PLUS: Housepricesin your suburb —havetheyresistedthedownturn? Monday,September12,2022 PROPERTY REPORT
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MysurveywithREINZshows thatworriesabout highinterestrates,accessto finance,andevenfalling prices,areallabating.Italsoshows numbersattending openhomesrisingforthe firsttimesinceFebruary2021. The housingcyclehasnowentered thepreparatory phaseforturningbackupward.
“RIGHTNOW,POTENTIALLY EVENTHISMONTH,ISAS GOODASITISGOING TO GET FOR AVERYLONGTIME.” From theeditor 4 Coverstory:Beginner’sluck 9 OneRoofFirstHomeBuyerGuide 25 Moneymatters:RupertGough 26 OneRoof-ValocityHousePriceReport 38 Comment:AshleyChurch Inside Designandcover BethWalsh │ Artwork Derek Watts Subeditor Akanisi Taumoepeau Photos FionaGoodall, TedBaghurst,PeterMeecham,GettyImages Startyourgarden withsomefreeseeds fromProfessionals. ContactyourlocalProfessionalsteamorvisit ourwebsiteforsomecomplimentaryseed packetssoyoucanswingintospringand getyourgarden started. Ifyouarethinking of moving thisspring talktoourteam, they’reyourlocal marketexperts. with LicensedREAA2008
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Whenwe talkedaboutgettinga footontheproperty ladderit wasinthecontextofstartingsmall,thenlater upgradingtoaccountformorechildrenand ahigher incomefurtherupthe workladder.Thesedaysit seemsmore to refertooutrightbuildingofafinancial wealthportfolio andavoidingmissingoutonwealth accumulationbeingenjoyedby others.
We’veaskedNZ’sleadingpropertyexpertsto explainwhythehousingmarkethaschangedinsuch ashortspaceoftimeandwhateffectinflationand interestratesarehavingonhouseprices.
MARKET WATCH
naverageeachyearinNewZealandabout 80,000housesareboughtandsoldaroundthe country.Thisisabout4.4%ofthetotalhousing stockandmeansthatforthevastmajorityof peoplethesometimeslargeupsanddownsofhouse pricesareirrelevant.Sowhydowepaysomuchattention towhatishappeninginthehousingmarket?
Forthosewhocan’ttelltheirdeadlinesalesfrom theirtenders,andareterrifiedbyauctions,thisisthe perfectguide.
Butfor thoseofus whomadeour firstpurchase beforegovernmentstoldusweneededtobuildwealth for retirementbecausenationalsuperannuationmight notbeaffordableoneday, lifetimewealthaccumulation wasnot reallythemotivation.Ourfocuswason securing ahomeinwhich toraise afamily. We wanted somethingnot too farfromourworkplace,perhapswith someoutsidespaceforplaying,gardening,andhanging the washing.
Thatis,yousellwhenmarketsareexceptionally frothyandthereisnotroublefinding abuyerwhosets noconditionsforthe lesserqualityassetyoumight wanttosell.Youbuywhenthereare ahighnumberof sellers,youcanuseeachas abargainingchipagainst theothers,andyoucanpickandchoosethe bestquality assetswith greatestlong-termoryield growth potential.
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Youcan pickupapropertyforasmuch as 15% -20% lessinAucklandthanyouwouldhavepaidlatelast year.InAucklandyouhave80%morehousestochoose fromthanayearago,outsideofAucklandalmost 130%more. Vendorshavelikely reached their pointof capitulationto market reality, witha recentASBsurvey showinga net31%ofpeopleexpectpricestofallfurther (28%inAuckland).Thissurveyis notagoodpredictor ofwhatwillhappen,butitdoes in thisinstanceallow ustosayvendors havealmostcertainlylost faithinany beliefthatwaitingwill yield abetterprice.
Theriskiest move afirst homebuyer can make
First,as anewbieintheinvestment fieldyouwon’t yet havelearnt akeylessontheexperiencedinvestors have.Don’ttrytopickthetopsandthebottoms.You’ll feelfarworsewaitingtoolongand missingeitherthan takingadvantageofthelargenumberofpeopleon the
othersideofthetransaction givingyou the abilityto pickandchoose.
Alsoinsidearethelatestsuburbvaluesforallof NewZealand,providedbyourdatapartner,Valocity, andinsightsandcommentaryfromindependent economist TonyAlexander,propertycommentator AshleyChurchandmortgagebrokerRupertGough. Keepintheknow!
Whyholdingoff untilpriceshavebottomedisthewrongchoiceforKiwis tryingtoget afootonthepropertyladder, writes TONYALEXANDER
elcometothelatestOneRoofProperty ReportandourfirstOneRoofFirstHome BuyerGuide. We wantedtoputour expertisetouseandhelpnervousfirst-homebuyers andpropertynovicesmakesenseofthebuying process.Inthefollowingpageswe’llprovidetipsthat willsupportKiwisontheirpropertyjourneyand set outwhatgrantstheycandrawonwhenmakinga purchase.
Second,ifyourfocus is whereitshouldbeon securing ahomeratherthanthefirsthousingassetfor yourportfolio,then wherethemarketsits rightnow, potentiallyeventhis month,isasgoodasitisgoingto getfor averylongtime.
Thisis aproblemfor currentfirst-homebuyersright thismomentbecauseofthestagewhichourhousing cyclehas just reached.Currentlythereisadominant focus onhow muchfurtherprices have tofallafter alreadydeclining10.4%fromtheir nationwidepeak lastNovember.Aucklandpricesare down16%.The commonexpectationisthatpriceswilldeclinemaybe another5%.Afterthatitseemstheprevalentview isthingswillsit flatfor anextendedperiod of time. Actually, Iexpectrises of5% -10%in2023.
Mainlyitis because we considermorewealth to be betterthanless.Ifhousepricesarerising,wefeelricher, potentiallymorecleverandpleasedwithourselves, happier aboutourabilitytofundour retirementby downsizingifnecessary,and perhapswelike areason to justifyspendinguplargeon aholidayor newfurniture.
Shouldyoutryandbecleverandhold outforthe final5%of pricedeclines? Considerthis.Haveyouever heardyour parentsorgrandparentsbemoanthefact theyboughttheir firsthousefor$65,000 buthadthey waitedthreemonthscouldhavegot it for$61,750?
•TonyAlexanderisanindependenteconomics commentator.Additionalcommentaryfromhimcanbe foundatwww.tonyalexander.nz
So,arefirst-homebuyersinfactstartingtofocuson thenewopportunitytosecureahome?Maybe.My latestsurveyof real estateagentsshowsthatfor the firsttimesinceSeptemberlastyearmoreagents are seeingincreasednumbersoffirst-homebuyersthan decreasednumbers.Lastmonth anet 36%wereseeing fewer. Thingsmaybechangingveryquicklyamongst first-homebuyersandif youhave amisplacedfocus on gettingyour firsthousingassetatthebottomof the pricecycleratherthanyourfirst ownedhome,thenthe clockistickingagainstyou.
Mymonthlysurveyof realestateagentsundertaken alongsideREINZhasjust shownthat45%ofinvestors lookingtomake apurchasearemotivatedbyhopesof findinga bargain,up from30%inFebruary.Thesmallest netproportionofagentsareseeinginvestorsstanding backfromthemarketsince Septemberlastyear.
Ifyouareafirst-homebuyerand yourfocusison wealthgrowth,thenyouthinkyouareincentivisedto holdoff untilprices havebottomed.Thisis adangerous strategy easilychallengedintwoways.
BEGINNER’S LUCK
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PHOTO /T ED BAGHURST
Listings areup, pricesare down andcredit rulesare loosening. Can first home buyers getahead, when so muchhas beenstacked against them? CATHERINE MASTERS checks out the state of the market. ? FIRST HOME BUYERS | COVER STORY
“Over recent years we’ve seenalot of people pushed in to places they don’t actually really want to live,both
Patterson says he haspeers who are“not completely comfortable” with wherethey have ended up and some have found themselves stuck in aplace that doesn’t quite fit them and far from their social connections.
James Wilson, head of valuations forOneRoof’sdata partner Valocity,saysfirst homebuyers who think they
“If they could have afforded $1m last year for a mortgageitwould be about $850,000 this year”
Awin for first home buyers, though, was this year’s Budget announcement of the removal of first home loan caps nationwide and theincreasing of the price caps for first home grants.
The relaxation of the stringent CCCFA(Credit Contracts andConsumer FinanceAct) lending rules banks have been applying around home loan applications has seen newbies being able to dip their toes in thewater again -and those rules aredue to befurther loosened, although the next wave of changes won’t take place until March.
While high inflation has grabbed headlines with stories of people cutting back on their spending, Patterson says the untold story is whathappenswhen people refix their mortgages.
People arealso realising thereisnopoint stretching their budgets to the maximumoftheir loan approval, he says.
Economist Benje Patterson, however,urges caution about buying far from home just for the sakeofgetting on the property ladder
He says he bought when rates wereabout 5per cent but was alwayslooking at how he would cope if they were10per cent or more.
IRST HOME BUYERS areemergingfroman enforcedhouse buying slumber,although the road to home ownership is still noteasy. Tweaks to Government regulations and home loan schemes, however,have eased the pain abit after adifficult few years, say agentsand commentators.
Developers have become morerealistic, too, he says, which helps because they areselling property for afair price as opposed to wanting morethan what the house was worth in last year’s market
“USUALLY, BEFORE YOUREALISE IT’S HAPPENING,YOU’RELOCKED OUT AGAINSODON’T FALL INTOTHE TRAP OF SITTING BACK AND WAITING.“ JAMESWILSON, VALOCITY HEADOFVALUATIONS
Given house prices have dropped, this is still amore preferable scenario to being approved for $1m but not being able to snareahouse at all amid thebuying frenzy last year,Gough says.
They aremoreaccepting of the higher interest rates whereas at the beginning of the year they wereshocked at how theyweresoaring: “Now they realise that is the reality and people do understand inflation and everything.”
Gough also sayspeople haven’t grasped the magnitude of geographical barriers being removed from the firsthome loan price caps, saying anyone earning less than$150,000 can access the first home loan scheme and withalow deposit.
Forastart,thephonesareringingagain–but Kurukuntalasaysfirsthomebuyersarealsocomingback tothemarketfarmoreeducatedandmuchmoresensible.
And while the banks have dialleddown on the CCCFAstringency,Kurukuntala says the strictness over the firsthalf of the year contributed to achange in the cultureofhow first home buyers managetheir finances.
But mortgage broker Solomon Kurukuntala,fromthe Loan Market, who works in firsthome buyer areas in Auckland’s south, says he’s noticed changes in the first home buyer psycheoflate.
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INTEREST RATE PRESSURE
suburbs and also other parts of the country
”If the unthinkable ever happened and they went to something like 12 or 15 percent would Ihaveaway to get through?”
“As abroker Icalled all my firsthome buyers who couldn’t buylast year and told them themarket is changing; nowinvestors areout; now it’s your time to get in and buy.”
But even with the tweaks and the housing market having turned alittle in the favour of firsthome buyers, meaning they can take abit of time to look around and put in offers with conditions attached instead of trying to buyunconditionally at auction, many say new buyers should not taketoo long to make up their minds.
Kurukuntala also thinks firsthome buyers arerelying on brokers morethan banks, and shoppingaround among brokers, to make surethey aregetting theright information andthe best deal.
The rollercoaster housing market changes direction quicklyand not-if-but-when it flips back to asellers’ market firsthome buyers could again struggle to compete.
“That kind of salary gets you about $800,000 of borrowing. That’s anywhereinNew Zealand and $800,000insome parts of New Zealand buysalot –you could get afour-bedroom house in the provinces.”
“They realise they can’t keep spending theway they used to beforeand alsohave amortgage.”
“Some of that is not necessarily because of theallure of the place they’ve moved too, it’s morethat they think they need to have ahouse at all costs.”
If they were entering the market now,with the FOMO having dissipated, they may have decided not to uproot themselves, he says.
“Theyknowverywellthewaythingsaregoingwith interestratesandothercostsiftheywanttospend$1mor morethenthatit’sgoingtoputalotofburdenonthem.”
Caveats to thegoodnews for firsthome buyers is not just high inflation and risinginterest rates but the fact banks aretesting people’s abilitytorepaymortgages on much higher rates.
RupertGough, CEOandowner of the MortgageLab, says interest rates arethe really big problem in thefirst home buyer market because higher rates meanpeople lose asignificant amount of their buying power
“I think therewas alot of despair around ‘I can’t find a house’ ayear agoand nowit’s back to ‘I can’t affordthe house Iwant’. That’s ahuge change.”
Patterson also saysfirsthomebuyers shouldworkout their own mortgage repaymentbudget on very high interest rates, regardless of whatever thebanks’ shortterm stress test rates are, because anything canhappen.
“If you have half amillion dollars of debt,for every percent your mortgagerate goes up,that’s $5000 of additionalinterest.”
MISSED OPPORTUNITIES
That’s because they have to find alot moremoney to pay back theloan.
Some have said next year is notsoon enough because the CCCFA, which has seen banks examining expenses on the bank statements of would-beborrowers with a magnifying glass, has stopped many firsthome buyers in their tracks.
CHANGING MINDSET
“In 2020 and 2021 if peoplegot approved for $1m they wanted to buy ahouse for$1.2m but now the trend is if they’reapproved for $1m they arelookingathousesat $900,000.
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Oncethebudgetisestablished,the Taurangamarketshouldhavesomethingto suit.Thelowerendofthemarketisinthe $600,000to$800,000range,hesays.
Martinwouldpointasinglepersonatalock and-leaveunitincentralTaurangacloseto amenities,andhewoulddirectyoungfamilies toanyofthesuburbsclosetotown.
Ex-pats with $1m to spend are heading home
PHOTO /TED BAGHURST
Evenhighlysought-afterMtMaunganui couldbeanoptionforpeoplewith$600,000 up–it’sstillpossibletobuy astandalone houseinthepriceysuburb,hesays:“There’s alotofvaryingareasoftheMount,it’sa massivemarketplace.”
With interest rates the way they aredebt servicing affordability is an issue as first home buyers generally start from lowdepositsbut want to borrow alot.
PHOTO /G ET TY IMAGES
But he says even though house prices have fallen first home buyers shouldn’t be fooled intoexpecting the market to fall further,saying while that mayhappen the minute the market stops softening it could take off upwards again quickly
FIRST HOME BUYERS | COVER STORY
“Go and find out the factsbecause you may be surprised, you could be alot closer to being able to buy than you think.”
“We’ve gottotake that perspective that we get these periods whereinterest rates maybequitehigh and that can make life abit challenging for ayear or two butthey arenot always goingtoremain at those levels.”
Taurangaagentssaythere’sbeenarise inthenumberofpeopleturninguptoopen homesinthelastfewweekslargelyduetothe fineweatherandcertainpropertiessuchas entrylifestyleonesprovingextremelypopular OneonPanoramaDrive,inWelcomeBay, hadaconditionalcontractonitafteronlya weekonthemarket.Whilethepricecan’tbe revealedyet,thepropertywasseekingoffers over$990,000
“Youcanbuyanywhereforthatsortof price,itjustdependsonwhatyou’regoingto get
TheASB’s chief economist,Nick Tuffley,says he sees two bigpositivesfor first home buyers at the moment one is house prices arelikely to keep falling into the early parts of next year,and the other is the disappearance of the FOMO factor
can’t affordtobuy ahomeshouldnot be swayed by advice from mum or dad or familybut should talktotheirbank or abroker
But Tuffley pointsout therehave always been, and always willbe, cycles in prices and interest rates.
TAURANGA
“IF YOUHAVEHALF A MILLIONDOLLARS OF DEBT, FOR EVERYPERCENT YOUR MORTGAGERATE GOES UP,THAT’S $5000OFADDITIONAL INTEREST.” ECONOMISTBENJEPATTERSON
“Asinglepersonmightwanttobuyan apartmentclosertotownandbehappywith thatandifyouareacouplewiththreekids you’rewantingadifferentconcept.”
“They’reable to buy properties alot moreontheir own terms of howthey go about it and any potential conditions they put on the purchase.”
“Somebanksaregivingquitesubstantial cashincentivesandthingslikethat.”
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“Usually,beforeyou realise it’s happening, you’re locked out again so don’t fall into thetrap of sitting back and waiting.”
“Therearealsofirst-homebuyerswhoare buyingpropertywithotherpeoplesothey areabletoborrowmorebecausetheremight betwoorthreeofthemgoingtogetherina property.There’snoboxyoucanputthem into.
Martinrecommendsasafirststeppeople gotoseeamortgagebrokerbecausethere arealsomanyoptionsnowavailablearound subsidiesanddifferentofferingsfrombanks.
THE TAURANGA first-homebuyermarketis asvariedas itsbudget,saysSimonMartin, branchmanageranddirectorofHarcourts Tauranga.
Buyershavebeentusslingoverentry-level lifestylepropertiesintheregion.
Martinsaysit’sagoodtimetobelooking inTaurangaastherearearoundthreetimes morepropertiesonthemarketthanthere wereayearago
“You’vegotfirst-homebuyerswhoare expatscomingback,whohavebeenontheir OEforfiveorsixyearslookingtospend around$1m,andthenyou’vegototherpeople whoareenteringintothemarketatthelower levelofentryprice.
“Nowifyourbudgetisinthe$500,000s let’ssayeven$500,000to$550,000, you’vegotafightingchanceoffinding something.Hey,itmaynotbeinthebest locationorbestcondition,butyouwillfind somethinginthatrangeandweareseeing moreofthosebuyerscomeoutofthe woodworkatthemoment.”
Tohelpthelargenumberoffirst-home buyersinthemarket,RayWhiteRotorua decidedtorunseminarsforthemonhowto secureamortgage.
TheSouthsideisalsocheaper–afirst homebuyercouldpickupa1970sthreebedroomhouseonafullsiteforbetween $650,000and$700,000,hesays.
PHOTO /F ELIXDESMARAIS
“Iftheyareturninguptoopenhomes, theyareactuallyinthemarketandtheyare activeandthey’vedonetheirworkwitha mortgagebroker.”
That’sashamebecause“onehundredper cent”it’sthebesttimeforafirsthomebuyer tobelooking,Keesomsays.
“That’sjustthebighurdleatthemoment. Peoplewanttobuyhouses,theywanttogo anddothingsbutthebanks-it’sabigwallto climbatthemomentforthem.”
