bream Bay No.1 Salesperson 2022/2023

Rugbyisa teamgame,withindividualsplaying differentrolesbringingdifferentskillsetsandhaving differentresponsibilities.It’snot by chanceNew Zealandhasthe world’sgreatestplayersandteams consistentlybeingthebest.

It wouldalso comeasnosurprisethattheleading agentsat Barfoot& Thompson BreamBayand Whangarei’shavebothhad successfulrugbycareers. Thelessonslearnton and offthefield,andtheskills requiredtobesuccessfulinrugbyequallyapplyto beingsuccessfulinthe realestate industry…

•Leadership •Teamwork •Communication

•Planning •Strategy• Tenacity •Integrity SuccessfulagentslikeAndyand Jasonarethefirst tosaytheirsuccessisnottheir owndoing,butthat of abigteam of expertsbehindthem,and youhaveto agree.

Barfoot& Thompsonnowhaveover80branchesand 1,800+salespeopleacross Aucklandand Northland, andareindustryleadersin New Zealand’slargest market,Auckland.

SteveSharp, Branch Manager of Barfoot& Thompson Bream Bay& WhangareisaysAndyand Jasonpersonifywhytopsportspeoplemakegreat salespeople.Their competitivenature,goal-oriented mindset, resilience,determination,discipline,and abilitytoperformunderpressure,createsgreat outcomes fortheirclients.That experiencein highly competitiveenvironments,settingandpursuinggoals, copingwithsetbacks,and workingdiligentlytranslates wellintosales.Theirperformanceunderpressure, self-motivation,andgrowthmindsetenablethemto adapt,learnnewstrategies,and excel inhigh-stakes situations.

These resultsattesttothisand Iamdelightedtheyare on my team.

JASON BARRELL •Northland •Chiefs •Blues •Llanelli (Wales)

ALL OVER OV YOUR

Thereisactivity in the market, as buyers return and salesnumbers increase 20% compared to April.

Open homenumbers areincreasing, and buyers areacting quickly to secureproperty.The Bayleys Whangarei office has brought forwardthree auctions recently,with vendorsaccepting pre-auction offers. This desiretobefirstinisreflected in the decreasing days on the market. Maysaw properties in Whangarei spend amedian of 42 days on the market, 17 days lessthanApril, andthree days lessthanMay 2022.

This pastweek we launched 24 Waimahanga Road in Onerahi to market. We’d taken additional timetoroll up our sleevesand help thevendors preparethe property; the results speak forthemselves. Thefirstweek saw17inspections acrosstwo open homes and twoprivateviewings, in addition to almost3000 views of the property online,proving thatour levelofmarketing and attention to detail can impact and influence buyers’ interest.

Thank youfor helping us to support and promotewomen’sand girls’rugbyinour community; we’vebeen running our Bayleys sausage sizzle at Pohe Island throughout the girls Rippa Rugbytournament and thanks to your purchases (and hunger), we raised $986 forthe OBM Girls Rippa Rugbyand OBM Sirens!

NORTHLAND

$871,000 0.34%

ABOUTTHE TABLES

THEONEROOF-VALOCITYHOUSE VALUEINDEX TheOneRoof-ValocityHouse ValueIndex tracks theaverage valueofNew Zealandresidential andlifestyle properties at asuburb,territorial authority, regional andnationwidelevel. Theindex is designedtobeabletoestimatedollarvalues, movements, andindexation. Theindex is designedtobeable to usearange of sources ofproperty andsales data,ensuringthatestimates providedare abletotakeintoaccountthe most recentinformation. Theresults arebased on acomposite of statistical models andare fullystratified. The figuresin thetableshowfor eachsuburb theaverage property valueatthe endof May 2023, plus thethree-month and12-month change. Also givefor eachsuburb aretwostats that measurethe impact of thedownturn: thepropertyvalue peakand the valuepre-Covid(March 2020). Thesetwo figures, plus the$ changesonthe currentaverage property value,show the strength of valuesin thesuburb.Datafor thetables arederivedfromthe OneRoof-ValocityHouse ValueIndex,taken on May 20,2023.Onlysuburbs with10-plussettledsales during the12-monthstothe endof May 2023 areshown.

Daysonmarket: whytheymatter

Chips,bread,data,news,sooneror later,theyall getstale.Thesame can besaidofproperties forsale.When you’re tryingtosell,stale is onething youdon’t want yourlistingtobecome.

Whilethere’sno hard-and-fast rule forwhen alistingbecomesstale,thenumberofdays on market(DOM)is akey metricthattellsbuyers howlongyourhomehasbeen forsale.DOM is animportantmetric forbuyersandsellers,but thestakesarefarhigher forsellers,as we seea stronginversecorrelationbetweenthe DOM andtheproperty’s ultimatesaleprice.Properties typically generatethemost interestwhenthey arenew tothemarket,and generally thelonger ahomeisonthemarket,themorelikelyitisto sellforundertheaskingprice.

As NewZealand’sOfficialCash Rate rose overthepast twoyears,the realestatemarket cooledwithpropertiestakinglongertosell.The absenceofcompetitionallowsbuyersmoretime toconductduediligence, thoroughlyinvestigate alloptions,negotiate adealmoresuitedtotheir terms,andseekout a‘bargainbuy’.

Whilethetime yourproperty is on the market canbeasuniqueas yourhomeitself, ourdatashowsengagingin awellplanned auctioncampaign canimprovethesalestimeline by bringingthemaximumnumberofbuyers togetherto achievethebestprice.Inanauction situation,buyersareprovidedwith adeadline

toparticipateinthesalesprocess,andtheseller gets aclearanswerastotruemarketvalue auctionday.

Withtheelementofcompetition,anda looming auction deadline,propertieslisted sale by auctiontendtosellquicker thanothersale methods.(Our clearance forauctionsarecurrentlyalsothree-times higherthanpropertiestakentom methods)

InMay2023, RayWhite Whangarei& Tutukaka’s mediandays tosellresidentialhomes overallwas28days,and21days fo properties -farlessthanthe REIN Districtmedian forMay of45da allsalesinour area.

In avolatileand uncertainmarket,auctions arevaluableinsecuringour vendorsthebest pricepossibleand reducingdays on Thesettimeframekeeps yourlistingfreshand allowsustouse marketdemandtohelp apremiumprice.This iswhyourteamis trainedinauctions. Sell faster by property well,pricing right,and wo topagentwith aclearstrategyandexperiencein themarket.

■ 29GeorgiaLane

Listed by RayWhiteW Warrick Harkness recently for$1,107,500after receiving multiplebids.

WhangareiDistrict

Planning forfuturegrowth

Whangareihasoneofthefastest growing populationsin NewZealand,andwhile growth is generallyagreedtobeagood thing,italso brings plentyofchallenges.

Managingmanyofthose challenges on behalfofdifferentcommunities,businesses, industries,visitors,and residentsfallsto Councils -likeours.

Housinghas neverbeen acorefunctionfor Councils,butasthenation’s housingcrisis hasgrownthere has beenastrongercallfrom thecommunityfor Councilto play arolein improvements.

TheWhangareiDistrict produced agrowth strategyin2021,whichreplacedthe earlier 2010document,andisavailable online (www.wdc.govt.nz/GrowthStrategy)andit has averyclearexplanationof whatisgoingto happenpopulation-wise(amongotherthings) inourDistrict overthenext30 years.

Itidentifiesdriversformanagingand adaptingtogrowth.Itsays howwewouldlike the Districttogrow, whatweneedto work on and who we needto work with.

Oneofthedownsidesofplanning for growth,ispopulationexplosion,which generally meanspeoplelikewhat we aredoing inourDistrict andare movinghere, so we needto move fasttokeepahead. Iencourage anyonewithaninteresttohavea read ofthis strategy.

Growth

Whangāreiis alreadyat apopulation 105,000.Thestrategyshows we areexpected to grow toabout115,000peopleby2031, yet going by current growthstatisticsthiscould bemorelike129,000.

Thepopulationgrewfrom70,000in2000, to98,300,in 2020.Thehighest ratesof populationgrowthhaveoccurred inthelast 5of those years,withanincreaseof 11,100

people,averaging2.5% peryear.

To meet thisdemand,overthenext30 years we willneedtoproduce,asa district,20,00050,000 newhomesand 520-1000hectaresof businessland. With yourhelp we canprovide enoughlandandinfrastructuretomeetthis need acrossoururbanareasand keygrowth nodes.

OurCouncil alsoneedstoensureour infrastructure, facilities and services can catertoourfast-growing Districtand meettheneedsof agrowingpopulation ofolder residents.Thestrategicissuesand opportunitiesthatthe Growth Strategy identifiesareofrealimportancetoour local hapū and when wework together, we must ensurethatour responsetothestrategicissues areappropriate.

Housing remains achallenge Asinthe restof NewZealand,housingisa keyissuein Whangarei.

Whangāreihasseen adramaticincreasein house pricesand rents,as well as aboomin thenumber of housesbeingbuilt. We dohave enoughlandandinfrastructuretomeetfuture demand fornew houses.

BeyondCouncil’s planningand regulatory functions,mostkey housingdecisionsare made by central government.

OurCouncil recognisesithasanimportant roletoplaybyworkinginpartnershipwith otheragencies and advocatingforhousing investmentinWhangārei.

Infrastructure

AstheDistrict’s populationincreases, we wanttomaintain thecurrentlevels of service acrossallour keyinfrastructure.We arealreadyon recordthat we want toboost funding fortransportation,especially after thispaststorm-filled year.

Whangareiisinvestingnewandbetterways to getaroundthe district,including cycleways, sharedpaths,andbuslanes,allinaviewof creating betterconnectivity.

We areworking withourlocal communities tobetterunderstandtheneedsoflocalareas, andhowgrowthwillaffectthemandfuture generations.

networks.

and renewingtheseassetsin atimelyand responsibleway.

Whangarei Real Estate – May 2023:

Embracing market dynamics with resilience

STEVE SHARP BRANCH MANAGER, BARFOOT & THOMPSON WHANGAREI

Northland has always had a few tricks up its sleeve when it comes to attracting folks. Auckland’s aging population knows it all too well—some of them are cashing in and retiring in our beautiful region, not straying too far from their loved ones. As international tourists return and the road network gets spruced up, Northland is set to shine brighter than ever. While the May figures reveal a 2.1% year-onyear decrease in Northland, bringing the median price to $715,000, Whangarei District has experienced its own unique dynamics recording a slightly milder year-on-year decrease of 1.4% with a median price of $719,500.

It is worth noting that sale numbers in May experienced a 11% year-on-year decline within Northland as a whole however, the majority of this decline was seen in the Kaipara and Far North districts as Whangarei’s sale numbers were actually up 7% compared to May 2022.

The Whangarei market

JO GREEN DIRECTOR TAIT REAL ESTATE WHANGAREI

Buyers are often taking longer before committing to a contract. We can’t blame them; they want to make sure they’re getting the best deal possible. Plus, there’s some uncertainty swirling around about prices, the economy, and let’s not forget, it’s an election year! With all these discussions floating around, it’s only natural for buyers to pause and assess the situation. And let’s not forget the elephant in the room— interest rates. Which way will they go? It’s anyone’s guess!

In summary, the Northland real estate market, marked by its adaptability and resilience, presents a compelling landscape for discerning buyers and investors. With Whangarei showcasing its own unique dynamics, stakeholders must consider the specific market influences at play. Ultimately, Whangarei’s enduring allure lies in its vibrant community, picturesque landscapes, and a welcoming spirit that transcends market fluctuations

Winter is upon us which traditionally sees a lull in the housing market, coupled with an election year, we generally expect an overall slowing while we wait to see who wins the ministerial seats. Politics and weather aside the latest statistics from Real Estate Institute of New Zealand are shining a positive light in Northland for May 2023 with a small but significant rise in the median house price of 2.1% when compared to the previous month of April.

First home buyers are entering into the market with more confidence since the relaxing of the loan-to-value ratios and interest rates stabilising. The most active buyer pool is the owner occupier, who often need to sell their property in order to purchase, which can be a nerve-wracking time for both parties as the buyer works towards an unconditional sale within the agreed time frame. Vendors are becoming increasingly aware of the necessity of price adjustments to meet the market, and of course, if you are selling and

buying in the same market it isn’t such a painful decision to reach, enabling you to move forward with your plans to downsize, upsize or whatever your next move may be.