ThefactthatRotorua’shousesare cheaperhasevensurprisedthecity’s agencyheads,whobelieveitoffersalotof potentialespeciallywhenfirsthomescan besnappedupfrom$450,000.
Keesomsaysfirsthomebuyerswouldbe thelargestpoolofbuyersandtheyfallina variedpricerange,from$500,000homes to$900,000.Notallareyoungsters.with Keesomsometimesseespeopleintheir40s tryingtogetinthemarketforthefirsttime.
JohnBellerby "CONSISTENTLYDOINGTHEBUSINESS" yPaulaPaul FIRSTHOMEBUYERS | COVERSTORY Beingabletobuy ahousefor $500k‘unheardofsixmonthsago’
youcangetmuchmorebangforyourbuck thanyoucaninHamiltonorTauranga.”
PrincipalandbusinessownerJacqueline O’Sullivansaidafirst-homebudget inRotoruaisbetween$450,000and $600,000andtheycouldbuyinsuburbs likeMangakakahi,WesternHeights, PukehangiandNgongotaha.
Therewerearangeofoptionsforbuyers andalotmorestockavailable,sheadded.
ROHAMILTON TORUA
ITBOASTSSEVERAL lakes,foresttracks, iscentrallylocatedanditshousepricesare thatlittlebitcheaperthanitsneighbours.
‘Itjustcomesdowntobudgets’
“Ourinquiryhasjustgonethroughtheroof. Peoplecomingthroughthehousesisstarting toliftquitequicklynowandwe’reactually startingtogetAucklandinvestorslookingatit.
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“Whetherornotthey’vecomebackfrom overseasI’mnottoosurebutcertainlymid20sintoaboutthe30sisprobablythevast majorityofthem.”
Andfirst-homebuyersseemtobewell awareofthisasagentsarenoticingan increaseinthenumberofpeopleattheir openhomesoverthepastfewweeksand manyofthemarepeoplewantingtogeton thepropertyladderforthefirsttime.
ProfessionalsMcDowellRealEstate principalSteveLovegrovesaidbuyinga houseinRotoruaforaround$500,000was unheardofsixmonthsago.
“InthelastfiveyearsIdon’tthinkthere wouldbeabettertimeforpurchaserstobe gettingoutthereandbuyingaproperty.”
Forthatpriceitwouldmostlikelybe anolderthree-bedroom,one-bathroom propertythatmightrequireabitof“elbow grease”,hesaid.
Hesaysthecurrentcropoffirsthome buyersismoreeducatedthantheir counterparts10yearsago.Butwhilebuyers knowwhattheywant,gettingfinance approvedisstillthehardpart.
Theyshouldn’tmuckaroundbecausethe tideisalreadyturning,hethinks.
“Generally,thesuburbscanbequitea wide-rangemix.Youcanhavemillion-dollar propertiesinŌwhataandyoucanhave $500,000propertiesinŌwhata–itjust dependsonwhatpartofŌwhatayouwant tobein.”
PammentsaidRotoruaisafantasticarea forfirst-homebuyers.
“Thishappenedfouryearsagojustasthe firsthomebuyersstartedtogo‘maybewe shouldstartbuying’andthentheinvestors starttocomeinandstarttopickthegood propertiesoffandthentheystarttomissout.”
Thesesuburbsarenearthehospitaland themajorityarefreeholdproperties.
Aslightdropinhousepricessince thebeginningoftheyearmeansthreebedroom,one-bathroomhomesina numberofitssuburbsarenowwithinreach.
ABIG MOTIVATOR forfirsthomebuyers intheHamiltonandwiderWaikatoregionis beingclosetofamily,saysMarkKeesom, principalforRayWhiteHamiltonCity. “Outsideofthat,itjustcomesdownto theirbudgets.”
LovegrovesaidareassuchasHillcrest, WesternHeightsandŌwhataareallgood placesforfirst-homebuyerstolook.
“Glenviewisthetraditionalsuburband thoseothersuburbsarestartingtogrow quiterapidlyaroundit.Alltheroadinghas beendonethroughHamiltonandthey’re goingovertotheSouthsideofHamilton now,sothenorthhasdoneallitsgrowthand everyoneisgoingSouth.”
PHOTO /FIONAGOODALL
HarcourtsRotoruadirectorWayne Pammentsaidtherearemorefirst-home buyersthaninvestorslookingatthe momentandthere’splentyofstockto choosefrom.
ThesouthsideofHamiltonis“about toexplode”withallthenewsubdivisions openingup,hesays.
Theyusuallyhavebetween$450,000 and$700,000tospend,whichcouldget themreasonablytidythree-andfourbedroomhomesinmostsuburbswith theexceptionofthemoreexclusiveareas suchasSpringfield,Otonga,Lynmoreand Glenholme.
“Ifwecompareagainstourneighbouring regionsandcities,it’sgotgoodvalueand goodjobprospects.Youwouldhavetosay
Glenview,Melville,Dingwallprobablyoffer thebestbangforbuckforfirsthomebuyers, hethinks
Findouthowmuchdeposityou need,howto qualifyfor amortgage, thedifferentsalesmethods,buying new,andthelegalprocess. We cover allthemainquestions andissuesthat first-homebuyerswillencounteron thejourney.
BY DIANACLEMENTguide to The
Discoverwheretostartandhowto buywith OneRoof’scomprehensive guide.
ithproperty pricesfalling, moreand morefirsthome buyers willachieve theirdreamoverthenext 12 to24 months,picking upthekeys totheir veryownhome.It’sdo-able withthe rightknowledgeandattitude.
We’vecmpiled aseriesofarticles coveringthehome-buyingjourney fromdreamto reality.Thisguide coverseverythingfrom:howtosave for adeposit,tosettlementday,when thehomebecomesyours.
Buying your first homeis abig step. Butevery yearthousandsofNew Zealandersmanagetodo it and becomehomeowners.
OneRoof buying your firsthome
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Mostfirst-home buyerstakeouta 30-yearmortgage becausethe repaymentsare lowerthanshorter mortgageterms However,thelonger themortgageterm themoreinterestyou willpayintotalover thelifetimeofthe loan.
How much you canborrow fora mortgage comes down tohow much the bank believes you can repay comfortably
The first step in working out howmuch you can affordand how much the bank is likely to lend you is to crunch the numbers to determine howmuch you can affordtospend on ahome. This helps you focus on the right housesin your price range.
How much canIborrow?
Makesureyou calculatethe upfront costs of buyingahomesuch as lawyers’ fees and LIMs, and alsonew ongoing costs such as council rates, body corporatefees andhouseinsurance.
easier than one. If you are applying for ajoint mortgage (with apartner,family member or friend) the bank will calculate how much it will lendyou 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
Most buyers need 20% of thehome’s purchase price as adeposit in order to borrow therest as amortgage.With a brand-new home,the deposit is 10%.If youqualify for schemes such as Kāinga Ora’s FirstHome Loan andFirst Home Partner,itispossibletobuy with a5% depositprovidedyou meet certain income and propertyprice thresholds.
Thingstoconsider
Ahome-buyingbudgettakesintoaccount howmuchyouearn,howmuchdeposit youhave,thecostsofbuying,andwhat yourone-offandongoingexpenseswillbe afteryoumovein.
Often, first-home buyerswill seek to supplement their income to helpcover therepayments:
Using KiwiSaver
You’ll need to learn some of thejargon:
● Debt-to-income ratios (DTIs): some banks will onlylend you a certainmultiple of your income, such as six timesyour salary
When buying your first home, it’scritical to set arealistic budget.It’s thefirst step in working outhow much youcan affordand how much thebank is likelytolendyou
● Having atenant, flatmate or boarder: If youplantolivewith aflatmate in yournew home,you mightbeable to count some of the rent as income in the mortgage calculation. Be aware that lenders won’t count theentirerent paid to youasincome.
Paymorethan theminimum repaymentif youcan
Ifyoucanafford to,it’sworth budgetingforhigher repaymentsora shorterloanterm(25 or15years).
● Loan-to-value ratios (LVRs): the percentage of theloan that the bankiswilling to lend. It adds up to 100%. So if the LVRis80%,you needa20% deposit.
When banks assess whether they will lend to you, they use atest rate which is several percentage points higher than the actual interest rate. This helps ensureyou can affordthe mortgage if interest rates goup. It is still agood ideato create apersonal budget based on your actualexpenses.
Speak to thebank or a mortgageadviser Yourbank’smobilemortgage manageroranindependent mortgageadviser(broker)canhelp youdothenumbers.Theservice isusuallyfree.Yourmanager oradviserwillgothroughyour financesandadviseonissuessuch asconsumerdebt,andsuggestways toincreasetheavailablesurplus youhaveformortgagerepayments.
Supplementing income to affordrepayments
● At least $400 for each building inspection
Whatare the upfront costs and legalfees?
● CreditContracts and Consumer Finance Act (CCCFA): alaw thatrequireslenderstoact responsibly.Itcan, however, restrict how muchhome buyers can borrow because banksare required by lawtoensurethe loan is affordable forthe home buyer
Tocalculatehowmuchyouhave foradeposit,adduphowmuchyou havesavedalreadyinKiwiSaver,other investmentsandinthebank.Youmaybe abletoborrowmoneyfromthebankof mumanddad,or,ifyou’relucky,receive agiftthathelpsyougathersufficient deposittobuy
● $1000 to $1500 forconveyancing/legal fees
Once you’ve worked out how much deposityou have, youwill have an indication of how much youcan afford to payfor ahome.Itisimportant to understand howmuch homes are sellingfor in theareayou areinterested in moving to.Youcan find sale prices for recently sold houses, estimates based on sales in the area and alsouse our house prices report updated monthly on OneRoof.co.nz.
Whatyou canaffordnow mightchange in thefuture
● Good an additional 3%, although some employers use a“total remuneration” clause in the employmentagreement to avoid paying this.
● You’ll receive the annual government contribution of up to $521.
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1 FIRST HOME BUYERS GUIDE
Thetotal amount of money you need to buy ahome is more than just the deposit. Upfront expenses forbuying ahome include:
● Buying as asingle or acouple: Buying with two incomes is usually
Most banks have affordability calculators, which crunch your income andspendingtodetermine how much youcan comfortably payeach fortnight or month.
Saving for ahousedeposit requires that you spend lessthan you earn. Most firsthome buyers save with KiwiSaver.There aremany advantages to this:
● Youmay also qualify for aFirst Home Grant. The grantranges from $3000 to $20,000 depending on the number of yearsyou’ve been saving,whether the home is existingorbrand-new,and if you’reasingle or acouple, buying.
● Youwon’t be tempted to dipinto your savings for everyday spending
● SETTING A BUDGET
Yourmortgagealsocan have hiddencosts suchaslendersmortgage insurance (LMI)/LowEquity Premiums(LEP)ifyourdepositis lessthan20%.
Movinginalsocostsmoney.Thereare removaltruckcostsifneeded,utility connection feesandyouwill needtobuy furniture andfurnishings(unlessyou alreadyownthese).
Additional costs
● Around $300foreachLIM(Land InformationMemorandum)
The costofbuying ahomedoesn’t stop withmovingin. Youmayneedto budgetfor renovationcosts.
If ahousepurchasefalls through andyou havetostartagain,you mayhavetopaymorethanoncefor buildinginspectionsandlegalfees.It’s unfortunate,howeveryourbuilding inspectorand/or lawyercansaveyou frombuying alemon.
Ongoing expensesincludefortnightly ormonthlymortgage repayments, utilitiesbills,councilrates,home insurance,andmaintenance.Inmany apartmentcomplexesyouwillhave body corporatefeesto pay, which do atleastcoveryourmaintenanceand insurance.
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How long it will take you to save for a deposit on your first home will depend on:
Toolstohelp yousave
With abrand-new home, thedeposit is usually 10%. Those who qualify for schemessuchas Kāinga Ora’sFirst Home Loan it could be 5% if youmeet certain incomeand propertyprice thresholds.With First Home Partner, the deposit will vary according to how much aparticipating lender is willing to lend to you andthe percentage contributionKāinga Ora will make towards purchasing the homewith you.
How long will it take?
● How much disposable income you have to save after necessitiesare paid for
To set your savings target for the deposit, work out approximately what you expect your first hometo cost at the time when you’reready to buy.With that figureyou can work out howmuch your 5%, 10% or 20% deposit will be in dollar terms
If your first home is likely to cost $600,000, a5%depositis$30,000, a10% deposit is $60,000, and 20% is $120,000. For an $800,000 house, that’s $40,000, $80,000 and $160,000. You’ll probably need another$5000 to $10,000 for your purchase and moving costs.
Trygaming yourself to spend less and savemore. That might encourage you to thinkbeforespending unnecessarily If youwantyour budget to succeed, always makesureyou give yourself afixedsum of “fun”moneyeachpay packet to spend on whateveryou want, then manage the rest carefully
SAVING FORA DEPOSIT
● Increase your KiwiSaver contributions. If you’re already saving all you can, great. If you needsome encouragement, you could increase your KiwiSaver contributions because it comes out of yourpay before you receive it.You can choosecontributionsrates of 3%, 4%, 6%,8% or 10%. Then just adjust yourbudget aroundyour newnet pay.Ifyou can’t committoputting away moreinKiwiSaver because you might need it in emergencies, at least set up automatic payments from your bank accountintosavings.
Budgeting is essential for anyone who is serious about saving for afirst home. It will help you prioritise spending in order to reach your goal faster
Topsavingstips
If you’ve decided to buy yourfirst home, you’ll need to save fora depositand the sooner youstart the better.Hereare some practical tipstohelp you startsaving
Earning moremoney makessaving for adeposit easier.Italso increasesthe amount you can borrow
● What the home willcost
AllKiwiSavers receiveagovernment contributionofupto $521.43eachyearon thefirst$1042.86saved. Ifyou’reemployed,you shouldalsoreceivea contributionfromyour employerequalto3% ofyourgrossincome Anotheradvantageof savingforahomeloan withKiwiSaverisyou can’tbetemptedtodip intoyoursavings.
How to createabudget
Saving for ahouse deposit is not easy, but the sooner you have adeposit, the sooner youcan buy
Thereare many budget apps on GooglePlay and theApp Store. Make surethe one you choose works for New Zealand. Some budgeting apps such as Booster’s mybudgetpal (free) and PocketSmith (paid) download your bank transactions automatically,which makes budgeting quicker
Using Kiwisaver
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2 FIRST HOME BUYERS GUIDE
The banks may be able to split your pay into various accounts as it comes in, which makes saving easier
Next, compareyour expenses with your earnings.
Once you know how much deposit you need, dividethat by the sum you plantosave weekly or monthly,and from this you canworkout how many years it will taketoget your deposit together
Start by searchingOneRoof to get an ideaofhow much you’ll pay for a home in yourcriteria.
Budget apps and spreadsheets are available on the Internet. Sorted has a simple budgeting tool. Most banks also have tools to help you budget.
● How much deposit you willneed, and
● If you arespending morethan you earn: you will need to cut costs.
If you can, savingmorethan the minimum deposit makes sense. With a
All the banks have mortgage calculators, which give you an indication of how much your mortgage will cost each fortnight or month. Sorted.org.nz also has amortgage calculator.Some banks have goal planners.
Theverybestplaceto keepyourfirst-home savingsisinKiwiSaver becauseofthebenefits forfirst-homebuyers. You’llneedtosavefor atleastthreeyearsin KiwiSaverbeforeyou canuseittobuyyour firsthome.Togetthe mostoutofKiwiSaver youneedtosaveforfive yearsormore.
Afterthreeyears youcanwithdrawallof yoursavings,except for$1000,tobuyyour firsthome.Saverswho qualifycanalsogeta FirstHomeGrantofup to$5000perperson foranexistinghome,or $10,000forabrand-new home.That’sdoubled iftwopeoplesuchas acouplearebuying together
Decreasingwhatyou spend now can pay off.Ifyou’relike most New Zealanders, you’ll spend morethan you needto, and smallexpenses addupvery quickly
● Payoff consumer debt. If you’re paying interest on storecards, credit cards, hire purchase, or otherdebts, it’s slowingdown your savings. Pay off thehighest interest debtfirst if you can. Paying downconsumer debtisimportant if you’regetting ready to buy.Any debt youstill have, including student loans and buy now pay later, willreduce the amount you can borrow because youhaveless spare money to payyour mortgage. If youcan’t increase payments on the existing debt as wellassave for a deposit,then at least stoptaking out new debt. If youcan’t trust yourself, cut up your credit andstorecards.
● If you break even each month: you may have enough income to cover mortgage repayments.
● Ask parents forhelp. Some parents areinthe financial position to help
First, download your bank account, credit cardand loan statements for the past three months and then categorise the spending under headings such as: food, utilities, rent, giving, saving, and fun money
● If you have asurplus income each month: this is agood place to be, but you might still need to reduce your outgoings to reach your savings goal.
Work outhow much youneed to save
higher deposit, you will sometimes get alower interest rate.Also, because you’reborrowing less, your regular interest payments will be lower.They’recalculated on the outstanding mortgage balance.
● Find an additionalsourceofincome. Somesaversget asecondjob,or aside hustle to makeextramoney.Youmight alsowanttoselloff someunwanted belongings.Doingsocouldadd afew thousanddollars to yoursavings,but alsoteachyounot to confuseneeds andwantsinthefuture.
● Shoparound forbetterdealson
● Getapay riseorswitch jobs.You canincreaseyourincomebyseeking apromotion,orswitchingemployers. Earningmoreatworkisn’talways easy.Lookatyourskillsetthentalk toyourbossorhuman resources departmentabouthowyoucanmove upintheorganisation.Ifthereare nopossibilitieswithinyourexisting organisation,itmay be timetomove.
● Reduce yourday-to-day expenses. Makingsavings is easierthanyou think. Take areallyhardlookatyour bankandcreditcardstatements.Most peoplehavemoreentriesforlunches, coffees,takeaways,and restaurants thanthey think.Take alonghardlook atyoursubscriptionsfromsoftware toNetflix.Cutthemout,orlimitthe numbertomakethem atreat.