Whatever the market, whatever the season, when planning to sell your home it’s extremely important to have all your ducks in a row for a swift and agreeable sale. Those ducks start with a professional real estate salesperson with whom you have great rapport and trust implicitly to do their best by you to achieve a premium price. They will work with you, starting with ensuring presentation is on point, recommending the best method of sale for your personal circumstance, and implementing a powerful marketing campaign with exposure across all platforms; the real estate website portals, digital and social channels, print, signage and of course outstanding professional photos/video. Our purpose is to make your property the juiciest peach on the tree by attracting as many active and passive buyers as possible to create competition. This will drive the price, and result in the most advantageous outcome for you.

There’s no one who knows the market conditions better than our local real estate experts. We’ve asked a few of them to share their local market update with us.

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Your local Whangarei market experts

PAUL BEAZLEY GENERAL MANAGER HARCOURTS WHANGAREI

As we move in to the middle of winter there are positive signs that the Whangarei District house prices are settling and less signs of values dropping . This combined with more inquiry from first home buyers and across most price ranges has seen an increase in sales numbers from April through to May .

June is looking positive with the level of confidence on the rise . The banking industry has increased their parameters for lending and there is significantly more property on the market compared to the same period last year .

The factors effecting prices and volume of sales are still centred around higher interest rates, cost of living rises which are eating in to debt servicing ability, a tight economy, and general caution in the property market.

The northland market is experiencing an increase in sales and it is taking fewer days to sell, well down on the peak of 80 plus days .

Over the country the prices have dropped around 10% year on year , however the current pricing level is likely to stay through the remainder of 2023 and perhaps in to 2024 .

Traditionally an election year sees a cautious approach from investors and owner occupier home buyers. However the market has endured so many different set backs over the past couple of years including covid, cyclones , floods and inclement weather , lending restrictions , and the Reserve Bank attempting to haul in inflation, I suspect the elections won’t impact too much.

We are now past the shortest day and heading towards the spring . Our roads are, for the most part, open and the rush out of Auckland may very well bring new buyers in to our market.

RACHAEL DENNIS MID-NORTH RESIDENTIAL SALES LEADER, BAYLEYS WHANGAREI

Bayleys mid north residential sales leader, Rachael Dennis, reviews the Whangarei residential market

Welcome back to buyers! June has seen a sense of urgency return to the market, with buyers connecting with properties and acting quickly and decisively to secure their dream homes. Auctions remain key in attracting cash buyers, with three properties accepting pre-auction offers and moving their sale dates forward. The iconic heritage home at 7 Tuatara Drive in Kamo sold under the hammer after 11 days on the market. 565 Rockell Road in Whananaki went to auction after 15 days on the market, with three buyers competing fiercely— the one-bedroom bach sold for $1,425,000, a $175,000 increase on the opening bid. Finally, 59 Mains Avenue in Kensington was moved forward and sold to thrilled buyers. While it’s true that, in general, properties are spending more time

on the market, there are exceptions. The key to success is finding the right combination of property, agent and marketing. The agents at Bayleys Whangarei are the experts at finding the right buyer for your property by using our international,

national and local networks. You can feel assured that whether your property spends ten days or ten weeks on the market, our agents will provide exceptional service and communication to deliver exceptional results.

Why Knocking Down Your Home and Rebuilding

Is the Best Decision You’ll Ever Make

If you’ve found that your current home just doesn’t suit you anymore, whether it be too small for your growing family, or dated, there are a few options you can choose from.

With soaring property prices, buying a new home is often unaffordable. If you can’t live in your dream home, consider a knock-down rebuild. DIY renovations have gained popularity, but they are time-consuming, energy-draining, and prone to disaster.

A knock-down rebuild offers a hasslefree alternative. Choose one of our models and customize it to suit your lifestyle, saving time, energy, and money compared to searching for a new home or attempting renovations. Starting from scratch on your own land may seem extreme, but it has benefits. Renovations are stressful and often encounter unexpected surprises, especially in older homes. Starting fresh allows you to design your dream home without budget blowouts or headaches. You’ll know the total costs upfront, avoiding nasty surprises.

Another advantage is gaining access to better suburbs and locations. Older homes in established areas may not meet your needs, but you can buy one at a good price and rebuild. Transforming the worst house on a nice street into the newest house is a smart move.

At Stonewood, we pride ourselves on building secure homes of excellent quality. Every Stonewood home comes with a one-year warranty and is covered by the Master Build Guarantee, providing peace of mind. Property prices have made buying a

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and locations by purchasing an

Themarket’sbiggestwinners

The researchfoundthebiggest on-paperprofitforQ1 2023was$11.3m foraWhitfordmansion thatsold $20matthestartofthe year.Thebiggest overallp between2018and2023was$18.25m, fora luxuryh inHerneBay whichsold for$23.5min2020.

Thebiggestloss forQ12023 was $1.5mfor apenthouse apartmentinMission Baywhilethebiggest overall loss for20182023was$7.2m forSirJohnKey’sformerParnellmansion,which sold for$16.3min2022.

Whatmakes asale‘special’?

Inthelastquarterthe FarNorth region’s average saleprice increased by 2.12%–thehighestincreaseintheNorthland region. We asked acoupleoflocalmarket experts to shareastandout saleintheMid-FarNorth,andwhatit wasthatmadeit so special.

21 Kurapari Road,Rangitane

Bestinclass,bestinstreetorbest foryou…?

Homeownershipisstillhigh on theagenda for manywho liveinNZ, proportionally higher thanmost westerncountries.Thereisnoneed tosecondguesswhy, becauseit doesn’t matter. What mattersisthatifyouhavea desiretobuy property –eithertolive inor rentout –thereare optionsaround. Importantly, the FarNorth candeliverthose options. We recentlyhad thepleasuretorepresent aproperty ownerwhoseplanshadchangedandtheirproperty in Kerikerineededtosell. We went forauctionasthesale methodwhichdoesbuckthetrend abit…why?Inthis markethowdoyouvalue adoup? Plusitpresentedan opportunitytosomeonewhocould realisemorevaluewith

apaintbrush,hardworkandsome cleaning.

Thepriceof ‘opportunity’varies forall,andthatiswhy insomecircumstances,selling by auctionisthewaytogo.

Fora little over$600,000thepurchaser gota3-bedroom, 2-bathroomhome, sitting on just over800squaremeters oflandwithsomeviewsofthewater.Onlyafew minutes’ driveintothecentreofKerikeri,just10minutesto abrand newpurposebuiltboatlaunchingfacility.

TheFar Northoffersunlimitedopportunitytothose whodesirethe work/lifebalancesomanyseek;combined withdirect accesstosomeofthemostuniqueand beautifulland,beaches,andculture. Isthatthebestdeal?… Ithinkso.

Werecentlysold averyniceandquiteuniqueproperty after ashort auctioncampaign.

This waterfrontproperty wasinthesame ownership for33 years.

Theproperty hadhas asmallhilltrack toleadingdowntothewater,soAgent Colin Taylortookhis owngolf cart alongto ferryviewerstoandfrom the waterfront.

After abriefbutbusymarketingperiod, we hadaround50partiesviewthe property withsomecomingback on morethan twooccasions.

Biddingat Auctionwasstrongwith54 recordedbidsanditultimatelysold over the owners’expectations for$1.96m.

This was asuccessfulcombinationof anagentthinkingoutsidethebox,an effectiveauctionmarketing campaign,and auniquewaterfrontproperty which attracted goodinterestleadingto asuccessfulsale.

Beach Parade,Oneroa, Auckland

StrathfieldLane,Whitford, Auckland

Gary Jones,Barfoot&Thompson Kerikeri

TomRutherfoord, Harcourts Kerikeri

THE FAR NORTH

Sweepingdown Te Oneroa-a-Tohe/NinetyMile Beach, across to Hokiangainthe westandBayofIslandsin theeast, our coastlineisblessedwithbreath-takingbays.But,likeawell-knownwhakatauki says,it’sthepeople that makethe place: Heahatemeanuioteao?Hetangata,hetangata,hetangata

Whatisthemostimportantthingintheworld?Itisthepeople,thepeople,thepeople.

Ftoallt attractionsavailable doorstep improv andinfrastructur by beingambitiousabout ourfutur haveb maritimefacilitie thelengthofourcoastline withse jettiesand recentl COVID-1 funding theinter our we

Facilities-in-theNortht

Anothersigni cant projectis thewaterfrontimprovementattheDoubtless Bay tourist ‘hotspot’ofMangōnui,fundedfromthecouncil’s Long Term Planwith acontributionfromCOVID-19recovery funding.Wehaveextendedtheboardwalktobetterconnect theharbourtothetown’s attractionswhile adding anew jetty, pontoon and accessto water recreational activities.

Te PouHerenga Tai- TwinCoastCycleTrailisanother draw fortouristsand residents. Using aretired railwaycorridor it followscoastline,traversesfarmlandandpassesthroughbush from Ōpua on theeastcoasttoHōreke on the westcoast.

Ourtownrevitalisation projectshavealso added arangeof facilities.In Te Hiku,our mostnorthernward,newplaygrounds, barbequeareas,pumptracks,communityart worksand historictrails arenow partofthe Kaitāia, Awanui andAhipara landscapes.In Kerikeri,ourbiggesttown, aprojectto revitalise thecentralgreenspacehas added ahugeplayground,fullsized basketballcourt,and aredesignedskateparksuitable forinternationalcompetitions. Anew playgroundin Kaikohe followssimilarstandardswith anew eagle’s lair climbingtower, awheelchair accessiblemerry-go-round,in-groundtrampolines andfamilybarbequeareas.

As we planourexpandingurbanareas,sportsfacilities are beingdevelopedineachofourthreeterritorialwardswith ‘hubs’ underconstruction in Kaitāiainthenorth, Waipapainthe east,andplansunderwayinKaikoheinthe west.The‘hubs’will cater fora rangeofsportsfrom football, rugbyleague,cricket, competitivegymnastics,hockey, softball,toswimming and croquet.

Anecdotally,weknowthat many ofournewresidentsmove tothe FarNorthfrom biggerurbancentres. Whilehousesprices inmostareaslast year fell by five percent, accordingtothe NZ Herald,inthe FarNorthaveragehouseprice rose by almost six percent. Nevertheless,averagehouseprices remain well below thoseinbigcitiesatjustunder$700,000inourdistrict.

Iamexcitedto be thenewMayorofthe FarNorthwhere we have30elected members acrossourcouncilandcommunity boards.

To findoutmoreaboutlife inthe FarNorth checkoutour websitewww.fndc.govt.nzwhereyou’ll findourlatestnews, rates calculators,landvaluetools,informationonour projects,as well as our keyguidingdocumentsliketheLongTermPlan, Annual Planand District Plan.

FarNorthDistrict recreational

facilities

81urbandevelopments, restorationandrevitalisation upgradesinTeHiku

87km

TePouHerengaTai–TwinCoastCycleTrail

10 locations withupgraded maritimefacilities

20+ boatramps

40+bookable councilparks andreserves

3sportshubs indevelopment (oneineachward)

KAHIK

Far North District

Local market commentary from our real estate experts

Gary Jones

SALES MANAGER, BARFOOT & THOMPSON KERIKERI

The market in Kerikeri and surrounds is still subdued from the highs of the last couple of years.

Listing numbers are still on the improve, which is positive for buyers giving them more options, so the market is swinging the scales fi rmly towards a buyers’ market.

The $500K- $800K range has been particularly quiet with only 6 sales registered in the last quarter, versus 15 sales for the same period in the $800K - $1.2M range. (REINZ Statistics at 8th June 2023).

Th is confi rms that fi rst home buyers are still holding back due to increasing interest rates and the high cost of living, and investors have gone quiet as interest deductibility is wound back, and cost of healthy homes compliance making rental property investment less attractive.

Sales in the $800K to $1.2K are steady, with buyers in this segment less affected by financial constraints and likely to have a lesser

reliance on mortgage funding. We are seeing some properties coming to the market in this price range selling within a short time frame.

Effective marketing campaigns in conjunction with realistic sellers is usually a winning recipe when the market goes a little flat, so if vendors are prepared to meet the current market, they are more likely to achieve a sale in a timely manner, which is prudent as more listings become available increasing competition.

Trading Bank mortgage interest rates are now starting to pull back for 2+ year terms so the banks are obviously forecasting some flattening out of the recent increases with potential drops coming in the medium term. Th is is all positive news for the housing market and we expect that as we get through this year and all the challenges it has presented, we do see an improvement in the real estate market and expect things will start to normalise after the roller coaster of the last 2-3 years.

Tom Rutherford MANAGING DIRECTOR / BUSINESS OWNER HARCOURTS KERIKERI

Location location location

Many will have their opinion of the importance of the word repeated three times, however for the sake of this piece, let’s put aside the individual desires that influence if you prefer, coastal, rural, lifestyle or a property in town. When the residents of the Far north talk location… they mean the Far north, in all its glory. From the big pork roast sandwiches at the Towai tavern to the breathtaking turbulent waters of the meeting of the seas at Cape Reinga. North to South and East to West, if you want location, look no further than the Far north.