● Learnhow to savemoneyon groceries. Oneofthe bigexpenses whereweconfusewantsandneeds isoursupermarkettrolley.Planyour meals,learnto cook,andaskyourselfif everyiteminyour trolleyisa necessity. Manyaren’t.Comparepricesbetween mainstreamsupermarketsandother suppliers.Youmay havea Chineseor Indian supermarketnearyou, acheap fruitandvegetableshop,or afarmers market.Savingscanbeconsiderable.
phone. Ifyouhaven’tdonethisfor12 monthsmostlikelyyou’reonan old plan,whichcostsmorethanthelatest onebeingofferedto newcustomers.
if y. n
adepositcouldbeeasierifyoumove backhome,takeinflatmates,orget acheaper rental.It’snotforeverand canspeedupyourhomepurchase considerably.
● Speaktoanaccountant,mortgage adviser(broker)orfinancialadviser earlyon.Theycangiveusefuladvice.
yourpower, broadband andmobile
Ifyou haven’t done this for 12
andmaybeabletolendorgiftyou someofthedeposit.
● Watch living costs. Renteatsupa huge chunkof yourincome.Saving for
OneRoof.co.nz 13
$ $
Whenassessing yourabilitytopay, thebankwilltakeinto accountexpenses thatyoudidn’thave beforebuying.They includecouncilrates, maintenanceandhome insurance,whichis compulsoryifyouhave amortgage.
Acommon tactic for homebuyersis to split amortgage overmorethan one fixed-rateterm, and to keepaportion on afloating rate, which allows extra repayments, paying down the home loan faster
Applying foramortgage
3 FIRST HOME BUYERS GUIDE
With table loans, you pay afixedamount each fortnight or month. In the beginning, most of the payment is interest, but as the balance slowly reduces, agreater portion of your payments goesto pay off the capital.
Floating versus fixed interest rates
● Arecordofoutgoings and debts
Reducing balance loans
Youcould delay your purchase. That allows you to build up abiggerdeposit and/orincrease your income, both of which allow you to borrow more.
Starting out
Differenttypes of homeloans
Howmuch shouldyou beearningto payoffyour mortgage?
If youdon’t abank or can’tget as much as you need,there areother options.
GETTING A HOME LOAN
The first hurdletopassfor buyers is thebank’s affordabilitytest, which considers whether the surplusleftover onceyour expenses arededucted from your incomeissufficient to cover mortgagerepayments.
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interest payments component.
Afloating(variable) interest rate can rise or fall at any time, affecting your repayments.Afixedinterest rate(for anywherebetween one andfive years) ensures that the interest rate youpay on your loan is fixedfor theentirety of that period.Your repaymentsdon’t change until thefixed-rate period expires.
● Proof of income
Areducing loan is similar,but has higher repayments at the beginning because you’repaying moreofthe capital than a table loan.As the amount outstanding to the bank goes down, so too does the
How much you canborrow forahome loan depends on the size of your deposit. If you’rebuying an existing property, you’ll usually need a20% deposit. For abrand-new home, that percentage drops to 10%. Buyers who qualify for the government’s First Home Loan scheme only need a5%deposit.
If you’reunsure about which home loan options arebest foryou,your mortgage adviser or manager can help identify the most appropriate for your financial circumstances.
Home loan eligibilitycriteria Whenbanksassessyourloan,they wanttodetermineifyouareagood risktolendto.UndertheCredit ContractsandConsumerFinance Act(CCCFA),banksandother lendersmustlendresponsibly Cuttingbackyourspendingsix monthspriortoapplyingfora mortgagecanhelpyourapplication considerably Ingeneral,yourhomeloan eligibilitywillbeassessedonthe following: ● Income ● Expenses(bothessentialand non-essential) ● Consumerdebt(including studentloans) ● Yourcreditrecord ● Whetheryou’reacasualor permanentemployee,orselfemployed Consumerdebt,includingstudent loans,reducestheamountyoucan borrowbecauseanyrepayments aredeductedfromyouravailable income.Youshouldalwaysbe upfrontwithyourmortgageadviser (broker)orbankmortgagemanager aboutyourdebtswhenyou’re applyingforamortgage
Thehome loan application process
● Evidence of yourdeposit
● Bank statements from thelast six months
Tableloans
As well as choosing the most appropriate type of home loan for your circumstances, you also need to consider floating versus fixed interest rates.
It costs the same to completethe application witha mortgageadviser or thebank’s mobilelendingmanager as doing it online. They can give you a clear pictureofwhattoexpect from your lender beforeyou sign the mortgage documentation
Mortgage calculatorscan give you an indication of how much you may be eligible to borrow
Revolving credit home loan
There’snomagicsum youneedtoearntobe eligibleforamortgage It’slessabouthow muchyouearnand moreaboutbeing prudentwithyour finances.
● Proof of address.
Asmall proportion of buyers who can’t borrow from thebank anddon’t want to wait borrow instead through “non-bank lenders” such as building societies and finance companies.Amortgage adviser can arrange this. But the trade-off is that usually you’llpay ahigherinterest rate for loansfromnon-bank lenders.
Thereare different types of homeloans. The most common ones are:
Most people needtoborrowtobuy ahome. The mortgage (also known as ahome loan)combined withyourdeposit make up the purchase price of the property.Inmost casesyou’ll need to have 20% of the purchase price of the house saved as adeposit beforethe home loan application process starts.
qualifyto borrowfrom
Beforeyou applyfor ahome loan, you’ll need to getsome documentationtogether Regardless of whether you’regoing direct to abank as your lender orgoing through amortgage adviser you’regoing to need the following:
● Acopy of your photo ID, and
Evenifitlookslike youcanaffordto borrow,sometimes thebanksdecline That’sbecausethey determineaffordability usinga“testrate”, whichisseveralpercent higherthantheactual interestrateyou’llpay. Thereasonforthisis thatthelenderwants tostress-testyour financestoensureyou canstillaffordtopayif mortgageratesrise.
If going directly to thebank rather than via amortgage adviser,make sure you ask thebank aboutthe interest rate, its
Arevolving credit home loan is like a giant overdraft.Yousave interest when your wages gointo the account each month becauseit reduces the outstanding balance.Youneed to be very disciplined for thissort of home loan to work, but it’s an option forthose who arefinancially prudent.
Thegeneralruleis thatyouwillneedto earnsufficientmoney tocoverrepayments afteryourexpenses.
Mortgage /income calculatortools
● Banks’mortgagemanagersand independentmortgageadviserscan helpyou navigatetheprocess
● Youcanonlyborrowasmuchasyour depositandincome/expenseswill allowyou
● Pre-approvalisn’t aguaranteethat youcanborrow.It’s anindicationand expiresafteraperiodoftime
Homebuyersoften applyto getpreapprovedby abanktogetanideaof theirpotentialbuyingpowerandprice range. Thisgivesyou more confidence toshoparoundforaproperty.Itshows to realestateagentsand vendorsthat youareaseriousbuyer.
Mortgage adviserscanworkwithyou topickthemostappropriatealternative lenderforyourpurchase.
Typicallyyouneed14daystothree weeksforthebanktoassessand approveyourhomeloanapplication. Makecontactwiththebankormortgage advisermuchearlierthanthat.
Thingstokeep in mind when ahgetting ome loan
● Proofofincome(suchasyour balancesheet profitandloss,orcash flowstatements)
Pre-approvalisanindication
ofwhatyoucan borrowifthe bank approvesof thepropertyyouwantto buy.Ifinterestratesrise,loan-to-value ratios(LVRs)andother ruleschange, oryoudon’tmanagetosettlewithin thepre-approval period, youwillmost likely need to reapplyfor pre-approval. Thisis somethingtobevery waryofif buyingatauction,goingunconditional onanyproperty,orbuyingoff-the-plan whenthebuildcouldtakelongerthan expected.
Itcansometimesbehardertoget amortgageifyou’reself-employed becausethestandardeligibilitycriteria ismoresuitedto employees.Ifyou don’tqualifyforahomeloan froma bank,mortgageadviserscan placeyour business withalternativelenders.That usuallycomesatthecostof ahigher interestrate.
First-homebuyers canfindthepurchase process daunting. Having amortgage adviserinyourcorner takes someofthe uncertainty out. They’reexpertsintheirfieldand workfor you.
Mortgageadvisersalsosaveon legworkbecausetheyknoweach bank’scriteria,andtheycan argue yourcaseif yourloan is borderline.Theycan alsonegotiateconditions suchasguarantees.If youhaveconsumer debtthat’sstandingin yourwayofgettinga mortgage,mortgage adviserscanhelp restructure thatdebt orgiveadviceabout payingitoff faster.
As aself-employedhomeloanapplicant, you’regoingtoneedthefollowing ontopofthestandardsupporting documentation:
F l O a t i n
FIXED RATE
Gettingpreapproval homforyour eloan
Contact amortgageadviseror your lenderofchoiceanddiscussyour circumstanceswith them.Theywillbe abletoassessyourmortgageeligibility and tellyouwhatthey’rewillingto lend yousubjecttoconditions.
Gettingpre-approvalcostsnothing. Nor doesitlockyou intothelender.
%
Mortgageadvisersare ago-between, workingonyourbehalf.Theycan adviseyouonhowtoimproveyour abilitytoborrow,shoparoundfor you,andnegotiatewiththebanksand otherlenders.Theserviceisfreeifyour mortgageisplacedwith abank.Ifyou don’tfitthebankcriteriaandborrowfrom anon-banklender,youwillneedtopaya feeforthis.
Applying fora home loan whileyou’reself-employed
Ifyoualreadyhave apropertylined up,thenit’s agoodideatogetyour KiwiSaverwithdrawalandFirstHome Grantapplicationsinatthistime. As aruleofthumb,FirstHome Withdrawal andFirstHome Grants cantake anywherebetween 20 days andfourweekstosortout.Sogetthe paperwork togetheratthesametime aschoosing alender.Ifyou’reunsure abouttheapplications requiredforyou to accessyourKiwiSaverfundsfor buyingyour firsthome,orifyou have questionsaboutyour owneligibility, OneRoof has aKiwiSaver firsthome buyer’sguide.
Theadvantages of usinga mortgagebroker
● Makesure youbudgetin expenses such as councilrates,maintenanceand insurance
● IRDdocuments (GSTandIR4 returns).
● Self-employedapplicants need additionaldocumentationandmay havetoconsideralternativelenders
KiwiSaverFirst Home Grantconsiderations
fees,yourabilitytomakechangesto your mortgageonceset up,andwhat happens if youbreak afixed-rateterm. Youare not limitedto borrowingfrom your ownbank.Shop around.When competitionis highbetweenbanks, youcanoftennegotiatetheinterestrate downor getthe loanapplicationfees reduced.
How long does applying fora home loan take?
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TheGovernment contributes50cforevery $1yousaveeachyearupto $1042.86.Thatmeansup to$521.43offreemoney, whichthencompoundsand growsovertime,boosting yourdeposit.Theannual cut-offdateforKiwiSaver contributionsisJune30.
● Havesaved at least 3% of your total income into your KiwiSaver for a minimum of threeyears
● KiwiSaver contributionstatements
If youhavefound ahometobuy already, you willalsoneed:
BecauseKiwiSaveris lockedin,it’sagreatwayto stopyoufromdippinginto savingswheneveryou’re tempted.
Both First Home Withdrawal and First HomeGrant schemes can boost your deposit providingyou have been saving into KiwiSaver for at least three years andpreferably five or more.
● Apply once you findaproperty and have asigned sale and purchase agreement.
Underthe First Home Grant, firsthome buyerslooking to purchase an existing home areeach eligible to receiveup to $1000 peryearfromtheir three-year savings mark,capped at $5000. Thoselooking to buyanew home or landwillqualify for $2000per yearupto$10,000 each.Where two people arebuying the house andboth qualify,the grant is doubled.
Buying afirst homeisn’t easy. KiwiSaver andother government schemes canhelp.The earlier youlearn aboutthem, thebetterprepared youcan be to use them.
Using your Kiwisaver
Buying anew build withthe FirstHome Grant involves afew more steps.For example, for aproperty to qualify asa new-build,itmust have received itsCode Compliance Certificate (CCC) within six monthsof the date of yourFirstHome Grant application.
If you’rebuying aproperty where you have to make progress payments at specificpoints during the build, then any funds that you’reeligible for under the First Home Grant must be held in trust or escrow by an independent organisation and not the developer
Using your FirstHome Granttobuy land
● Chooseahomethatfallsunder thecurrentpurchasepricecapfor thearea
To qualify for the First Home Grant on land you need to apply and getpre approval. Make sureyou:
● Have afixedprice building contract showing the cost of construction and estimated start and finish dates
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of up to $10,000 for asingleordouble that for twoormorepeople buying, providing you meet the eligibility criteria.
● Photo ID
● Asettlement date or adate when the money is needed to pay the deposit, which is at least four weeks away
Using your FirstHome Grantonanew-build
Theapplication process
Getalawyerinvolvedassoonaspossible New-buildcontractsveryoftenhave clausesthatstandardsaleandpurchase agreementsforexistinghomeswillnot have.Itisbesttogetalegalopinionon thesaleandpurchaseagreementbefore yousubmityourFirstHomeGrant application.
● Earn less than $95,000for asingle or $150,000for twobuyers or an individualbuyerwithone or more dependants
What youwanttobuy must fallunder the purchaseprice capfor theregion you live into be eligible forthe First Home Grant.Thosecapswill also vary dependingonwhetheryou’re buying an existinghome or anew home Make sureyou apply early to ensure your grant is approved in time. The First Home Grant is paid out either as a deposit or at settlement.
● Submit yourapplication online at least four weeks beforesettlement
4 FIRST HOME BUYERS GUIDE
Schemesthatcan contribute toward your deposit
Thereare two ways to apply foryour First Home Grant:
● Other supporting documentation relevant to your purchase.
KiwiSaverisagreatplace tosaveforyourfirsthome AsaKiwiSavermember youcancontribute3%, 4%,6%,8%or10%of yourbefore-taxpaytoa providerandfundofyour choice.Youremployer shouldcontribute3%as well.Youcanalsomake regularorone-offvoluntary contributionstoKiwiSaver. Ifyou’reunemployedorself employed,youcanmake voluntarycontributions.
● Supply the plans for building work or relocation related to thelandthat you arebuying
Purchaseprice caps
It’salsopossibleforfirst-homebuyers tousetheirKiwiSaverFirstHomeGrant topurchaselandtobuildapermanent house.Buyersneedtoliveinthehome foratleastsixmonthsfromtheissueof theCCCforthehouse.TheFirstHome Grantisthesameasforanew-build.The FirstHomeGrantruleshaveacapon themaximumcostofthelandandhome combined.
● Proof of income
● Apply for pre-approval beforeyou decide on aproperty to giveyou adegree of certainty about your eligibility; or
The applicationprocessstarts online via Kāinga Ora’s KiwiSaver portal. For preapproval you will need thefollowing documents to hand:
● Include asigned sale and purchase agreement
The FirstHome Grant is overseen by Kāinga Ora and provides up to $10,000 per coupletowards the purchase of an existing first home or $20,000 fora brand-new home.
Find out how theKiwiSaver First Home Withdrawal andFirst Home Grant schemes can boostthe deposit and makeit easier for youtobuy your first home.
● Acopy of the agreement or asigned sale and purchase agreement or a contract fora new build
FIRSTHOME BUYERGRANTS ANDKIWISAVER
Youcan only receive the First HomeGrant once. That includesits predecessors, HomeStartgrantor KiwiSaver deposit subsidy
How does theFirst Home Grantwork?
Additional considerations forfirst-timebuyersof new-builds
If you have any questions about the First Home Grant, speak to amortgage adviser (broker) or amobile mortgage manager, who can help younavigate the application process.
The KiwiSaver rules allow first-home buyers, or those in asimilar position, to withdraw all but $1000 from their KiwiSaver to buy afirst home.Youmay also qualify for aFirst Home Grant
Yoursavingsand employer/government contributionsareinvested byyourfundproviderand growovertime.Typically,the returnishigherthanyou’d getinatermdepositand youpaylesstaxthanyou wouldonastandardsavings account,meaningyour moneygrowsfaster
To be eligible youneed to:
TheeligibilitycriteriaforFirstHome Withdrawalisthesameas theFirstHome Grant,except there arenoincomeorhouse pricecaps.
● Thegrowthyou’veearnedonyour KiwiSaverfunds
● Anyfeesubsidiesyou’ve received
● FirstHomeLoan. TheFirst Home Loanscheme runbyKāingaOra enablesqualifyingbuyersto purchase ahomewitha5% deposit.KāingaOra doesn’tprovidethedeposit.Instead, itprovidesaguarantee,enabling your banktolendmoretoyouthan itsnormallendingstandards would otherwise allow. LiketheKiwiSaver FirstHomeGrant,thereisan income capandaregional housepricecap.
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Additional optionsfor first homebuyers
Aswellasanexistinghome,theFirst HomeWithdrawalcanbeusedtobuyanewbuild,landyouintendtobuildon,ortobuild ahomeonmultiple-ownedMāoriland.
Ifyou’reeligibletomake aKiwiSaver withdrawaltowardsyourfirsthome purchasethen you’ll beabletowithdraw
KiwiSaverFirst Home Withdrawal scheme
● Certified photoID
● KāingaWhenuaLoan Scheme. The KāingaWhenuaLoanSchemerun byKāingaOra and Kiwibankhelps Māoribuildor relocatehomesonto ancestralland.Ifyou’reeligiblefora KiwiSaverFirstHome Withdrawal, youcan alsoputanyfundsobtained that waytowardsthepurchaseofa KaingaWhenuaproperty.
TheKiwiSaverFirstHomeGrantis justoneofthemanyoptionsfirst-home buyerscanaccesstohelppurchase theirfirsthome.Thereare anumber ofotherschemesforfinancingpartof thepurchasepriceorprovidingmore affordablehomes.
● Yoursolicitor’strust accountdetails
Applying fora First Home Withdrawalgrant
● FirstHome Partner is another governmentschemethatallows qualifyingbuyerstoshareownership of abrand-newhomewithKāinga Ora.KāingaOrabuysupto25%ofthe propertythatyou’reinterestedin, and becomesaco-owner on thetitle.Over time,thehomeowner willeventually buyout Kainga Ora’sshare.
Whatcan youwithdraw from yourKiwiSaver?
Beforeyouapplywithyourscheme providerfor aKiwiSaverFirstHome Withdrawal,youwillneedthefollowing readytogo:
● Acopyofthesaleandpurchase agreement foryour property
Yourmortgagebrokerormobile mortgagemanager willconfirmthe amountthatyou needtowithdraw. Once youhaveapplied,yourscheme providerwillliaise withyourlawyer. Themoneyispaidbytheproviderinto your lawyer’strustaccount.