Whether you rent or own, the trends of real estate impact everyone differently and has you read all the articles in this publication, the good, the bad and the ugly you will form your opinion of the market and the impact it has on you.

The reality is the property market changes and continues to evolve as it has for decades. At some stage each sector does benefit, currently those looking at entering the property market are in a strong position to negotiate, however that will swing at some stage and as listings become limited it swings back the other way to property owners. There are two old school facts that don’t change and are not influenced at all by the trends. Property is a mid-to-long-term investment and if you buy and sell in the same market, the state of the market is irrelevant.

Establish what is important to you, what you want to do and achieve and then progress to the next stage which is working with a trusted advisor/consultant to fulfil your desires.

The Far North of New Zealand - A Diverse and Unique Real Estate Market

The Far North of New Zealand is a truly unique region that offers diversity in its real estate market.

From the top coastal properties in popular areas such as Paihia, Doubtless Bay, Karikari Peninsula, Ahipara, to the water-front properties in Houhora Harbour with an excellent game fishing club, this region has it all.

While the current market may be challenging, it is important to note that there is still plenty of interest in the real estate market in the Far North. There might not be the same volume of sales as before, but the range of properties available means that there is something for everyone. From premium coastal properties to large rural blocks and a strong lifestyle market.

One of the biggest driving forces of the lifestyle market in the Far North is the lack of listings, as more people are starting to look towards the region in search of their dream

property. The main buyer base for the Far North still comes from the south, particularly from Auckland. However, there are also strong local buyers who are investing in their own backyard.

We have recently come from the strongest real estate market that I have known in 30 plus years in the business. The farming industry has been one of the standout markets however with the carbon prices falling, the larger rural sales have slowed down, but the lifestyle market remains very popular.

Overall, the Far North is a region that offers great diversity in its real estate market. Whether you are searching for a luxury coastal property, a standard family home, or a tranquil lifestyle property, the Far North has something for everyone. So, whether you are an investor or a home buyer, the Far North is a region that should be at the top of your list.

Gerard Ponsonby FRANCHISEE OWNER, LICENSED REAL ESTATE AGENT AND AUCTIONEER, KAITAIA, MANGONUI & PAIHIA

LUXURYBACHON‘KIWI’ISLAND SELLSFOR$7.5M

Aluxury bach ona picturesqueislandinthe FarNorthhassold for $7.5million,OneRoof can reveal.

Theestate on RobertonIsland,also known asMotuarohiaIsland,was snappedupinDecemberlast year,less threemonthsafter firsthittingthe market.

The6464sqmproperty inthe Bayof Islandswassoldwith afour-bedroom colonial-stylebach,privatejettyanda landingspot fora helicopter.

Itwaslistedwith Bayleysagents JohnGreenwood and IreneBremner.

Greenwoodtold OneRoofthe buyers were an Aucklandfamilywho hadbeenlooking fora while.“They hadbeenlooking fora whilelast year

andtheycameinbyhelicopter,”he said, addingthattheybeen wonover by the “completepackage”thatthe propertyoffered.

ThevendorstoldOneRooflast year thattheyhad usedtheislandastheir private holiday retreat formorethan 30 years.

Theoriginal1970s-builtbach was given aluxuryupgradebyLaurence SumichArchitects,andtheisland, whichhas fourotherhomes,hasits ownfull-timemanageronsiteatall times.

“DOC worksverycloselywith the residentsinordertokeepthe island well in aconservationsense and predator-free,”Greenwoodtold

OneRooflastyear

“

They actually photographed akiwi

soldwithprivate jettyandhelicopterlandingspot.

on thefrontlawnof thisproperty one afternoon, recently. Youcanseethat shot on ourlisting.”

He addedthatthewhiletheisland wascompletelyoff-grid,properties thereweresolar-poweredwith back-up generatorsandseptic wastesystems.

Greenwoodhas twootherhighprofileislandproperties on his books: MotuketeketeIsland,intheHauraki Gulf,whichheisselling withformer deputyPMPaula Bennett;and MotuekaitiIsland,inKaeo, FarNorth. Bennett,Bayleysnationaldirector forcustomerengagement,told OneRoof inMarch thatpropertieslike MotuketeketeIsland rarely comeup forsaleand were “priceless”.

Greenwoodsaidthat Motuekaiti, on the otherhand,wasan “affordable”

islandandwas suitablefora Robinson Crusoe type or “Tom Hanksfromthe movieCastaway”.

Greenwoodsaidthatinterest in bothislandshadbeen high.“Wehad over200enquiries forMotuketekete. Itisthemoreexpensiveofthe twobut closerto Auckland. We’vehad over 160 enquiries forMotuekaiti,whichwe’ve beenquotinginthe$3.5m range.

“Over90%ofenquiries were from NewZealand.Even if yousaid50%of those were dreamers,thatstillleaves anenormousnumberofpeoplewho haveover$5mtospend. Somepeople havethoughtsofa fishinglodgethat mighthaveahospitalityaspect,but mostarelooking forprivate retreat for themselves.

“Eventoday, thereisplentyof

Yourownprivatefreeholdisland

This beautifullittlegemison the market forthe firsttime since1990.

Itisabsolutelystunning, tal-clearwater,and asandybeach, ouldbein Fiji. tedjust NorthofMatauriBay, 10minutesina helicopter ihia,or15 minutesfrom Bayby boat.

slandis3.34 haandisa hapedcone,with aprotected ch facing westawayfromall ailingwinds.

ouldn’t havedesigneditbetter rboatanchorageordriving ursealegsuptheprotectedbeach in eatherconditions.

TheIslandisseparatedfrom the mainlandat PakuruPoint Mahinepua Peninsular,byapproximately200 metersthroughachannelthatis navigablein most weatherconditions.

moneyaroundatthehigh end, it’s just peoplearenotspendingitbecause theyare sounsureofwhat’s going tohappen.It’s not only the New Zealandeconomy and government, butalsothe worldeconomy.Thatsaid, ithasn’t stoppedinterestfrom New Zealanders.”

Hesaidthatislandbuyers “are definitelynotthesameas your Omaha buyer.They want alifestyleanda retreat,absoluteprivacy.Somecomein by helicopters,othershave their own launchesor SeaLegs.”

In Aprillast year,Motukawaiti Island,alsoknown as StepIsland,in Northlandsoldto aNewZealandbasedfamilyfor$10.6m.

To read moreabout this uniquelistingviewat OneRoof.co.nz/1890567 or contactBayleys

agentIrene Bremner on 021190 2090

CatherineSmith

Sliceofparadiseinthe BayofIslands

■ 1Roberton-MotuarohiaIsland, Russell, FarNorth,is a6464sqm estateinthe BayofIslands.Photo /Supplied

Twooceans twoharbours. Fromits stretchesofwhitesandybeachesand surf breaks,stunningharbourinlets, unique fishingspots,nativeforestsand rollinggreenpastures, to itsbustling cafes, communitymar open roads, Kaiparadistrictstrikestheperfectbalancebetweennaturalsplendourand convenient both AucklandandWhangarei. Theresidentpopulationisaround26,000 (Infometrics2021).

KAIPARA THEPLACETO BE!

KaiparaDistrict hasapproximately 3,117km2 oflandandis oneof the fewdistrictsinNew Zealand thatstretchescoasttocoast;from RipiroBeach facingthe Tasman Seato MangawhaiHeads on the PacificOcean.The districtextendsfrom the NorthAuckland Peninsulasouthof Kaiwakaand Mangawhai inthesoutheast,aroundthefoothillsofthe Brynderwynranges,throughthe Northland hinterland, reaching Dargavilleandupto the mightyWaipoua forestinthenorthwest. From therethedistrictstretchesdownthe westcoasttothe Kaipara Harbourentrance by Poutō Peninsula.

EveryElected Memberaroundthe Kaipara DistrictCouncil tableispassionateabout ourbeautifularea.Moreandmorepeopleare discoveringthe many benefitsourdistricthas toofferthosewhomakeit their homeorplace of work.Andasour districtgrows,Councilis focused on ensuringour infrastructurekeeps uptosupportourcommunitiesandhelpthem thrive.

We’reworking on someexcitinginitiatives, includingtwo keyprojects on each sideof thedistricttoincreaseconnectivityandopen uptransportchoices.In Dargaville we have securedfundingfrom NZTA fordesignated cyclelanesandsharedpaths. Soon,more peoplewillbeableto getoutoftheir cars andsafely walkorcycleabouttown. Addto

thatthe Kaihu Valley Trail, anewly opened cycleway exploringpartsofthebeautifulwild westcoast.

InMangawhai we havejustcompletedthe second phaseof asharedpath,and athird sectionwillstartlaterthis year.Thework ispartofawidersharedpath networkfor Mangawhai,improvingsafety andconnections betweenits twocentres,andmakingiteasier totravel by foot,bikeorscooter.

Theseland-basedtransportoptionsare complemented by an enhancedwater-based network inthe KaiparaHarbour.A brand new wharfwillsoonbe finished downin Poutō, addingtotheDargavillepontoonandthe recentlyupgradedwharfatPahi(allsupported by externalfunding).Imagine your weekends spentexploringthestunningwatersofthe harbour.

we arealso focused on our roleinfacilitating managedgrowththroughoutthe district, providingaccessibility andaffordabilityvia thoughtfulland zoning.Ifyou havequestions aboutsettingup abusinessin Kaipara,come andtalkto ourstaff about whatispossible. Right now, we areintheprocessoflooking atthefuturedirectionof theDistrict Plan,

enablemorea ordablelivingandvibrant communities.

Kaiparaisafantasticplacetoliveand play. It really isthe placetobe! If youare considering Kaiparadistrictas yournext homeorplaceofbusiness,welcome. We can’twaitto have youhere.

CRAIGJEPSON MAYOR, IPARA DISTRICT

PAHI &WHAKAPIRAU

BAYLYS BEACH

Property

The get rich quick myth: How propertyinvestors really make their money

If you’re notrunning the numbers, youcould headed foraloss

Investing in property is an emotivetopic, and it’s often hotlydebated. Ourability to invest successfully greatly affects ourqualityof lifeand fundamentally comes down to educationand discipline.I spent manyyears reading about howto getrichquick and my takeaway was that it doesn’t matter what you do –aslongasyou do something –and youdon’t getrichquick. So, buckle in forthe long haul.

With property,debt gives you the abilitytoenterthe market and superchargeyour returns. Given howthe NewZealand housing market has performed over the long-term, it is likelythat investinginproperty willcontinue to be agood avenue forthose wanting to grow their wealth.

Thereare twokey questions forthosecontemplatingentering the market: “How much money willImake?”and “Isnow agood time toinvest in property?”The answers dependonalot of factors,

manyof which areout of an investor’s control, so let’snarrow the discussiondowntowhat an investor cancontrol.

It’s commonlystated that you make your moneywhen youbuy and that comes down to what you areprepared to pay. Can youwalk awayfroma transactionifthe numbers don’tadd up?

In this example,and youwould needtochangethe inputs fora property youwereinvesting in, I knowthat each year I’mgoing to needtocontribute $38,200 from my personal income That doesn’t make it abad investment –it just gives me different decision points. Howmuchcapital gain do Ithink Iwillmake during my investment? If it’s 3% ayear then it’s an $18,000 gain in year.Can I improve the property and increase my rent by $50 aweek –another $2600 ayear?

Interest rates (both up and down) havea significant effect on the investment, with a1%decrease

giving youanextra$6000 ayear

Thereisanargument forignoring the interest component if youhave sufficient cash to fund allor partof the purchase price,howeverwith termdeposit rates around 5.7%for 12 months, the opportunitycost on interest income is significant and should be considered.

Recent changes in legislation haveresulted in property investors needing to improvethe quality of their investments (increased maintenance costs)and not being able to deductinterest (increased tax costs). Potentially thereisthe abilitytoincreaserent butthereis alimit to what tenants canafford to pay. We just need to factor these into our expected returnand the price we areprepared to pay.

Ultimately the decisionon whether to invest in property comes down to whether youare willing to coverany shortfallinrevenue and whether youare willing to ride the ups and downs and be in forthe long haul.

ALTOGETHER

DELIVERING REALESTATEWITHHEART

Areyoulooking foradedicatedrealestate professionalwithintegritywhocandeliver exceptional results?Intoday’smarket,choosingtherightagentcanmakeallthedifference. JessBarneshas consistentlyachievedremarkablesuccess by combiningherunwaveringintegrity,unmatched motivationand extensiveexpertise.