● Governmentcontributionstoyour KiwiSaveraccount,and
● KiwiSavercontributionsyou’vemade personally
Someprevioushomeownersina similarpositiontofirst-homebuyers mayalsoqualifyfortheFirstHomeGrant andFirstHomeWithdrawalschemes.
thefollowingprovidingyouleavebehind $1000inyourKiwiSaver savings account:
TheFirstHomeWithdrawalschemeenables first-homebuyersand othersin asimilar financialpositiontowithdrawallbutthe last $1000ofKiwiSaverfundsfor thedeposit ortowardssettlementontopof anyFirst HomeGrantentitlement.
● KiwiBuild. Thisis aprogramme toencouragedevelopers,iwiand councilstocreateaffordablehomes withinpricecaps.KiwiBuild homes aretypicallycheaperthanequivalent homesonthe openmarketandare verypopular.Allnormal KiwiSaver criteriaapplyforthe FirstHome Withdrawal andFirstHome Grant schemeson aKiwiBuild home.Tobuy one, youneedtobechosen by ballot. Moreinformationcanbefoundat www.kiwibuild.govt.nz
Theyinclude:
Whatdoyouneed to make aKiwiSaverFirst Home Withdrawal?
● KiwiSavercontributionsyour employerhasmade
● Certified proofofaddress
Freehold: Most traditional homes in New Zealand arefreehold whereyou own the house and the land it sits on.
● 10% Deposit. You’ll typically only pay a10% deposit on anew home instead of 20% requiredfor existing homes under the ReserveBankof New Zealand’s loan-to-value ratio (LVR) rules.
Therearethreemain propertytypesin NewZealand: Freestandinghomesare generallythemostsought afterinNewZealandand sitonlargerpiecesof land,whichmeansthey costmore.Thesmallerthe sectionthelowertheprice, whichiswhytownhouses willusuallybecheaper thanastandalonehome andapartmentsandflats thecheapest
Whatare bodycorps?
All owners in unit title developments, suchas apartment buildings, automatically become members of thebody corporate.
Before you gettoo far into your house-hunting journey,find out how much you canaffordtopay for ahome and how much you canborrow by checking with your bank or mortgage adviser(broker).They will look at your savings, salary,spending,and the variouscosts associated with buying homes such as lawyers’ fees and moving costs. Banksalso have useful calculators on their websites thatcan give you ageneral indication of how much you mightbeapproved to borrow
This hassomeadvantages forfirst-home buyers.
FINDING THE RIGHT PROPERTY
Workingout prices
Think of howyou could compromise. Forexample, you mightbe able to movefurther out of town where homes arecheaper if thereisgood public transport.
You’ll almostcertainly need to make compromises and start your journey with amoremodest home. That might be an apartment or terrace house to begin with beforeyou can trade up the property ladder to astandalonehome in your suburb of choice.
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Ask yourself questions such as:
● Brand-newhomes come with a guarantee against defects,and usually they won’tneedmuch in the wayofmaintenance for thefirst sevento10years.Thiscan be abonus in theearly years when mortgage repayments can be adrain on finances.
Gettingstarted
Leasehold: is where you own the building, butnot theland.Youpay annual ground rent to the landowner Leasehold is common overseas,but apart from someapartment buildings isn’t oftenseen in New Zealand. The lease may be fora fixed number of years, such as 100,after which youno longerhave theright to havea home on it.Orthe lease can be in perpetuity The shorter the lease and the higher the groundrent, thelowerprice thehome will fetch when sold.
Buying off theplan
FLATS AND APARTMENTS areusuallyhomesin multi-unitblocks orhighrise buildings.
Freehold,leasehold or crosslease?
● Some homes bought off the plan can be alteredduring the build.
● Whereare the nearest parks, beaches or other recreational areas?
FREE STANDING HOMES arethemostcommon stylesofhomesinNew Zealand.Theyare detachedandsiton theirownsection. TOWNHOUSES arehomesthathave theirownexittooutside, butareusuallyconnectedto theneighbouringproperty. Usuallyit’saterraceof townhouses.
Your lender will take into account the body corporate fees when assessing how much youcan afford to borrow.Don’t letbodycorporate fees putyou off buying.You’d needtospend moneyeachyear on maintenance of ahome,somay find the cost of owning is little different whether thereisabodycorporate or not
We’d all like to liveinabeautiful home in aperfectlocation.Your firsthomeis not your forever home, however
Consider what’s important to you in a suburb. Depending on yourstage of life and priorities,different amenities might be important to you.
Buying your first home is abig step in life. It will take time to find the right propertyinthe right suburbata price you can afford.
● Which schools areinzone?
Finding thebest suburb foryou
The average property value varies according to suburb. Some suburbs wherethereare alot of large expensive homes with water views have ahigher average property value, while others on city fringes or dominated by apartments have alower average property value. But most suburbs have arange of properties within them,which means that even the most popular and expensive suburbs have options for first-home buyers.
5 FIRST HOME BUYERS GUIDE
● What is the proximity to public transport or main highways?
Buying off the plan means you sign up to buy ahomewhen it’saplan only and isn’t built.Yousign asale and purchase agreement upfront and pay adeposit to securethe property,but don’t settleuntil the home is built.
Youmay have grown up dreaming of owning astandalone home on aquarter acresection, but to get on the property ladder you may need to begin with an apartment, or terrace home, that is joined to neighbouring properties.
Cross lease: This is aform of home ownership whereeach home on a cross-lease section owns ashare of the underlying land. Historically these came about whensomeone subdivided their section into two or three. Instead of eachowner buying theland beneath their home, they took ashareinthe entirelandand alease for thebuilding Some New Zealanders arehesitant to buy cross leased properties because the ownershipstructurerestricts them from alteringorextendingtheirhome,
● What about local shops, cafes and night life?
The different typesof property
and may even limit things likepet ownershiporpaint colours
With many apartments you needtobudget for annual body corporate levies, which cover the building management, upkeep of shared areas and lifts, insurance and maintenance costsofthe building.
To get an indication of what a property is worth, searchfor it on OneRoof.co.nz. TheAVM(automated valuationmodel) will giveyou agood indication of what the property is worth, while recent sales information will tell you what propertiesare selling for in individual suburbs.
OneRoof.co.nz 19
Getting amortgage
Ifit’s astandalonehome you mightbeabletochangethedesign orarrangeforcosmeticorappliance upgradesatyourcost.
CanyouuseKiwiSaver to builda house?
Youcan useKiwiSaverFirstHome WithdrawalorFirstHomeGrant to paythe deposit,andorwithdraw at settlement.TheKiwiSavermoney mustbeheldintrustorescrowby the developeruntilthecertificate of titleand theCodeCompliance Certificate(CCC)
● Otherissuessuchasfailuretogeta
NewZealandhasalongstanding traditionofgetting ahouse builttoyour ownspecifications.Youeitherbuya houseand landpackage wherethehome isbuilttoyourliking,oryoubuy the landseparatelyand employanarchitect andbuilder, orchoose agroupbuild home.
Someofthoserisks are:
Theadvantageofbuildingisthatyou get ahomethat’suniquely yoursinthe locationofyourchoice.Butthereare risks:
Typically,youwillpay a10%deposit andthenprogresspaymentsasthebuild progresses.Banksoffer construction loansdesignedtopayforthebuildin stages.It’sa goodideatoseekadvice from amortgageadviserorbank’s mortgage managertoensureyou understand howtheseloansworkand getthemostappropriateoneforyour situation.
● The projectmaybedelayedandyour pre-approval runout
● Therecouldbebudgetblowouts
floororcarparkplans,thedeveloper usesthe‘specificationslist’to substituteitemsthatarenotalways like-for-like
● “Materialdifferencesclauses”are usedtomakechangestoproposed
Building ahouse as afirst-home buyer
● Thebuildermightdopoor workmanship,or
● KiwiBuild: Youcangointo aballotto buy aKiwiBuildhomeoff theplan. Theyaretypicallypricedlessthanan equivalent homebeingsoldonthe openmarket.
● The homeissmallerthanitappeared inthe “renders”onthemarketing material,oritis poorqualitywhen built.
10-year-guaranteeon thework Averyspecificriskforfirst-home buyersusingKiwiSaveristhatthe costtobuildincreases(thanksto“cost adjustments”clauses)anditexceedsthe pricecapsfortheFirstHomeGrant.This couldspelldisastersobecareful.
Therearepotential downsides to buying offtheplan
● Thebuildisdelayedandyourpreapprovalforfinance runsout
● Typically it’s cheaper to buy ahome off the planthanonce it’s complete. Thisisbecausedevelopersneedto secureapercentageofpre-salestoget theirfinancetobuild.They’reoften willingtosellslightlymorecheaply tothefirstbuyerswhosignsaleand purchasecontracts.
Buyingoff theplan ismoreriskythan buying aturnkey (completed)home.
● Thedevelopergoesbustanddoesn’t completethe build
● A“sunsetclause” is invokedbecause thebuildhastaken toolong,and thedevelopercancelsthesaleand purchaseagreement.Itmaybe considerablymoreexpensivebythen tobuyanotherhome
FIRSTHOMEBUYERSGUIDE
Whencalculatingthe costof buying ado-up house, makesure youfactorinthecostof renovating.
Whathappens at ahouse valuation?
Buying to renovate
How much does it cost to renovate?
hansimply
When aregisteredvaluervisitsthe propertytheydoalotmorethansimply compareittonearbyhomes.They willlookatthesizeandconditionofa property,itslayout,elevation,views,and surroundings.
hers very e ng. u ou 20 OneRoof.co.nz
be sold hardto se n? ouncil b) yo couldaffordmore.
Aregistered valuationwillhelp ensure youa)don’tpay toomuchfor ahomeand b)don’toffertoolittleandloseoutifyou
Manyfirst-homebuyersoftenbuyfixeruppersas awayofgettingontheproperty ladderat alowerprice.
ManyhomesinNewZealand aresold without apriceonthembyauction, tenderordeadlinetreaty.Itcanbeha knowwhattobidorofferinthatcase.
Banksoftenrequirearegistered valuationbeforetheywilllendona property. That’stoensurethatshouldyou defaultonyourmortgage, theycansell thepropertyand recouptheirmoney. If you arebuyingthehouseformorethan thevaluationit’sunlikelyyou’llbeloaned asmuch moneyas youexpect.
● ALandInformationMemorandum (LIM) is afile heldbylocalcouncils thatsummarisestheinformation heldonthatproperty. Itcontains arangeofinformationsuchas rates information,stormwaterand seweragepipeson theproperty, consents, andpotentialerosion, subsidence, slippageorflooding, andthepossiblepresenceof hazardousmaterials.
areissued.Oncethathappensthe saleis settledandthebuyercanmovein.
Youcanonlyborrow topayfor renovations ifyou’renot already stretchedtothelimit.Bankswill runyourapplication throughan affordabilitycalculator andifyou don’thavesufficientequityand/ or income to make repaymentsyou won’tbe abletoborrowmore.
Valuations
● Theproperty file contains all thedocuments that relatetoa LIM reportsuchas building and resourceconsents,and correspondence withthecouncil aboutthe property. Be aware thatbuildingworkdonewithout consentisn’tincluded in thefile.
Pros and cons
Yourhomeis averybiginvestment. It’s agoodideatoget reportsdoneto ensureit’singoodorderandthereare nosurprises.
Building reports andLIMs
Whatisahousevaluation?
calledthegovernmentvaluation(GV) orconfusinglybecauseofitsacronym, theratingvaluation(RV),areproduced forratingspurposes.Theydon’tgive anaccurateindicationofhowmucha propertymightsellfor.Youcanalsoget insurancevaluations,whichtellyouthe costto replacethehomeifit’sdestroyed. Realestateagentscan giveyouan estimateof what ahouse mightsellfor. Registered valuations(RV)are betterto relyon.Theyoftencost around$1000, but willgive amoreaccurate valuationofthe home. Valuersare trainedtoassess the marketworthof apropertybasedonan inspectionandcomparablesales.
Thecost of renovatingdepends onthe scopeofthework.Some renovationsareaestheticandothers arestructural.Thelattercanbevery expensiveindeed.
● Apre-purchase report(AKA building report) canidentify defectsin ahome.It’sbesttoget yourownand notrely on one providedbytheseller.Aprepurchaseinspectionby abuilder willhelpyou avoid expensive mistakesbybuying aproperty with expensiveproblemssuchas rot,leaky roofs,oldwiring, and wornoutpipes.Itcanalsogiveyou negotiatingpowerwhenbuying, or helpyouchoose betweentwo properties.It’spainfultopayfor apre-purchaseinspectionbecause itcouldcost$1000or more,justto missout,and need anotherone on the nextproperty.
Homescanbevaluedfordifferent purposesandit’s importantto understandwhattheymean.Thecou valuation(CV),whichcanalsobe
WhydoI needone?
izeandconditionofa tslayout,elevation,views,and
Thetwomainadvantagesoffixer-uppers arethattheycanbepricedconsiderably cheaperthansimilarhomes,andyou cangrowyourequityinthehomeby doing renovations.Onthedownside, youwillfindthatdoingup ahomeis nowherenearaseasyasitappearson TV renovationprogrammes.Renovators oftenunderestimatethecostandtheir ownskills.Bylawmanyjobs requirea licensedbuildingpractitioner(LBP)such as abuilderorelectrician.Theycanbe expensive.
McDowellRealEstateG FROMWAIKATO toEASTERNB.O Rotorua Whakatane TaMorrinsville upo Grou O.P Lookforoneofourfriendlyand experiencedofficesinyourarea... 26Horomātangi Street, Taupō 3330 073765647 admin@lakelandrealty.co.nz 1172 -1174Haupapa Street, Rotorua3010 072225227 results@mcdowell.co.nz 205The Strand,Whakatane3120 074630020 whakatane@professionals.co.nz 169ThamesStreet,Morrinsville3300 078897069 office@pmre.co.nz OneRoof.co.nz 21
Some properties aresold at tender or by deadline sales (also called “treaties”). With atender youmake writtenoffers by acertain date, which areconsidered by the seller.Adeadline sale is similarwithbuyers able tomake an offer any timeuptothe deadline.
6 FIRST HOME BUYERS GUIDE
You’ve fallenin lovewith aproperty and want to buy it.You’ll need to have your ducks linedup. That includes your mortgage, your KiwiSaver withdrawal, FirstHomeGrant if you qualify,aproperty inspectorto write a pre-purchasereport, anda lawyer (or conveyancer) to handlethe salefor you.
Iftheauctiondoesn’treachits reserve,itwillveryoftensellshortly after,bynegotiationwiththehighest bidder.Sometimesconditional buyerswhoneedtimetogetfinance willbeconsiderediftheauctionfails toresultinasale.
22 OneRoof.co.nz
Sold at tender or ‘bydeadline’
● Getting asatisfactory building report
Buyers should notmake offers on multiple properties at the same time, because they areduty-boundtobuy both properties if theoffers areaccepted.
Trynot to become too attached. If you’rebidding at auction, youmay not win. Propertysales fall through for other reasons as well, such as the vendor asking too much, or hidden issues that the property inspector or lawyer discovers.
can accept or negotiate on(called countersign or counter offer).
Once both buyer andseller have signed, thecontract is “unconditional”. This meansyou can’t back out evenif you change your mind. Buyers willneed to paythe deposit as soon as thecontract is signed.
Sold by negotiation
Beforemaking your starting offer,it’s averygood idea to get your lawyer to check the contract and property records of title (showing ownership and other information).Your lawyer will also check the title for any defects.
Othermethods of sale
● Asunset clause which voids the agreement afteracertain period of time
Whether you’rebidding at auction or making an offer,you’ll need your ducks in arow to win that dreamhome
Offers aremade to the vendor via the real estate agent who is selling the property.The offer is made on asale and purchase agreement document, noting any conditions, such as subject to finance, building reports, LIM (land information memorandum), or due diligence (investigation). The seller can either accept your offer,ormake a counter offer Buyer and seller continue to negotiate in this wayuntil an agreement is reached. If you areinamulti-offer situation wherethereare other potential buyers you might need to put your best offer on thetable early
How to make an offer on ahouse
If the house isfor sale by negotiation, you offer an amount you areprepared to pay.Usually you don’t makeyour best offer immediately
Typesofoffers youcan make Unconditional and conditional offers
Ifyouwinatauction,youwillneed topaythedeposit,usually10%,on thesameday.Youwillalsohaveto signthesaleandpurchaseagreement.
Getting started
Biddingatauctionisoneofthemost commonwaystobuypropertyinNew Zealand.Atauctionyoubidagainst otherstobuythehome.Theauction isrunbyanauctioneerwhoopensthe biddingatafigurethatisusuallyless thanthereserve,thepricetheselleris willingtoaccept.Eachbidneedstobe higherthanthepreviousbid.
● Alonger than normalsettlement period
● Early access to do renovations prior to settlement
Sellers tend to prefer unconditional offers or at leastas few conditions as possible. As aresult, your offer is more likelytobe accepted if it has fewer conditions.
For tenders and deadline sales you usuallyonly getone shot at making an offer,soneed to make it your best first time. The seller chooses between the offers presented.
Buying at auction
Whathappens after youmakeanoffer?
An offer by negotiation or tender is not legally bindinguntil it is accepted and both the buyer and sellersign the saleand purchase agreement (contract).
THE BUYING PROCESS
Legalfeesand paperwork
Sale and purchase agreements for new-builds areoften bespoke and could
Most existing homes in New Zealand aresold using thestandardADLS/ REINZ Sale Purchase of Real Estate Agreement. Eventhen, therecan be different clausesused.
Whenbuyingatauctionyouare usuallybuyingunconditionally,so youcannotbackout.Sometimes thesellerwillagreetoavariation ofagreementinadvance,suchas alowerdepositamount,orthe settlementdate.
Buying ahomeis abigcommitment and thereisquiteabit thatcould go wrong. Alawyer works for you and checks the sale and purchase agreement, the title, the LIM, and does the transfer of the property on settlement day.It’sbest to choosea specialistproperty lawyer to do this work.
When ahouse is sold by negotiation, buyers make offers whichsellers
have worrying clausesthat alawyer will spot
Anofferby negotiationor tenderisnotlegally bindinguntilitis acceptedandboth thebuyerandseller signthesaleand purchaseagreement (contract).
Your offer canbeunconditional, or conditional. Some of the common conditions include:
● Securing finance
Settlementdayiswhentheproperty transferstoyou and it’sofficiallyyours. Itcanbe along nerve-wrackingday in which alot happensbehindthescenes. Thebuyer’slawyerneedsto arrangeforpaymenttobetransferred totheseller’slawyerandin return thetitle transferiscompletedand
Thecostofconveyancing istypically$1000to$1500. Somelawyersoffer acheaper service,butmaychargeextra for‘disbursements’suchasLand InformationNewZealand(LINZ) feesandotherexpenses.
Afewdayspriortothehome becomingyours,youwilltodoa pre-settlementinspectiontoensurethe houseis intheconditionitwaswhenyou agreedtobuy.
Thecostof conveyancing istypically $1000to $1500. OneRoof.co.nz 23
Thevastmajorityof purchasesgothroughwithout problem,butsometimes thingscango wrong,suchas thesellerortenantsfailing tomoveout, rubbishleft behind,newdamagetothe property, ormissingkeys.In circumstancessuchasthesethelawyers willnegotiateto reach asatisfactory resolutionbeforethesettlementgoes through.
What happens at settlement?
thekeys released.Thatsounds straightforward,buttakestime becauseofthenumberofsteps needed.Ifonesideisnot ready tosettle,theycanbecharged penalties.
Oncesettlementiscompleteyoupick upthekeysandcanmovein.Sometimes itpaystobook removalvansfortheday aftersettlement,justincasethings go wrongonsettlementdayandyouwaste yourmoney.
AndrewBroxholme
24 OneRoof.co.nz
Meetyournew
Kawerausalesperson
Robinson
021 0876 6836 andrew.broxholme@professionals.co.nz
MeetyournewOpotikisalesperson
NOWLISTINGANDSELLINGIN Andy Stretton 027 2888 254 Pat Jarvey 027 260 0654 Stuart Lougher Manager 027 498 8864 Chris Robson AREINZ Auctioneer 027 577 0029 Scott Jarrett 027 493 8019 Arlene Davidson 027 264 1913 Debra Gibbons 027 264 3690 Michelle King 021 027 90603 Steve Lovegrove Principal 021 727 338 KAWERAU&OPOTIKI Talktotheteamtoday abouthowwecanget youmovedandgetyou SOLDthisSpring! 205The Strand,Whakatanewhakatane@professionals.co.nz 074630020 Whakatane McDowellRealEstateLicensedREAA2008
Steve
027 445 9373 steve robinson@mcdowell
co nz
House
COMING SOON!
Charit CharityHouse
A‘NO’ATONE BANK ISN’T A‘NO’ATALL BANKS
Itdoesn’tmatterwhereyouareonyourhome-buying journey;checkingyourbudgetisagoodidea.Ifyou’re startingout,controllingyourspendingwillmeanyour depositgrowsfaster.Ifyou’realmostreadytoapply,a goodbudgetwillmeanyoucanborrowmore.Removing a$10,000creditcardlimitcanincreaseyourmortgage
affordability spendby$50pe abilityby$30,000.Th quicklyadduptoa Onceyouhaveyour lookingatyour andhirepurchase thatallowsy moneyyouw creditcardlimit,no howmuchyo unusedcardsan meagreamountofloyaltypointsyougeteachmonth worththeeff
Whileresearchinggovernmentbenefits,gettoknow commontermsinthemortgageandpropertyindustry.The mostcommontermsareLoantoValueRatios,servicing rates(alsoknownasstress-testrates)andthedifference betweenfixedversusfloating.
Project Project 2022 2022 Inpartnershipwith 2021's RECORD profitreached23 worthyorganisations withinthecommunity. LicensedREAA2008 MONEYMATTERS
•RupertGoughisthefounderandCEOofMortgageLab andauthorofTheSuccessfulFirstHomeBuyer.
Butifyou’reconsideringbuyingahome,myadviceisto startbyreviewingyourincome.Yourhouseholdincome (andexpenses)willdictatehowmuchyoucanborrowfrom thebank,whichwilldictatehowmuchdeposityouneed. Therefore,beforeanythingelse,thefirstthingtodoistoget yourbudgetinorder.Knowexactlyhowmuchhascomein andgoneoutofyouraccountoverthepastthreemonths. Thebankwilltakeyourspendingintoaccountinyour application.Makesureyouknowwhatyou’respending yourmoneyon.
M
aybeyou’vejustdecidedtostartsavingfor ahouseorhavebeensavingforawhile. Whicheveritis,youwillwanttoknowhowto takethefirststeptowardshomeownership. Herearethefundamentalsofwhatyouneedtoknow. Gettingamortgagecomesdowntotwothings.Your incomeandyourdeposit.Inotherwords,doyouhave enoughincometopayforyourfuturemortgage?Anddo youhaveenoughsavingstomeetthebankcriteria? Itseemsintuitivetostartwithyourdepositbecausethere issuchaclearlineinthesand.Youcan’tbuyahouseifyou don’thaveacertainpercentageofthepurchasepriceasa deposit.Formostpeople,theminimumdepositis10%.A 20%depositmakesgettingamortgageeasier-youarea saferbetforthebanks-butdon’twriteoffhomeownership ifyouonlyhave10%.Evena5%depositispossibleifyou meettheKāingaOraFirstHomeLoancriteria.
Nowthatyo control,it’sti helpfromKā not;checkth parents,forexample,canhaveearnedupto$150,000in thelast12monthstoqualifyfortheFirstHomeLoan.This wouldmeantheyonlyrequirea5%deposittopurchasea house.IsuspectthousandsofpeopleacrossNewZealand qualifyforoneoftheKāingaOraschemesthatcouldget themintoahouseanddon’trealiseit.Thesepotentialhome buyerswillbescramblingtogethera10%or20%deposit whentheycouldbeintheirhomenow.
Finally,it’stimetofindouthowmuchmoneyyoucan borrow.Youcanchattoyourbankortalktoanadviser
sometimesitcanbeassimpleastheydon’thaveenough moneytolendoutthisweek.Ifyouknowwhyyouwere declined,youknowwhatitwilltaketofixit. Nothingisstoppingyoufromapplyingwithmultiple lenders,butitmaymeantheybrushyourapplicationaway morequickly.Ifabankcanseeasmallissuewithyour applicationandtheyaretheonlylenderyouaretalkingto, theymayworkwithyoutoapprovetheapplication.Ifthey knowtheyareoneofmanylendersyouareworkingwith, chancesaretheywilldeclinetheapplicationandmoveon tothenextone.Gotothebestlenderfirstandapproach othersifrequiredtoafterthat
Somearemoreconservativethanotherswhenitcomestomortgag andifyourapplicationisdeclined,alwaysaskthe reason,writes OneRoof.co.nz 25
dgrowth in thethree months est Coast (up 2.5%,to$403,000). dfromsix months agowhen and onlyAucklandwas on the .The region taking the biggest average propertyvalue verthe quarterto$992,000 -the low $1m since May 2021 rritorial local authorities,14 the threemonths to theend of wereinWest Coastand Otago, bury, and Waikatodistrict, in fthe rankings forthe second growth of 13.2% and7.3% was at the bottom of the heap, valuedown11.7% ($151,000) otherTAs also suffered doubleand Otorohanga,bothin
Nelson's average propertyvalu biggest quarterly drop after Greater followedbyHawke'sBay (down (down4.4%).
Of the country's seven majormetros, only one, Queenstown-Lakes, avoided thewinter chill. Itsaverage propertyvaluegrew1.8% ($33,000) in the last three months to $1.878m.
ONEROOF VALOCITY HOUSE VALUE INDEX
Nationwide, moversmadeup 16.5% of new mortgage registrations in thethree months to theend of July, while investorsmade up 25.6%, and thosere-entering the market made up 2.9%.
James Wilson,head of valuations at Valocity, OneRoof's datapartner,said: "Almost half of thevalue gains made in the last 12 months have been wipedout by the slump, with the nationwide average propertyvalue down 5% -$55,000 -since peaking in February
At $1.043 million, New Zealand’s average property value is 4.7% ($47,000) aheadof whereitwas this time last year, but the downturn is eating away at the gains made late
NZ’S MOSTEXPENSIVE
NZ’S CHEAPEST
"Some 7600, or 38.5%,ofall new mortgagesissued between Mayand July this year weretofirst-home buyers, compared with 7800, or 36.9%, in theprevious three-month period.
Themost expensivesuburboutside ofAuckland is Queenstown-Lakes' KelvinHeights(down2.2% over the quarterto$2.6m)
"Worse still, thelastsix months have wipedout more than40% of the$350,000valuegains Wellingtonians made during thepost-Covidboom. Those whobought around market peak with aminimumdeposit maynow find themselves in negative equity,and runthe risk of incurring real losses if forced to sellinthe current market environment."
($151,000) over the quarter to $1.137m, and is down 6.3% ($76,000)year on year. The valuedecline in Tauranga over thequarter was 5.6%, andjust over 4% in Dunedin House values in Hamiltonand Christchurchdropped2% and1.1%respectively
Almost half of the value gains made in the last 12 monthshavebeenwipedout by the slump.
Thecapital’s average propertyvalue dropped11%
Auckland’s average property value was down 4.3% over the threemonths to theend ofAugust -its sixth successive quarterly decline since theend of March -and is up just 2.3% year on year
HE HOUSING market decline has accelerated and across the country New Zeala valuedropped months to $1. activity collaps Figuresfro ValocityHouse drops in 15 of with significant in Wellington andAuckland.
"Wellington’s newest homeowners arelooking particularly vulnerable. Forthe second month in arow, housevaluesinthe region weredownyear on year,with the 5.6% drop recorded in the 12 months to the endof August the region's biggestyear-on-yeardecline since.
Suffering the country's biggest Wellington. Theregion'saverag 9.1% over thequarter,ending its $1m club
Only West Coast, NewZealand's market, managed to escape thed average property value up 2.5%( quarterto$403,000.
With an average property value of $3.9m, Herne Bay is New Zealand’s most expensive residential suburb, but the downturn has madehouses thereless expensive. The wealthy enclave has in the last three monthslost its status as NZ’s $4msuburb, withits average property value dropping 5.7% ($236,000) overthe quarter,and 6.91% ($290,000)in the last sixmonths.Year on yeargrowth for the suburb was4.4%,so those who bought lastSeptember have stillcome out$164,000 ahead.
Runanga, in Grey,retains its crown as New Zealand's cheapest placetobuy,withthe town's average property value sitting at $233,000. Value growth over the quarter was 1.7%, adding another $4000 to the price of atypical home there. While the property boom hasn’tadded hundreds of thousandsof dollars to the value of Runanga homes, residents who bought in the town post-lockdown, when the average property value was $165,000,aresitting on atidy $68,000 gain. Just four other towns andsuburbs have an average property value of less than$300,000: Mataura, in Gore($242,000);Cobden, in Grey ($252,000); Blaketown, alsoinGrey($270,000) andKaitangata, in Clutha ($286,000).
MOST EXPENSIVE: Herne Bay,inAuckland. Photo /Fiona Goodall
"It'sabig drop from the10,500 mortgagesregisteredto first-home buyers 12 months ago,whenthe buyergroup represented 39.9%ofall newmortgages."
HOUSING MARKET'S WINTER FREEZE
Thefigurescited belowonly cover suburbs with 20plus settled sales in thelast 12 months.
GreaterWellington was also the down year on year,but it won't regions follow suit.
Thenumberofsettled sales in the last quarter was13% down on the quarterprior and 31%down on thesame quarterlast year."Moretelling is thefact thatsales were 24% down on the same quarter five years ago," Wilson said. "Auckland, which accounts for the bulk of sales activity in the country, recorded almost 8% fewersales last quarterthan it didduring the same three-month [period] in 2017, whenthe city's housing market was in the midst of aslump."
26 OneRoof.co.nz
THE BIGGEST WINNERS, BIGGEST LOSERS
Forty-sevensuburbs with 20 or more settled sales in the last 12 months have an averagepropertyvalue of $2m and above -down from 53 threemonths ago.Ofthe current crop of $2m-plus suburbs, just foursaw value growth over thequarter, and only eight areinabetter position now thanthey weresix monthsago.Values in six $2m-plus suburbs -all of which areinAuckland -are down year on year
The total number of newmortgages registrationsincluding first-home buyers, investors andmovers -had droppedfrom26,000 in the threemonthstothe endof June to 21,000 in thethree months to the end of July
Wilson said hesitancyamong buyers, drivenbyrising interest rates, an inflation rate of morethan 7% and fears about the wider economy,was resultinginfewer sales, which in turn was putting downwards pressureon propertyvalues.
Shum saidthe decline was in line with declining sales andrising interest rates. "Beforeweentered the Delta lockdown the market was stillpumping.Itwasn't until thewhole Delta lockdown was hanging aroundthat peoplestarted having doubts, especially inAuckland."
olumestumbled from 98,450 in the Julyto95,455 in the12months he 2605suburbscovered in 20 or moresettled salesover onth period, while 597 had one or none.
Wayne Shum, head of research at Valocity,said that the volume of mortgage registrations wasfalling fast.
last year and early this year, with $40,000 lost inthe last ontinued decline at current pace could magic $1mmark beforethe end of
Wilson said: "Fifty eight out of 72 territoriallocal authorities were in negative growth territory over the quarterand propertyvalues in five weredown year on year.Properties in Lowerand Upper Hutt, Porirua, Wellington and Palmerston North areworthless now than whatthey were ayearago."
OutsideofQueenstown-LakesandChristchurch, heatinthemajormetrosisbecomingharderto find.No suburbinDunedin, Taurangaor Wellington recorded valuegrowth overthequarter,whilethenumberof growthsuburbsinAucklandandHamiltonwasthree andone respectively.
Ofthe71suburbswithanaveragepropertyvalueof lessthan$500,000,49experiencedvaluedeclinesover thequarter.Thedownturnhasalsowidenedthepoolof “cheap”suburbsinthecountry’smostexpensivecity, withthenumberofAucklandsuburbswithanaverage propertyvalueoflessthan$1mupfrom17sixmonths agoto24now.
Theaveragepropertyvaluein 158suburbsislowernowthan whatitwas ayearago, withRoseneath,in Wellington,suffering thebiggestdollar dropyearonyear -adeclineof $216,000to $1.71m.
you Themapshowsthecurrentaverageproperty valueforeach region,andgivesthethree-month change.Thedifferentcoloursonthemapexpress thechangeinhousevaluesineachlocation. All NZ -3.7% $1.043m OneRoof.co.nz 27
KaikouraFlat,inKaikoura,Canterbury,recordedthe strongestgrowthoverthequarter,withthesuburb’s averagepropertyvalueup11.7%to$870,000.Growthwas alsostrongin MeremereandPukekawa,bothin Waikato district,buttheoverallnumberofgrowthsuburbs droppedfrom223inthethreemonthstotheendofJuly to 157inthethree monthstotheendofJuly.
FALLINGFAST
Northland,inWellington,isthehousingmarket’s weakestlink.Thesuburb’saveragepropertyvaluefell 15%($220,000)to$1.24m in thethreemonthsto theendofAugust,andisdown5.6% year on year.Another64suburbs, mostlyinGreater Wellington,sawdouble-digit declinesoverthe quarter,up from52inthethreemonthstothe endofJuly.Thesuburb thatlostthemostdollars was TotaraPark,inAuckland'sManukaudistrict, withitsaverageproperty valuedropping$299,000 overthequarterto$2.47m.Allup768suburbs lostacombined$44moverthethree-month period,withvaluesdropsof$100,000-plus recorded in131suburbs.
2%+ 1%+ 0%+ -1% -2% -3% -4% -5% -6% -9%
Whatthemaptells
LakeHayes,in Queenstown-Lakes,enjoyedthe biggestdollar gainoverthequarter,withitsaverage propertyvaluerising $147,000to$2.48m.
INDEMAND
Northland $893,000 -2.9% Auckland $1.452m -4.3% Waikato $981,000 -0.6% BayofPlenty $1.040m -4.4% Gisborne $706,000 -3.2% Hawke’sBay $869,000 -5.2% Taranaki $723,000 -1.0% ManawatuWhanganui $659,000 -4.1% TasmanWellington $994,000 -2.0% Marlborough $795,000 -1.4% Nelson $869,000 -5.9% WestCoast $403,000 +2.5% Canterbury $786,000 -1.1% Otago $952,000 -0.4% Southland $520,000 -2.3% $992,000 -9.1%
KAITAIA $468,000$455,000$376,0002.9%24.5%136
AVONDALE
Of theAucklandsuburbsthatrecorded20ormoresettledsales in thelast12 months,three -GreatBarrierIsland(AoteaIsland),CoatesvilleandPollok -sawvalue growthoverthequarterwhile TotaraParksufferedthebiggestquarterlydrop,10.8% to$2.47m.
CABLE BAY $860,000$866,000$716,000 0.7%20.1%60
3.8%16.0%140 MANGAWHAIHEADS $1,492,000$1,502,000$1,305,000 0.7%14.3%108 MAUNGATUROTO $786,000$816,000$684,000 3.7%14.9%40 TE KOPURU $512,000$557,000$473,000 8.1%8.2%20 WHANGAREI $934,000$977,000$846,000 -4.4%10.4%2116 AVENUES $603,000$653,000$591,000 7.7%2.0%37 GLENBERVIE $1,354,000$1,411,000$1,170,000 4.0%15.7%23 HIKURANGI $667,000$694,000$600,000 3.9%11.2%40 HORAHORA $734,000$775,000$699,000 5.3%5.0%27 KAMO $842,000$864,000$752,000 2.5%12.0%274 KAURI $1,289,000$1,339,000$1,054,000 3.7%22.3%23 KENSINGTON $716,000$749,000$622,000 4.4%15.1%107 LANGS BEACH $2,394,000$2,422,000$2,068,000 1.2%15.8%29 MAUNGATAPERE $1,189,000$1,253,000$1,099,000 5.1%8.2%35 MAUNU $1,116,000$1,141,000$967,000 2.2%15.4%87 MORNINGSIDE $636,000$672,000$581,000 5.4%9.5%47 NGUNGURU $1,165,000$1,215,000$1,031,000 4.1%13.0%35 ONETREEPOINT $1,224,000$1,228,000$1,079,000 0.3%13.4%161 LOCATION CURRENT AVERAGE PROPERTY VALUE THREE MONTHS AGO 12 MONTHS AGO QoQ CHANGE YoY CHANGE SETTLED SALES LAST12 MONTHS
KAIKOHE $385,000$390,000$336,000 1.3%14.6%66
MORNINGSIDE $1,428,000$1,539,000$1,444,000 7.2% 1.1%68
HARURU $865,000$874,000$739,000 1.0%17.1%45
PUKENUI $791,000$761,000$633,0003.9%25.0%20
TIKIPUNGA $683,000$704,000$626,000 3.0%9.1%196
WHAUVALLEY $765,000$808,000$713,000 5.3%7.3%51
EPSOM $2,387,000$2,531,000$2,335,000 5.7%2.2%247
Draggingthe regiondownisWhangarei,wheretheaveragepropertyvaluedropped 4.4%($43,000)overthequarterto$934,000.Ofthe28suburbsinthe TAthathad20or moresettledsalesoverthepast12months,onlyone, Tutukaka, registeredvaluegrowth inthethreemonthstotheendofAugust -a healthy3.2%lift to $1.49m -but 11 suburbs fellharderthanthe TAaverage.