Jesshasan award-winning connection to the Whangareicommunityandanoutstandinglocal network.DiscoverthedifferencewithJessBarnes, yourtrustedlocal real estate professional.

Ready to makeamove?ContactJesstoday.

JessBarnes 027695 8330 jess.barnes@bayleys.co.nz

MACKYS REALESTATELTD,BAYLEYS,LICENSEDUNDER THEREA ACT2008

Maungakaramea 42 Tangihua Road

Onerahi 294Beach Road

Kamo 23 LochielPlace

Kamo West 18 AugustaPlace

Tikipunga

Morningside 22HilltopAvenue

Askingprice$595,000

Viewdetailsatwww.oneroof.co.nz/1923095

Viewdetailsatwww.oneroof.co.nz/1923040

Buyers $600,000+ Viewdetailsatwww.oneroof.co.nz/1723963

ONEROOF FIRST HOME BUYER’S GUIDE:

How to set a budget for your first home

one

If you want to buy your first home, it is important you have a realistic budget from day one. It’s the first step in working out how much you can afford and how much the bank is likely to lend you. A budget also helps you focus on the right houses.

How much can I borrow?

The first step in working out how much you can afford and how much the bank is likely to lend you is to crunch the numbers to determine how much you can afford to spend on a home. This helps you focus on the right houses in your price range.

Most banks have affordability calculators, which crunch your income and spending to determine how much you can comfortably pay each fortnight or month.

Most buyers need 20% of the home’s purchase price as a deposit in order to borrow the rest as a mortgage. With a brand-new home, the deposit is 10%. If you qualify for schemes such as Kainga Ora’s First Home Loan and First Home Partner, it is possible to buy with a 5% deposit provided you meet certain income and property price thresholds.

To calculate how much you have for a deposit, add up how much you have saved already in KiwiSaver, other investments and in the bank. You may be able to borrow money from the bank of mum and dad, or, if you’re lucky, receive a gift that helps you gather sufficient deposit to buy.

Once you’ve worked out how much deposit you have, you will have an indication of how much you can afford

to pay for a home. It is important to understand how much homes are selling for in the area you are interested in moving to. You can find sale prices for recently sold houses, estimates based on sales in the area and also use the OneRoof House Price Report updated monthly on OneRoof.co.nz.

Supplementing income to afford repayments

How much you can borrow for a mortgage comes down to how much the bank believes you can repay comfortably.

Often, first-home buyers will seek to supplement their income to help cover the repayments:

• Buying as a single or a couple: Buying with two incomes is usually easier than one. If you are applying for a joint mortgage (with a partner, family member or friend) the bank will calculate how much it will lend you based on your joint income and expenses. If the mortgage is 100% in your name the amount you can borrow will be based solely on your income and expenses.

• Having a tenant, flatmate or boarder: If you plan to live with a flatmate in your new home, you might be able to count some of the rent as income in the mortgage calculation. Be aware that lenders won’t count the entire rent paid to you as income.

Speak to the bank or a mortgage adviser

Your bank’s mobile mortgage manager or an independent mortgage adviser (broker) can help you do the numbers.

The service is usually free. Your manager or adviser will go through your finances and advise on issues such as consumer debt, and suggest ways to increase the available surplus you have for mortgage repayments.

You’ll need to learn some of the jargon

• Loan-to-value ratios (LVRs): the percentage of the loan that the bank is willing to lend. It adds up to 100%. So if the LVR is 80%, you need a 20% deposit.

• Debt-to-income ratios (DTIs): some banks will only lend you a certain multiple of your income, such as six times your salary.

• Credit Contracts and Consumer Finance Act (CCCFA): a law that requires lenders to act responsibly. It can, however, restrict how much home buyers can borrow because banks are required by law to ensure

the loan is affordable for the home buyer.

Pay more than the minimum repayment if

you can

Most first-home buyers take out a 30-year mortgage because the repayments are lower than shorter mortgage terms. However, the longer the mortgage term the more interest you will pay in total over the lifetime of the loan.

If you can afford to, it’s worth budgeting for higher repayments or a shorter loan term (25 or 15 years).

What you can afford now might change in the future

When banks assess whether they will lend to you, they use a test rate which is several percentage points higher than the actual interest rate. This helps ensure you can afford the mortgage if interest rates go up. It is still a good

idea to create a personal budget based on your actual expenses.

Things to consider

A home-buying budget takes into account how much you earn, how much deposit you have, the costs of buying, and what your one-off and ongoing expenses will be after you move in.

Make sure you calculate the upfront costs of buying a home such as lawyers’ fees and LIMs, and also new ongoing costs such as council rates, body corporate fees and house insurance.

Using KiwiSaver

Saving for a house deposit requires that you spend less than you earn. Most first-home buyers save with KiwiSaver. There are many advantages to this:

• Good an additional 3%, although some employers use a “total remuneration” clause in the employment agreement to avoid paying this.

• You’ll receive the annual government contribution of up to $521.

• You may also qualify for a First Home Grant. The grant ranges from $3000 to $20,000 depending on the number of years you’ve been saving, whether the home is existing or brand-new, and if you’re a single or a couple, buying.

• You won’t be tempted to dip into your savings for everyday spending.

If you want to buy your first home, it is important you have a realistic budget in mind from day

Private wealth active in NZ marketplace

Ultra-high net wealth individuals and the family office sector in New Zealand are seeing commercial and industrial property investment as a viable hedge to inflation and a valuable wealth creator, mirroring global trends.

Private investors were the most active buyers of global commercial real estate in 2022, and for the first time, outpaced institutional investment according to the latest research by Bayleys’ global real estate partner, Knight Frank.

In the 17th edition of its marketleading The Wealth Report, Knight Frank revealed that private wealth accounted for 41 percent of all commercial property investment globally, to the value of $455 billion.

This is private wealth’s highest share of global commercial real estate investment on record and the firm suggests that 2023 will provide a unique opportunity for private clients looking to enter the market, or consolidate in it further, as rising debt costs may lead to greater inventory becoming available and even less institutional activity.

The Wealth Report surveyed 500 high-net worth individuals (HNWI) across 10 countries and territories, along with more than 500 private bankers, wealth advisors, intermediaries and family offices who between them manage over US$2.5 trillion of wealth for ultra-high net worth individual (UHNWI) clients.