FARNORTH $797,000$803,000$675,000 0.7%18.1%1435
ONERAHI $701,000$720,000$653,000 2.6%7.4%140
MOUNTEDEN $2,005,000$2,086,000$1,896,000 3.9%5.7%354
RIVERSIDE $812,000$869,000$758,000 6.6%7.1%23
TUTUKAKA $1,497,000$1,451,000$1,223,0003.2%22.4%50
Get More| Get Moved| Get Sold www.professionals.co.nzLicensedREAA2008 ONEROOF VALOCITYHOUSE VALUEINDEX
BLOCKHOUSE
HILLSBOROUGH $1,454,000$1,541,000$1,441,000 5.6%0.9%89
LYNFIELD $1,481,000$1,568,000$1,423,000 5.5%4.1%50
MOUNTWELLINGTON $1,113,000$1,150,000$1,088,000 3.2%2.3%375
KERIKERI $1,129,000$1,156,000$985,000 2.3%14.6%331
GREYLYNN $2,021,000$2,136,000$1,986,000 5.4%1.8%222
Theslumpcanalsobeseeninthedrop-off insalesactivity.Settledsalesinthe 12monthstotheendofAugustnumbered29,475 -downfromthe34,694inthe12 monthstotheendofMarch.
Allsevenof theregion'sformerlocalgovernmentareas recordednegativegrowth overthequarter,withManukau andtheNorthShoretakingthebiggesthits;their averagepropertyvaluesfell5.5%and5.4% respectivelyoverthe quarter,fuelled byquietersalesactivityintheirhighervaluesuburbs.Thevaluefallsinthefour remainingAucklanddistrictswerebetween 2.6%and3.9%.
RUSSELL $1,496,000$1,544,000$1,299,000 3.1%15.2%47
NORTHLAND $893,000$920,000$790,000 2.9%13.0%4208
12
GREATER AUCKLAND$1,452,000$1,518,000$1,419,000 4.3%2.3%29475 AUCKLANDCITY$1,647,000$1,711,000$1,632,000 -3.7%0.9%7188 AUCKLANDCENTRAL
GREATER AUCKLAND’S averagepropertyvaluefell4.3%($66,000)to$1.45minthe lastthreemonths.Housevaluesinthecityare8% belowwheretheywereat thestart oftheyearandonly2.3%abovewheretheywereinSeptember2021.
GREATER AUCKLAND
FREEMANS BAY $1,837,000$1,892,000$1,810,000 2.9%1.5%89 GLENINNES $1,300,000$1,430,000$1,322,000 9.1% 1.7%147
HERNE BAY $3,904,000$4,140,000$3,740,000 5.7%4.4%71
KOHIMARAMA $2,417,000$2,578,000$2,382,000 6.2%1.5%70
MISSION BAY $2,437,000$2,626,000$2,352,000 7.2%3.6%86
NORTHLAND
TAMATERAU $1,261,000$1,310,000$1,111,000 3.7%13.5%23
OPONONI $567,000$586,000$484,000 3.2%17.1%30
KAWAKAWA $503,000$511,000$445,000 1.6%13.0%33
LOCATION CURRENT AVERAGE PROPERTY VALUE THREE MONTHS AGO MONTHS AGO
WHANGAREIHEADS $1,221,000$1,261,000$1,071,000 3.2%14.0%38
PAIHIA $814,000$827,000$711,000 1.6%14.5%65
COOPERSBEACH $920,000$919,000$737,0000.1%24.8%28
WAIPU $1,274,000$1,334,000$1,114,000 4.5%14.4%103
QoQ CHANGE YoY CHANGE SETTLED SALES LAST12 MONTHS
MOUNT ROSKILL $1,312,000$1,331,000$1,276,000 1.4%2.8%311
$893,000 13%%
PARUA BAY $1,235,000$1,290,000$1,094,000 4.3%12.9%42
PARAHAKI $850,000$881,000$757,000 3.5%12.3%27
AHIPARA $666,000$674,000$538,000 1.2%23.8%28
KARIKARIPENINSULA $812,000$807,000$633,0000.6%28.3%88
RAUMANGA $571,000$602,000$512,000 5.1%11.5%64
RUATANGATAWEST $1,116,000$1,172,000$984,000 4.8%13.4%21
WOODHILL $648,000$704,000$617,000 8.0%5.0%38 $622,000$635,000$651,000 2.0% 4.5%884 $1,107,000$1,141,000$1,156,000 3.0% 4.2%296 BAY $1,290,000$1,347,000$1,290,000 4.2%0.0%190 $863,000$900,000$878,000 4.1% 1.7%108 ELLERSLIE $1,420,000$1,461,000$1,474,000 2.8% 3.7%153
Kaipara'saveragepropertyvaluewasdown2.4%overthequarter,with Te Kopuru leadingthe TA'sslumpwith avaluefallof8.1%.MangawhaiHeadsnarrowlyescaped thewintercoldspell,withitsaveragepropertyvaluedownonly0.7%overthequarter.
NORTHLAND’S average property valuefell 2.9%to$893,000inthelastthreemonths. That's still$103,000 upon ayearago(and$271,000abovetheAugust2020figure),but thepaceofdeclinehasincreased sincetheregionfirst slippedintonegative growth territoryinApril.
WAIPAPA $1,130,000$1,117,000$934,0001.2%21.0%65
RUAKAKA $1,045,000$1,077,000$899,000 3.0%16.2%95
GRAFTON $711,000$761,000$768,000 6.6% 7.4%70
MOUNTALBERT $1,529,000$1,593,000$1,508,000 4.0%1.4%242
KAEO $834,000$843,000$668,000 1.1%24.9%42
AVERAGEPROPERTY VALUEYEARON YEARCHANGE
Northland'sstarperformersoverthe quarterwere Waipapa(up1.2%to$1.13m), Kaitaia(up2.9%to$468,000)andPukenui(up3.9%to$791,000).
GREENLANE $2,032,000$2,163,000$2,083,000 6.1% 2.4%88
MEADOWBANK $1,849,000$1,936,000$1,843,000 4.5%0.3%73
Propertyvaluesin41suburbsarelowernowthantheywere inSeptemberlastyear, withManurewaEastdownthemostyearonyear(-9.7%to$798,000).
GLENDOWIE $2,544,000$2,707,000$2,487,000 6.0%2.3%115
GREAT BARRIERIS. (AOTEAISLAND) $842,000$833,000$715,0001.1%17.8%49
OKAIHAU $785,000$785,000$655,0000.0%19.8%31
TAIPA $767,000$768,000$627,000 0.1%22.3%24
EDENTERRACE
The region'smostexpensivesuburbisLangsBeach(averagepropertyvalueof $2.39m)anditscheapestisKaikohe(averagepropertyvalueof$385,000).
KAIPARA$983,000$1,007,000$863,000 2.4%13.9%657 BAYLYS BEACH $702,000$725,000$609,000 3.2%15.3%20 DARGAVILLE $563,000$587,000$515,000 4.1%9.3%112 KAIWAKA $1,036,000$1,070,000$881,000 3.2%17.6%69 MANGAWHAI $1,421,000$1,477,000$1,225,000
MANGONUI $833,000$839,000$692,000 0.7%20.4%48
KINGSLAND $1,556,000$1,658,000$1,562,000 6.2% 0.4%70
$1,452,000 2.3% AVERAGEPROPERTY VALUEYEARON YEARCHANGE 28 OneRoof.co.nz
REGENT $763,000$815,000$698,000 6.4%9.3%38
NEWWINDSOR $1,405,000$1,501,000$1,343,000 6.4%4.6%58
ARMY
PATUMAHOE $1,403,000$1,473,000$1,249,000
SUNNYNOOK $1,334,000$1,398,000$1,339,000 4.6% 0.4%77
NARROW NECK $2,141,000$2,297,000$2,102,000 6.8%1.9%32
WESLEY $1,267,000$1,369,000$1,284,000 7.5% 1.3%33
$1,023,000$1,109,000$1,033,000
ORAKEI $2,637,000$2,689,000$2,516,000 1.9%4.8%80
SAINTMARYS BAY $3,184,000$3,319,000$2,984,000 4.1%6.7%40
WAIHEKEISLAND $2,106,000$2,249,000$1,900,000 6.4%10.8%292
FAIRVIEWHEIGHTS $1,706,000$1,783,000$1,704,000 4.3%0.1%47
ROYALOAK
WEYMOUTH $891,000$945,000$870,000 5.7%2.4%211
GLENFIELD $1,164,000$1,206,000$1,130,000 3.5%3.0%290
POINTENGLAND $1,240,000$1,312,000$1,268,000 5.5% 2.2%52
CLARKSBEACH $1,349,000$1,393,000$1,205,000 3.2%12.0%51
HILLCREST $1,365,000$1,426,000$1,376,000 4.3% 0.8%162
THE GARDENS $1,411,000$1,512,000$1,351,000 6.7%4.4%48
DEVONPORT $2,287,000$2,461,000$2,325,000 7.1% 1.6%109
SHELLYPARK $1,693,000$1,852,000$1,658,000 8.6%2.1%32
WHITFORD $3,654,000$3,728,000$3,466,000 2.0%5.4%41 WIRI $754,000$817,000$773,000 7.7% 2.5%43
TOTARA PARK $2,477,000$2,776,000$2,197,000 10.8%12.7%34
$1,678,000$1,768,000$1,638,000 5.1%2.4%103
WATERVIEW $1,154,000$1,273,000$1,128,000 9.3%2.3%40
BROWNS BAY $1,368,000$1,416,000$1,304,000 3.4%4.9%243
HALFMOON BAY $1,773,000$1,831,000$1,664,000 3.2%6.6%105
SUNNYHILLS $1,848,000$1,949,000$1,775,000 5.2%4.1%55
SURFDALE $1,573,000$1,676,000$1,392,000 6.1%13.0%48
HUNUA $1,637,000$1,698,000$1,430,000 3.6%14.5%31 4.7%9.9%47 4.8%12.3%34 POLLOK $1,183,000$1,161,000$1,006,0001.9%17.6%22 PUKEKOHE $1,025,000$1,058,000$953,000 3.1%7.6%651 RAMARAMA $1,844,000$1,985,000$1,702,000 7.1%8.3%49 WAIUKU $1,013,000$1,030,000$904,000 1.7%12.1%274
PAKURANGA $1,323,000$1,391,000$1,304,000 4.9%1.5%152
OTEHA $1,230,000$1,278,000$1,230,000 3.8%0.0%89
BEACHLANDS $1,722,000$1,812,000$1,636,000 5.0%5.3%152 BOTANYDOWNS $1,389,000$1,474,000$1,363,000 5.8%1.9%110
SOMERVILLE $1,622,000$1,736,000$1,613,000 6.6%0.6%50
QoQ CHANGE CHANGE
GREENHITHE $1,877,000$2,012,000$1,826,000 6.7%2.8%122 HAURAKI $2,209,000$2,382,000$2,110,000 7.3%4.7%89
BELMONT $1,728,000$1,814,000$1,635,000 4.7%5.7%49
REMUERA $2,987,000$3,018,000$2,809,000 1.0%6.3%433
THREE
SAINTJOHNS
PINEHILL $1,788,000$1,892,000$1,798,000 5.5% 0.6%57
NORTHCOTE $1,380,000$1,434,000$1,348,000 3.8%2.4%139
CLOVER PARK $939,000$1,012,000$897,000 7.2%4.7%97
COCKLE BAY $1,738,000$1,879,000$1,689,000 7.5%2.9%87
SCHNAPPER ROCK $1,724,000$1,821,000$1,716,000 5.3%0.5%54
BAYVIEW $1,117,000$1,200,000$1,090,000 6.9%2.5%113
WAIOTAIKI BAY $1,681,000$1,853,000$1,665,000 9.3%1.0%30
9.7% 2.9%27 WINDSOR PARK $1,515,000$1,564,000$1,494,000 3.1%1.4%24 PAPAKURA $1,136,000$1,176,000$1,061,000 3.4%7.1%2154 CONIFERGROVE $1,131,000$1,227,000$1,092,000 7.8%3.6%87 DRURY $1,515,000$1,594,000$1,311,000 5.0%15.6%28 KARAKA $1,874,000$1,974,000$1,745,000 5.1%7.4%252 OPAHEKE $1,197,000$1,259,000$1,095,000 4.9%9.3%137 PAHUREHURE $1,109,000$1,199,000$1,068,000 7.5%3.8%88 PAPAKURA $944,000$963,000$865,000 2.0%9.1%961 REDHILL $924,000$989,000$826,000 6.6%11.9%66 ROSEHILL $1,027,000$1,099,000$930,000 6.6%10.4%89 TAKANINI $1,034,000$1,062,000$971,000 2.6%6.5%438 RODNEY$1,523,000$1,580,000$1,441,000 3.6%5.7%3285 ALGIES BAY
MANGERE $1,012,000$1,061,000$925,000 4.6%9.4%170 6.0%9.8%137 5.6%6.6%255 5.0% 4.8%89 4.6%0.2%748
BEACHHAVEN $1,176,000$1,250,000$1,207,000 5.9% 2.6%223
AGO
TOTARA HEIGHTS $1,126,000$1,219,000$1,121,000 7.6%0.4%33
DANNEMORA $1,740,000$1,876,000$1,785,000 7.2% 2.5%35
ONETREEHILL $1,504,000$1,578,000$1,486,000 4.7%1.2%69
NORTHCOTEPOINT $1,813,000$1,957,000$1,820,000 7.4% 0.4%46
PONSONBY $2,619,000$2,761,000$2,512,000 5.1%4.3%92
FLAT BUSH $1,484,000$1,524,000$1,427,000 2.6%4.0%819
PAREMOREMO $2,027,000$2,226,000$1,929,000 8.9%5.1%28
ONEHUNGA $1,266,000$1,270,000$1,289,000 0.3% 1.8%289
MANGEREEAST $986,000$1,044,000$925,000
MANUKAU $678,000$714,000$712,000
WESTMERE $2,743,000$2,955,000$2,655,000 7.2%3.3%67
MURRAYSBAY $1,858,000$1,996,000$1,893,000 6.9% 1.8%68
BUCKLANDSBEACH $1,860,000$1,966,000$1,766,000 5.4%5.3%169 CLENDONPARK $803,000$881,000$792,000 8.9%1.4%176
PARNELL $2,237,000$2,336,000$2,211,000 4.2%1.2%168
$1,287,000$1,367,000$1,311,000 5.9% 1.8%45
NORTHCROSS $1,402,000$1,491,000$1,418,000 6.0% 1.1%54
OTARA $872,000$938,000$829,000 7.0%5.2%128
POINTCHEVALIER $2,112,000$2,232,000$2,122,000 5.4% 0.5%144
PAKURANGAHEIGHTS $1,312,000$1,369,000$1,261,000 4.2%4.0%141
GULFHARBOUR
CLEVEDON $2,278,000$2,343,000$2,113,000 2.8%7.8%44
MAIRANGI BAY $1,878,000$1,999,000$1,910,000 6.1% 1.7%100
PANMURE $1,153,000$1,225,000$1,151,000 5.9%0.2%112
PROPERTY
BIRKENHEAD $1,445,000$1,508,000$1,419,000 4.2%1.8%189
$1,325,000$1,405,000$1,312,000
WATTLEDOWNS $1,170,000$1,235,000$1,088,000 5.3%7.5%139
EAST TAMAKIHEIGHTS $1,885,000$2,032,000$1,855,000 7.2%1.6%64
ALBANYHEIGHTS $1,488,000$1,554,000$1,422,000 4.2%4.6%111
FRANKLIN $1,201,000$1,233,000$1,091,000 2.6%10.1%1348 BOMBAY $1,842,000$1,951,000$1,591,000 5.6%15.8%24
PALMBEACH $2,155,000$2,230,000$1,893,000 3.4%13.8%20
NORTHSHORE $1,570,000$1,660,000$1,568,000 5.4%0.1%4237
SANDRINGHAM $1,589,000$1,650,000$1,541,000 3.7%3.1%195
LOCATION
EASTERN BEACH $2,045,000$2,172,000$2,043,000 5.8%0.1%23
HILLPARK 7.8% 1.0%78 HOWICK 5.7%1.0%242
FAVONA $951,000$1,000,000$895,000 4.9%6.3%70
OTAHUHU $877,000$944,000$840,000 7.1%4.4%186
PAERATA $1,486,000$1,559,000$1,352,000
FARMCOVE $1,886,000$2,057,000$1,841,000 8.3%2.4%28
THREEKINGS
TORBAY $1,358,000$1,412,000$1,350,000 3.8%0.6%281
ONEROA $2,382,000$2,546,000$2,168,000 6.4%9.9%80
EAST TAMAKI $1,225,000$1,266,000$1,184,000 3.2%3.5%101
TAKAPUNA $2,392,000$2,529,000$2,337,000 5.4%2.4%168
MANUREWA $907,000$951,000$905,000
SALES LAST12
BAYSWATER $1,874,000$2,032,000$1,844,000 7.8%1.6%39
PAPATOETOE $926,000$986,000$911,000 6.1%1.6%800
BIRKDALE $1,050,000$1,101,000$1,065,000 4.6% 1.4%184
DAIRYFLAT
MILFORD $1,935,000$2,087,000$1,878,000 7.3%3.0%146
TOTARA VALE $1,129,000$1,191,000$1,118,000 5.2%1.0%100 UNSWORTHHEIGHTS $1,263,000$1,385,000$1,263,000 8.8%0.0%72 WAIAKE $1,692,000$1,873,000$1,743,000 $1,480,000$1,545,000$1,423,000 4.2%4.0%22 BAY $1,243,000$1,338,000$1,234,000 7.1%0.7%28 $3,743,000$3,704,000$3,269,0001.1%14.5%51 $2,485,000$2,555,000$2,349,000 2.7%5.8%71 $1,216,000$1,244,000$1,079,000 2.3%12.7%192
STONEFIELDS
$1,734,000$1,785,000$1,686,000 2.9%2.8%84
OSTEND $1,576,000$1,677,000$1,425,000 6.0%10.6%53
ONETANGI $2,137,000$2,290,000$1,921,000 6.7%11.2%40
GLENBROOK $1,343,000$1,423,000$1,221,000 5.6%10.0%72
GOODWOODHEIGHTS $1,205,000$1,310,000$1,168,000 8.0%3.2%59
LONG BAY $1,767,000$1,874,000$1,757,000 5.7%0.6%110
ALBANY $1,222,000$1,293,000$1,165,000 5.5%4.9%184
MANGEREBRIDGE $1,407,000$1,497,000$1,282,000
OneRoof.co.nz 29
CAMPBELLS BAY $2,452,000$2,642,000$2,512,000 7.2% 2.4%50
YoY
Get More| Get Moved| Get Sold www.professionals.co.nzLicensedREAA2008
RANDWICK PARK $837,000$920,000$850,000 9.0% 1.5%98
NEWMARKET $989,000$1,005,000$1,020,000 1.6% 3.0%39
SETTLED MONTHS
COATESVILLE
$1,595,000$1,659,000$1,509,000 3.9%5.7%65
MANUKAU (EAST ANDSOUTH) $1,307,000$1,383,000$1,265,000 5.5%3.3%6314
HIGHLAND PARK $1,266,000$1,365,000$1,254,000 7.3%1.0%76
ROTHESAY BAY $1,693,000$1,868,000$1,798,000 9.4% 5.8%47
CHATSWOOD $1,611,000$1,720,000$1,602,000 6.3%0.6%46
AGO 12
GOLFLANDS $1,396,000$1,505,000$1,444,000 7.2% 3.3%43
OMIHA $1,207,000$1,347,000$1,179,000 10.4%2.4%20
CURRENT AVERAGE VALUE MONTHS MONTHS
CASTOR BAY $2,046,000$2,225,000$2,092,000 8.0% 2.2%72
MANUREWA EAST $798,000$886,000$884,000 9.9% 9.7%112 MARAETAI $1,657,000$1,810,000$1,608,000 8.5%3.0%41 MELLONS BAY $2,262,000$2,457,000$2,256,000 7.9%0.3%47 NORTHPARK $1,546,000$1,665,000$1,563,000 7.1% 1.1%56 LOCATION CURRENT AVERAGE PROPERTY VALUE THREE MONTHS AGO 12 MONTHS AGO QoQ CHANGE YoY CHANGE SETTLED SALES LAST12 MONTHS
FORRESTHILL $1,506,000$1,593,000$1,562,000 5.5% 3.6%135
ST HELIERS $2,523,000$2,656,000$2,462,000 5.0%2.5%244
WAIHEKEISLAND $3,600,000$3,869,000$3,245,000 7.0%10.9%31
POINTWELLS
GREEN BAY $1,353,000$1,437,000$1,292,000 5.8%4.7%60
RIVERLEA $926,000$988,000$891,000 6.3%3.9%22
RANUI $976,000$1,031,000$961,000 5.3%1.6%220
KAIPARAFLATS
SWANSON $1,306,000$1,375,000$1,220,000 5.0%7.0%110
ROTOTUNA $1,073,000$1,092,000$1,012,000 1.7%6.0%69
off inSeptember2020.Theslowrateofdeclinemeansthosepost-Covidgainsaresafe fornow,butweaknessesareevidentinthe region'sdiversehousingmarket -someof whichcouldbeseasonallydriven.
OKURABUSH $2,757,000$3,033,000$2,861,000 9.1% 3.6%21
CHEDWORTH $989,000$1,017,000$913,000 2.8%8.3%26
WAIMAUKU $1,761,000$1,851,000$1,655,000 4.9%6.4%73
SILVERDALE $1,507,000$1,589,000$1,428,000 5.2%5.5%202
HUNTINGTON $1,147,000$1,155,000$1,069,000 0.7%7.3%145
ENDERLEY $647,000$670,000$631,000 3.4%2.5%79
TINDALLSBEACH $1,704,000$1,887,000$1,671,000 9.7%2.0%20
WAITAKERE $1,640,000$1,682,000$1,430,000 2.5%14.7%33
TITIRANGI $1,376,000$1,426,000$1,347,000 3.5%2.2%254
WAITOKI $2,169,000$2,231,000$2,080,000 2.8%4.3%24
FLAGSTAFF $1,230,000$1,227,000$1,138,0000.2%8.1%254
Deanwell,inHamilton'ssouth-west,wasthecity'sbiggestwinterloser,withits averagepropertyvaluedown7.6%($55,000)to$672,000overthequarteranddown 1.3%yearonyear.
KUMEU $1,758,000$1,876,000$1,695,000 6.3%3.7%181
KELSTON $1,032,000$1,105,000$1,001,000 6.6%3.1%70
LEIGH $1,620,000$1,645,000$1,360,000 1.5%19.1%20
$1,516,000$1,572,000$1,369,000 3.6%10.7%23
KAUKAPAKAPA
MURIWAI
WAITAKERE $1,169,000$1,216,000$1,138,000 3.9%2.7%4648
SUNNYVALE
WESTGATE $1,078,000$1,137,000$1,074,000 5.2%0.4%75
$1,016,000$1,089,000$991,000 6.7%2.5%106
HATFIELDSBEACH
$1,589,000$1,732,000$1,580,000 8.3%0.6%28
STANMORE BAY $1,225,000$1,275,000$1,150,000 3.9%6.5%271
PIHA $1,511,000$1,574,000$1,318,000 4.0%14.6%20
WHENUAPAI $1,421,000$1,552,000$1,392,000 8.4%2.1%159
BEERESCOURT $1,071,000$1,071,000$971,0000.0%10.3%56
WARKWORTH $1,312,000$1,329,000$1,198,000 1.3%9.5%212 WELLSFORD $901,000$944,000$844,000 4.6%6.8%66
CLAUDELANDS $820,000$841,000$777,000 2.5%5.5%63
FAIRFIELD $834,000$859,000$784,000 2.9%6.4%158
RIVERHEAD $2,042,000$2,059,000$1,811,000 0.8%12.8%114
FRANKTON $698,000$723,000$691,000 3.5%1.0%164
SNELLSBEACH $1,192,000$1,245,000$1,119,000 4.3%6.5%97
STILLWATER $1,706,000$1,789,000$1,598,000 4.6%6.8%34
WESTHARBOUR $1,456,000$1,537,000$1,367,000 5.3%6.5%164
WAINUI $1,652,000$1,769,000$1,635,000 6.6%1.0%179
PUHOI $1,719,000$1,733,000$1,520,000 0.8%13.1%20
NEW LYNN $975,000$986,000$991,000 1.1% 1.6%374
OREWA $1,364,000$1,401,000$1,271,000 2.6%7.3%389
GLENDENE $1,084,000$1,168,000$1,044,000 7.2%3.8%92
TE ATATUPENINSULA $1,301,000$1,376,000$1,289,000 5.5%0.9%290
DINSDALE $770,000$801,000$737,000 3.9%4.5%201
GRANDVIEWHEIGHTS $956,000$1,014,000$915,000 5.7%4.5%25
HAMILTONEAST $772,000$785,000$756,000 1.7%2.1%282
PUKETE $873,000$921,000$847,000 5.2%3.1%98
BADER $624,000$651,000$625,000 4.1% 0.2%43
ROTOTUNANORTH $1,111,000$1,170,000$1,110,000 5.0%0.1%153
$1,194,000$1,307,000$1,184,000 8.6%0.8%28
HAMILTONCENTRAL $816,000$831,000$782,000 1.8%4.3%59
LAINGHOLM $1,152,000$1,222,000$1,120,000 5.7%2.9%46
HOBSONVILLE $1,264,000$1,303,000$1,190,000 3.0%6.2%583
SAINTANDREWS $902,000$941,000$861,000 4.1%4.8%140
TE ATATUSOUTH $1,099,000$1,135,000$1,100,000 3.2% 0.1%259
HENDERSON $1,086,000$1,133,000$1,051,000 4.1%3.3%661
WHITIORA $714,000$720,000$661,000 0.8%8.0%39
SILVERDALE $784,000$847,000$758,000 7.4%3.4%31
HAMILTONLAKE $975,000$1,030,000$984,000 5.3% 0.9%48
HAURAKI $792,000$880,000$640,000 10.0%23.8%413 KEREPEHI $594,000$630,000$446,000 5.7%33.2%20 NGATEA $741,000$851,000$658,000 12.9%12.6%39 PAEROA $624,000$664,000$527,000 6.0%18.4%97 WAIHI $781,000$841,000$637,000 7.1%22.6%165 MATAMATA PIAKO$881,000$878,000$739,0000.3%19.2%674 MATAMATA $889,000$875,000$771,0001.6%15.3%243 MORRINSVILLE $879,000$888,000$758,000 1.0%16.0%241 TEAROHA $774,000$770,000$604,0000.5%28.1%98 OTOROHANGA$670,000$756,000$664,000 11.4%0.9%148 KAWHIA $582,000$668,000$570,000 12.9%2.1%24 OTOROHANGA $642,000$718,000$620,000 10.6%3.5%93 SOUTH WAIKATO$546,000$564,000$489,000 3.2%11.7%498 PUTARURU $586,000$604,000$506,000 3.0%15.8%109 TIRAU $701,000$736,000$655,000 4.8%7.0%56 TOKOROA $463,000$478,000$379,000 3.1%22.2%301 TAUPO $962,000$1,001,000$859,000 3.9%12.0%1175 ACACIABAY $1,501,000$1,528,000$1,251,000 1.8%20.0%57 HILLTOP $967,000$1,008,000$858,000 4.1%12.7%67 KINLOCH $1,395,000$1,439,000$1,188,000 3.1%17.4%79 KURATAU $910,000$919,000$814,000 1.0%11.8%22 MANGAKINO $551,000$540,000$453,0002.0%21.6%45 MOTUOAPA $818,000$849,000$742,000 3.7%10.2%36 NUKUHAU $949,000$964,000$835,000 1.6%13.7%113 OMORI $845,000$853,000$743,000 0.9%13.7%22 LOCATION CURRENT AVERAGE PROPERTY VALUE THREE MONTHS AGO 12 MONTHS AGO QoQ CHANGE YoY CHANGE SETTLED SALES LAST12 MONTHS LOCATION CURRENT AVERAGE PROPERTY VALUE THREE MONTHS AGO 12 MONTHS AGO QoQ CHANGE YoY CHANGE SETTLED SALES LAST12 MONTHS WAIKATO'S AVERAGE propertyvalueslipped0.6%($6000)to$981,000inthelast threemonths,withstrongvaluegrowthin Waikato TAoffsettingthe10%-plusdrops inHaurakiandOtorohanga. Housevaluesinthe regionarestill9.7%($87,000)abovewheretheywereayear ago,and42%($293,000)abovewheretheywerejustbeforethehousingmarkettook WAIKATO $981,000 9.7% AVERAGEPROPERTY VALUEYEARON YEARCHANGE
MATAKANA $2,071,000$2,150,000$1,796,000 3.7%15.3%44
$2,344,000$2,435,000$2,058,000 3.7%13.9%34
MAEROA $777,000$793,000$741,000 2.0%4.9%56
QUEENWOOD $1,107,000$1,110,000$994,000 0.3%11.4%65
MAKARAU $1,321,000$1,387,000$1,235,000 4.8%7.0%27
WAIKATO$981,000$987,000$894,000 0.6%9.7%10689 HAMILTON$879,000$897,000$846,000 2.0%3.9%3398
REDBEACH $1,344,000$1,420,000$1,271,000 5.4%5.7%131
FAIRVIEWDOWNS $771,000$797,000$745,000 3.3%3.5%44
HELENSVILLE $1,305,000$1,340,000$1,233,000 2.6%5.8%121
$1,528,000$1,543,000$1,457,000 1.0%4.9%52
FORESTLAKE $799,000$818,000$745,000 2.3%7.2%67
HUAPAI $1,404,000$1,470,000$1,306,000 4.5%7.5%74
FITZROY $845,000$874,000$801,000 3.3%5.5%41
HENDERSON VALLEY $1,494,000$1,612,000$1,351,000 7.3%10.6%44
GLENEDEN $1,013,000$1,054,000$989,000 3.9%2.4%412
GLENVIEW $809,000$845,000$786,000 4.3%2.9%137
NAWTON $706,000$735,000$689,000 3.9%2.5%233
Hamilton'saveragepropertyvalueismorethan$60,000belowwhereitwasat thestartoftheyear,andonly$33,000aheadofSeptember2021levels.Thetrend linesuggestspropertyvaluesinthecitywillcomeunderfurtherpressure.Aquarter ofthecity's41suburbs recordedfewerthan20settledsalesinthelast12months andonlyone,Flagstaff,registeredvaluegrowthinthelastthreemonths -quitea turnaroundfromthe first quarteroftheyearwheneverysuburb recordedgrowth.
CHARTWELL $918,000$923,000$850,000 0.5%8.0%252
Waikato'sbestperformingsuburbinthreemonthstotheendofAugustwas Meremere,in Waikato.Itsaveragepropertyvaluejumped10.9%to$531,000 -again of$52,000.TheweakestwasNgatea,inHauraki,withitsaveragepropertyvalue down12.9%($110,000)overthequarter,althoughstillup12.6%yearonyear.
PARAKAI $875,000$900,000$841,000 2.8%4.0%27
MELVILLE $696,000$731,000$676,000 4.8%3.0%119
MANLY $1,356,000$1,444,000$1,338,000 6.1%1.3%121
OMAHA $2,753,000$2,812,000$2,506,000 2.1%9.9%29
DEANWELL $672,000$727,000$681,000 7.6% 1.3%24
MASSEY $1,108,000$1,128,000$1,083,000 1.8%2.3%538
HILLCREST $828,000$881,000$825,000 6.0%0.4%134
30 OneRoof.co.nz
ORATIA $1,761,000$1,771,000$1,627,000 0.6%8.2%20
Get More| Get Moved| Get Sold www.professionals.co.nzLicensedREAA2008 ONEROOF VALOCITYHOUSE VALUEINDEX
RICHMONDHEIGHTS $836,000$876,000$763,000 4.6%9.6%61
MATARANGI $1,197,000$1,229,000$1,085,000 2.6%10.3%76
MEREMERE $531,000$479,000$530,00010.9%0.2%29
BAYOF PLENTY
AVERAGEPROPERTY VALUEYEARON YEARCHANGE
$933,000$917,000$831,0001.7%12.3%40
THEDECLINE inBayofPlenty'saveragepropertyvalueacceleratedoverwinter.In thelastthreemonthsitdropped4.4%($48,000)to$1.04m,althoughitisstillup7.3% ($71,000)yearonyear,whichsuggestsnewhomeownerswillbeabletoholdonto valuegainsforlonger.
NGARUAWAHIA $822,000$796,000$774,0003.3%6.2%206
TAUPIRI $1,208,000$1,133,000$1,103,0006.6%9.5%41
TAIRUA $1,266,000$1,241,000$1,080,0002.0%17.2%72
MANGATAWHIRI $1,438,000$1,308,000$1,292,0009.9%11.3%24
COROMANDEL
OpotikiwastheonlyTAtoseevaluegrowthoverthequarter -amodest0.3%,but stillgrowthina slowingmarket.ThebiggestfalleroverthequarterwasTauranga, withitsaveragepropertyvaluedropping5.6%($69,000)to $1.172m.Noneofthecity's suburbs recordedvaluegrowthovertheperiod. Poikesufferedtheworstdrop,both inthecityand Waikatoas awhole.Itsaveragepropertyvaluefell9.1%($72,000) to $723,000.The leastaffected TaurangasuburbwasPyesPa,whichdroppedonly1.9% overthesameperiod.
FentonParkinRotoruaenjoyedthe region'sbiggestvaluelift.Itsaverageproperty valuejumped3.5%to$604,000.However,thedownturndidpull Lynmoreoutof Rotorua's$1mclub,withtheprizedsuburb'saveragepropertyvaluedropping1.9% to $991,000.