Knight Frank estimated the

number of UHNW worth individuals (US$30M+ net wealth including primary residence) at 20,874 for Australia and 3,118 for New Zealand.

Quoted in its latest Total Property portfolio, Bayleys’ national director commercial and industrial Ryan Johnson said global private investment trends detailed in The Wealth Report are playing out in New Zealand.

“Whether in a private capacity or through an established family office, high, or UHNWI investors are commanding a growing slice of the prime commercial and industrial property market pie around the country.

“Prime property is defined as the most desirable and most expensive property in a given location, generally in the top 5-percent of each market by value.

“Our data shows that of all commercial and industrial sales over $20 million in New Zealand last year, 47 percent was to private buyers –almost double that of institutional capital and around three times that of the syndicated market.

“Despite economic headwinds, investment by private capital remained robust with proactive investors seeing value and long-run potential in prime commercial and industrial assets.”

Johnson said through its business partnership with Knight Frank, Bayleys’ vendor clients can gain access to wealthy off-shore private investors looking to grow asset bases through prime property acquisition.

“Globally, nearly 40 percent of

HNW investors surveyed by Knight Frank are considering investing in commercial property outside their country of residence.

“With our perceived safe haven status, New Zealand is well-positioned to benefit from cross-border capital.

“With borders now open, UHNW investment out of Asia could ramp up again as investors look to diversify portfolios and counter some of the economic headwinds faced by markets like China.”

Since 2017, Singapore has seen a seven-fold increase in the number of family office entities as super-wealthy families rethink how to safeguard and grow wealth for future generations.

Although slower on the uptake here, Johnson says there’s been a rise in New Zealand’s family office investment sector with Bayleys actively working in this space across its service lines.

“These multi-generational high net worth structures use scale of wealth to get into a different investment league, looking well beyond the retirement or income needs of the core family, and seeking to optimise the value of their private estate to grow capital as an enduring family legacy.

“Building relationships with key stakeholders is something that Bayleys, as New Zealand’s largest fullservice real estate agency, is superbly positioned to do and we work closely and discreetly with the country’s UHNWI tier of investors and increasingly, are growing our family office involvement.”

Johnson said New Zealand’s

wealthiest families all have some exposure to the property market, and most are extending their asset portfolios to leverage gains from demonstrably defensive asset classes.

“We’re seeing similar patterns of investment now as we did post-GFC with wealthy New Zealand private investors spurred on by pricing resets, and less competition currently from listed and institutional buyers who are still trading at deep discounts.

“Bayleys has demonstrated transactional activity at the prime end of the market with cash-rich private investors – both domestic and off-shore – acquiring defensive assets across the industrial, retail, hotel, office and development land sectors.

“While the all-in cost of debt will be a key consideration for all investors in the year ahead, private capital is typically less reliant on debt than other investor segments, so we’d expect to see continued confident buying activity from the private market.”

For the past five years, The Wealth Report has been tracking private

investor interest in environmental, social and governance (ESG) principles, with the key driver being future-proofing portfolios.

Latest survey results show that energy and climate-related factors are increasingly being integrated into property acquisition decisionmaking with carbon emissions the leading environmental investment consideration.

“Just as funds managers are increasingly investing in impact funds, private investors looking at prime assets are factoring environmental and social impacts into their acquisition decisions,” said Johnson.

“While long-run financial returns remain central to most investment decision-making, as ESG corporate reporting becomes more standardised and better understood, we’d expect private wealth investment for ESGaligned property to increase and to see family wealth being used to drive better societal and environmental outcomes.”

Kiwi rich-listers see commercial, industrial property as viable hedge to inflation.

Article supplied by Bayleys

Bayleys’ Ryan Johnson says global private investment trends are playing out in New Zealand.

Whangarei offers adynamic commercial real estate market ripe with potential forinvestors. Whangarei’s prime location as agateway to Northland and its robusttransportation infrastructuremakeitanideal investment destination.

Diverse Economyand emerging industries

Whangarei’straditionally primary-based economyis diversifying with emerging sectors liketechnology, creativeindustries, and advanced manufacturing. This diversification opens doors forcommercial real estate investment, such as industrial space, new and updatedoffice spaces, research facilities, and innovation hubs.

Changing market and adaptability

Whangarei’scommercial real estate market is dynamic, presenting both challenges and substantial opportunities. Adaptable investors can leverage changing trends, identifying undervalued properties and seizing emerging opportunities forgrowth.

Whangarei’sdynamic commercial real estate market, driven by its strategic location, diverse economy, and changing market dynamics, presents exciting opportunities forinvestors. By recognising and adapting to emerging trends, investors can position themselves to achieve substantial growth and returns.

Whangarei offers an ideal environment forsavvy investors to thriveInthe ever-evolving commercial real estate sector

Paul Sumich

021606 460

paul.sumich@bayleys.co.nz

SEIZING OPPORTUNITIES IN WHANGAREI’S DYNAMIC COMMERCIAL REAL ESTATE MARKET

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livingspacecreates awelcoming familyentertainingenvironment. Withindooroutdoorflowleadingto alfrescoarea,entertaining acrowd is abreeze. Thegableroofline and featurerainscreencladding creates astylishyetsimplistic elegantfinishtothishome.Over thepast20years theKiwidream hascome along waysincethe elusivequarteracre. That’swhy we’reproudtostillbeableto provide akiwisolutionforyour first home,coastalhome,ordream home. We offer arangeofplans from 60 -250squaremetresand beyondwhichcanbebuiltstraight fromtheplans,or wecanusethem asinspirationtocreateyourown kiwidream.A1homeshavebeen proudlybuildingkiwihomesfor kiwisforover20years. We support

localbusinessesthatproduce buildingmaterialsspecificallyfor theNewZealandclimate. The A1Northlandteamwelcome theopportunitytodiscussyour upcomingbuildproject. Thechoice isyourstobuildyourway.Sitback, takeiteasyandletuslookafter thejobfrom starttofinishwithour ‘BuiltHome’ optionortakecontrol ofthebuildyourselfwithour‘Kit Home’option.AllA1‘BuiltHomes’ comewith aMasterBuild10 Year Guarantee. So,youandyourfamily havepeaceofmindthatyourhome isprotected.A1homesguarantee asmoothbuildprocessandare readytoget yourprojectunderway todaywithcurrenttimeframesof under12months.Don’tdelay,give ourteam acalltoday.