OneRoof.co.nz 31
TE KOWHAI $1,448,000$1,353,000$1,332,0007.0%8.7%33
TAUHARA $631,000$649,000$577,000 2.8%9.4%31
TWOMILEBAY $971,000$1,028,000$906,000 5.5%7.2%29
Get More| Get Moved| Get Sold www.professionals.co.nzLicensedREAA2008
$1,083,000$1,110,000$944,000 2.4%14.7%45
POKENO $1,177,000$1,083,000$1,046,0008.7%12.5%193
TAUPO $796,000$796,000$709,0000.0%12.3%211
THAMES COROMANDEL$1,290,000$1,280,000$1,151,0000.8%12.1%1137
TAMAHERE $2,235,000$2,049,000$1,965,0009.1%13.7%81
PUKEKAWA
WAIPA$1,103,000$1,138,000$989,000 3.1%11.5%1409 CAMBRIDGE $1,273,000$1,284,000$1,156,000 0.9%10.1%326 KARAPIRO $1,611,000$1,668,000$1,335,000 3.4%20.7%24 KIHIKIHI $831,000$856,000$726,000 2.9%14.5%126 LEAMINGTON $1,036,000$1,044,000$920,000 0.8%12.6%259 NGAHINAPOURI $1,527,000$1,543,000$1,260,000 1.0%21.2%55 OHAUPO $1,399,000$1,428,000$1,189,000 2.0%17.7%45 PIRONGIA $1,106,000$1,166,000$993,000 5.1%11.4%41 TE AWAMUTU $856,000$872,000$747,000 1.8%14.6%412 TEMIRO $1,453,000$1,510,000$1,228,000 3.8%18.3%24 WAITOMO $462,000$480,000$374,000 3.8%23.5%183 TE KUITI $464,000$491,000$385,000 5.5%20.5%119 BAYOFPLENTY$1,040,000$1,088,000$969,000 -4.4%7.3%6076 KAWERAU $441,000$443,000$400,000 0.5%10.3%140 OPOTIKI $617,000$615,000$607,0000.3%1.6%101 OPOTIKI $467,000$467,000$466,0000.0%0.2%59 WAIOTAHE $989,000$1,010,000$976,000 2.1%1.3%21 ROTORUA $792,000$799,000$744,000 0.9%6.5%1120 FAIRYSPRINGS $617,000$611,000$582,0001.0%6.0%37 FENTON PARK $604,000$584,000$572,0003.4%5.6%21 FORDLANDS $407,000$412,000$392,000 1.2%3.8%24 GLENHOLME $706,000$719,000$684,000 1.8%3.2%95 HAMURANA $1,362,000$1,338,000$1,188,0001.8%14.6%27 HILLCREST $653,000$674,000$628,000 3.1%4.0%27 KAWAHAPOINT $834,000$848,000$795,000 1.7%4.9%46 KOUTU $545,000$560,000$538,000 2.7%1.3%21 LYNMORE $991,000$1,010,000$926,000
THAMES $800,000$813,000$721,000 1.6%11.0%112
WAIRAKEI $1,168,000$1,183,000$967,000 1.3%20.8%27
WHANGAMATA $1,526,000$1,549,000$1,370,000 1.5%11.4%192
TE KAUWHATA $912,000$851,000$835,0007.2%9.2%123
PORTWAIKATO $667,000$633,000$681,0005.4% 2.1%22
HAHEI $1,761,000$1,808,000$1,540,000 2.6%14.4%20
MATANGI $1,861,000$1,789,000$1,674,0004.0%11.2%39
$1,040,000 7.3%
$1,470,000$1,498,000$1,349,000
RANGATIRAPARK
RAGLAN
WHATAWHATA $1,349,000$1,271,000$1,244,0006.1%8.4%33 1.9%7.0%67 $604,000$591,000$558,0002.2%8.2%27
WAIKATO$1,178,000$1,098,000$1,088,0007.3%8.3%1654
WAIPAHIHI $1,130,000$1,188,000$1,038,000 4.9%8.9%36
HUNTLY $595,000$570,000$554,0004.4%7.4%152
WHITIANGA $1,172,000$1,151,000$991,0001.8%18.3%259
$1,239,000$1,117,000$1,159,00010.9%6.9%24
$1,286,000$1,207,000$1,176,0006.5%9.4%157
MAMAKU
BUCKLAND $1,494,000$1,408,000$1,369,0006.1%9.1%34
PAUANUI $1,627,000$1,587,000$1,367,0002.5%19.0%106
TURANGI $509,000$529,000$468,000 3.8%8.8%104
COOKSBEACH 1.9%9.0%29
TUAKAU $912,000$888,000$833,0002.7%9.5%173
WHAREWAKA $1,414,000$1,480,000$1,255,000 4.5%12.7%106
MANGAKAKAHI $574,000$570,000$549,0000.7%4.6%55 NGONGOTAHA $756,000$755,000$694,0000.1%8.9%85 OWHATA $718,000$731,000$671,000 1.8%7.0%106 POMARE $776,000$808,000$745,000 4.0%4.2%25 PUKEHANGI $675,000$679,000$647,000 0.6%4.3%82 SPRINGFIELD $847,000$871,000$818,000 2.8%3.5%64 SUNNYBROOK $764,000$789,000$727,000 3.2%5.1%34 VICTORIA $575,000$574,000$562,0000.2%2.3%39 WESTERNHEIGHTS $557,000$565,000$544,000 1.4%2.4%57 TAURANGA$1,172,000$1,241,000$1,112,000 5.6%5.4%3161 BELLEVUE $853,000$928,000$808,000 8.1%5.6%74 BETHLEHEM $1,241,000$1,313,000$1,127,000 5.5%10.1%164 BROOKFIELD $860,000$925,000$814,000 7.0%5.7%130 GATE PA $731,000$768,000$690,000 4.8%5.9%133 GREERTON $788,000$842,000$746,000 6.4%5.6%70 HAIRINI $847,000$919,000$805,000 7.8%5.2%45 JUDEA $797,000$857,000$766,000 7.0%4.0%64 MATUA $1,291,000$1,383,000$1,207,000 6.7%7.0%91 MAUNGATAPU $983,000$1,050,000$935,000 6.4%5.1%60 MOUNTMAUNGANUI $1,604,000$1,678,000$1,480,000 4.4%8.4%462 OHAUITI $1,194,000$1,255,000$1,112,000 4.9%7.4%136 OTUMOETAI $1,144,000$1,194,000$1,081,000 4.2%5.8%149 PAPAMOA $1,023,000$1,108,000$947,000 7.7%8.0%118 PAPAMOABEACH $1,199,000$1,256,000$1,129,000 4.5%6.2%666 PARKVALE $709,000$768,000$676,000 7.7%4.9%63HousesinHamilton.Thecity'saverageproperty valuedropped2% in thelastthreemonths. Photo/ FionaGoodall LOCATION CURRENT AVERAGE PROPERTY VALUE THREE MONTHS AGO 12 MONTHS AGO QoQ CHANGE YoY CHANGE SETTLED SALES LAST12 MONTHS LOCATION CURRENT AVERAGE PROPERTY VALUE THREE MONTHS AGO 12 MONTHS AGO QoQ CHANGE YoY CHANGE SETTLED SALES LAST12 MONTHS
TAMATEA $692,000$748,000$705,000 7.5% 1.8%90
PIRIMAI $694,000$761,000$712,000 8.8% 2.5%70
MINDEN $1,787,000$1,882,000$1,562,000 5.0%14.4%31
WHAKATANE $807,000$824,000$749,000 2.1%7.7%546 COASTLANDS $1,034,000$1,059,000$974,000 2.4%6.2%36 EDGECUMBE $669,000$659,000$621,0001.5%7.7%42 MATATA $878,000$891,000$812,000 1.5%8.1%31 OHOPE $1,231,000$1,335,000$1,209,000 7.8%1.8%95 WHAKATANE $729,000$726,000$664,0000.4%9.8%247 WAINUI $1,509,000$1,607,000$1,476,000 6.1%2.2%23 WHATAUPOKO $895,000$934,000$867,000 4.2%3.2%74 HAWKE'SBAY$869,000$917,000$836,000 -5.2%3.9%2903 CENTRALHAWKE'SBAY$720,000$756,000$621,000 4.8%15.9%371 OTANE $846,000$894,000$740,000 5.4%14.3%52 TAKAPAU
TEPUNA $2,019,000$2,123,000$1,756,000 4.9%15.0%23
AONGATETE
PYESPA $1,218,000$1,242,000$1,154,000 1.9%5.5%316
ONEROOF VALOCITYHOUSE VALUEINDEX
OROPI
WESTERNBAYOFPLENTY$1,282,000$1,337,000$1,134,000 4.1%13.1%1008
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KATIKATI $880,000$889,000$770,000 1.0%14.3%154
WAIPUKURAU
FLAXMERE $497,000$529,000$491,000 6.0%1.2%126
WAIPAWA
WESTSHORE $1,194,000$1,230,000$1,168,000 2.9%2.2%31
MAHORA $775,000$841,000$766,000 7.8%1.2%75
$1,547,000$1,617,000$1,350,000 4.3%14.6%34
OMOKOROA
The7.2%fallin Wairoa'saveragepropertyvalueoverthequarteris abrutal turnaroundforthe TA,whichhadenjoyed a5.3%valuesurgeinthethreemonthsto theendofMay -moreevidenceoftheinstabilitythatgoeswith alow-salesmarkets.
POIKE
MARAENUI $542,000$605,000$554,000 10.4% 2.2%53
TEPUKE $896,000$923,000$788,000 2.9%13.7%183
$1,694,000$1,771,000$1,471,000 4.3%15.2%27
NAPIER $878,000$933,000$872,000 5.9%0.7%1173
PARKVALE $730,000$775,000$729,000 5.8%0.1%79
Valuedropsofmorethan5%inHorowhenuaandPalmerstonNorthdragged Manawatu-Whanganui'soverallaveragepropertyvaluedown4.1%($28,000)overthe quarterto$659,000.OnlyRuapehusawvaluegrowth,butagain,lowsalescouldbe maskinggreaterweaknessesin thatmarket.
PUKEHINA
Taranakifinallyjoinedthe restoftheNorthIslandinnegativegrowthterritory,with itsaveragepropertydown1%($7000)over thequarter.NewPlymouthhadthegentlest fall,withitsaveragepropertyvaluedown0.7%($6000) to $798,000.
$723,000$795,000$706,000 9.1%2.4%28
AHURIRI $1,154,000$1,258,000$1,093,000 8.3%5.6%35
ESKDALE $1,393,000$1,525,000$1,321,000 8.7%5.5%23
CENTRAL NORTH ISLAND
TE AWA $901,000$958,000$876,000 5.9%2.9%24
MAREWA $629,000$705,000$669,000 10.8% 6.0%78
BAYVIEW $1,160,000$1,228,000$1,103,000 5.5%5.2%36
CLIVE $978,000$1,059,000$924,000 7.6%5.8%38
TAURANGASOUTH
OMANAWA
Gisborne,Hawke'sBay,Manawatu-Whanganuiand Taranakiallsuffereddropsintheir averagepropertyvalueoverthequarter,withHawke'sBaysufferingthesteepestdecline. Itsaveragepropertyvaluefell5.2%($48,000)to$869,000onthebackofweakmarket conditionsintheregion'stwobiggestcentres,NapierandHastings.Salesvolumesare downintheregion,puttingdownwardspressureonprices.All28NapierandHastings suburbsthatrecorded20ormoresettledsalesinthelast12monthsareinaworse positionnowthantheywereatthestartoftheyear,andpropertyvaluesinsevenare downbyasmuchas6%yearonyear.
HASTINGS$942,000$988,000$903,000 4.7%4.3%1237
WELCOMEBAY $993,000$1,028,000$890,000 3.4%11.6%211
MAYFAIR $664,000$710,000$655,000 6.5%1.4%80
WAIHIBEACH $1,557,000$1,608,000$1,331,000 3.2%17.0%62
FRIMLEY $963,000$1,030,000$906,000 6.5%6.3%76
RAUREKA $685,000$737,000$688,000 7.1% 0.4%67
$1,314,000$1,374,000$1,099,000 4.4%19.6%46
ONEKAWA $660,000$714,000$682,000 7.6% 3.2%105
GISBORNE,HAWKE'SBAY,MANAWATU-WHANGANUIANDTARANAKI
SAINTLEONARDS $667,000$732,000$682,000 8.9% 2.2%45
HOSPITALHILL $1,126,000$1,195,000$1,046,000 5.8%7.6%44
AKINA $679,000$727,000$672,000 6.6%1.0%81
$1,199,000$1,248,000$1,086,000 3.9%10.4%207
WHAKAMARAMA $1,691,000$1,790,000$1,499,000 5.5%12.8%47 $532,000$532,000$423,0000.0%25.8%20 $706,000$725,000$601,000 2.6%17.5%86 $699,000$729,000$592,000 4.1%18.1%138
TAHAWAI
$1,027,000$1,071,000$919,000 4.1%11.8%112
NAPIER SOUTH $762,000$807,000$756,000 5.6%0.8%101
TAURANGA $1,122,000$1,194,000$1,051,000 6.0%6.8%53
GREENMEADOWS $905,000$975,000$879,000 7.2%3.0%125
ATHENREE $1,135,000$1,201,000$1,033,000 5.5%9.9%34
$1,385,000$1,426,000$1,198,000 2.9%15.6%34
$1,418,000$1,493,000$1,223,000 5.0%15.9%31
PAENGAROA $1,154,000$1,181,000$1,001,000 2.3%15.3%34
HASTINGS $669,000 $700,000 $642,000 4.4% 4.2% 69
PORAITI $1,379,000$1,440,000$1,271,000 4.2%8.5%54
TARADALE $934,000$977,000$920,000 4.4%1.5%230
WAIROA$463,000$499,000$388,000 7.2%19.3%122 MAHIA $841,000$910,000$726,000 7.6%15.8%25 WAIROA $339,000$360,000$272,000 5.8%24.6%72 MANAWATU WHANGANUI$659,000$687,000$646,000 4.1%2.0%4965 HOROWHENUA $685,000$724,000$671,000 -5.4%2.1%840 FOXTON $556,000$594,000$543,000 6.4%2.4%79 FOXTONBEACH $682,000$732,000$654,000 6.8%4.3%69 LEVIN $663,000$700,000$645,000 5.3%2.8%462 OHAU $1,072,000$1,130,000$969,000 5.1%10.6%44 SHANNON $554,000$591,000$540,000 6.3%2.6%50 TOKOMARU $763,000$799,000$725,000 4.5%5.2%20 WAITAREREBEACH $728,000$797,000$706,000 8.7%3.1%43 MANAWATU $732,000$745,000$712,000 1.7%2.8%628 FEILDING $709,000$723,000$695,000 1.9%2.0%428 HALCOMBE $836,000$849,000$755,000 1.5%10.7%35 HIMATANGIBEACH $555,000$576,000$538,000 3.6%3.2%24 RONGOTEA $736,000$750,000$694,000 1.9%6.1%32 PALMERSTONNORTH$747,000$792,000$750,000 5.7% 0.4%1587 AOKAUTERE $1,238,000$1,275,000$1,119,000 2.9%10.6%25 ASHHURST $764,000$818,000$763,000 6.6%0.1%73 AWAPUNI $698,000$725,000$697,000 3.7%0.1%156 BUNNYTHORPE $978,000$996,000$896,000 1.8%9.2%37 CLOVERLEA $611,000$677,000$641,000 9.7% 4.7%31 FITZHERBERT $1,037,000$1,088,000$1,033,000 4.7%0.4%96 HIGHBURY $593,000$624,000$586,000 5.0%1.2%107 HOKOWHITU $892,000$930,000$868,000 4.1%2.8%176 KELVINGROVE $880,000$918,000$873,000 4.1%0.8%167 MILSON $696,000$736,000$690,000 5.4%0.9%131 PALMERSTONNORTH $706,000$740,000$691,000 4.6%2.2%128 GISBORNE $706,000$729,000$672,000 3.2%5.1%665 ELGIN $525,000$538,000$495,000 2.4%6.1%31 GISBORNE $586,000$602,000$573,000 2.7%2.3%35 INNER KAITI $734,000$785,000$731,000 6.5%0.4%34 KAITI $530,000$540,000$486,000 1.9%9.1%38 LYTTONWEST $915,000$968,000$909,000 5.5%0.7%31 MAKAURI $1,500,000$1,478,000$1,341,0001.5%11.9%21 MANGAPAPA $676,000$699,000$640,000 3.3%5.6%93 OUTER KAITI $525,000$519,000$471,0001.2%11.5%52 RIVERDALE $817,000$854,000$807,000 4.3%1.2%25 TEHAPARA $613,000$640,000$587,000 4.2%4.4%101 LOCATION CURRENT AVERAGE PROPERTY VALUE THREE MONTHS AGO 12 MONTHS AGO QoQ CHANGE YoY CHANGE SETTLED SALES LAST12 MONTHS LOCATION CURRENT AVERAGE PROPERTY VALUE THREE MONTHS AGO 12 MONTHS AGO QoQ CHANGE YoY CHANGE SETTLED SALES LAST12 MONTHS
32 OneRoof.co.nz
BLUFFHILL $1,151,000$1,236,000$1,105,000 6.9%4.2%53
AWATOTO $1,042,000$1,091,000$961,000 4.5%8.4%33
HAVELOCKNORTH $1,334,000$1,381,000$1,222,000 3.4%9.2%288
INGLEWOOD $677,000$657,000$592,0003.0%14.4%105
TEHOROBEACH $930,000$978,000$914,000
OAKURA $1,315,000$1,363,000$1,164,000 3.5%13.0%23
Shrinkingsalesvolumesarealso acauseforconcern,withthenumberofsettled salesinthe regionfallingfrom9083in the12monthstothe endofMarchto8215in the12monthstothe endofAugust.Theturnaroundinthecapital'sfortuneshasbeen severe.In thethreemonthstoMarch,justthreesuburbs recordeddeclinesintheir averagepropertyvalueandeverysuburbwasupyearonyear.Now,nosuburbis recordingquarterlygrowth,andhousepricesin47outofthecapital's56suburbsare lowerthantheywereayearago,withthepricedropsrangingfromaslittleas $6000 inKhandallah to asmuchas$228,000inOrientalBay.Somesuburbsarelooking particularlyvulnerable:propertyvaluesinPipitea, WellingtonCentral,Mount Victoria, TeAro,OrientalBayandMountCookarelessthan20%aheadofwheretheywerein September 2020.Thecrunchhas reducedPipitea'stwo-yearvaluegaintojust$26,000.
MERRILANDS $822,000$830,000$732,000 1.0%12.3%66
WAIKANAE
MOTUROA $797,000$779,000$684,0002.3%16.5%52
HURWORTH $1,220,000$1,197,000$1,034,0001.9%18.0%29
LOWERHUTT$888,000$970,000$975,000 8.5% 8.9%1578 ALICETOWN $918,000$1,014,000$1,026,000 9.5% 10.5%35 AVALON $832,000$918,000$895,000 9.4% 7.0%72 $1,042,000$1,164,000$1,096,000 10.5% 4.9%48 BOULCOTT $977,000$1,106,000$1,111,000 11.7% 12.1%36 EASTBOURNE $1,240,000$1,414,000$1,334,000 12.3% 7.0%52 $904,000$1,017,000$997,000
THESLUMP hashitGreater Wellingtonhard.Notonlydidtheregionsufferthe country'sbiggest valuedropoverthelastthree months,butGreater Wellingtonproperty valuesarenow5.9%($62,000) belowwheretheywereinSeptember2021, with therapid gainsmadeattheendoflastyearand startofthisyearallgone.
$992,000 5.9%
EPUNI
LYNMOUTH $703,000$734,000$643,000 4.2%9.3%26
HURDON $827,000$833,000$737,000 0.7%12.2%20
BELMONT
HIGHLANDS PARK $964,000$984,000$850,000 2.0%13.4%42
11.1% 9.3%41 FAIRFIELD $855,000$1,002,000$973,000 14.7% 12.1%44 HUTTCENTRAL $1,235,000$1,349,000$1,282,000 8.5% 3.7%43 KELSON $914,000$1,024,000$999,000 10.7% 8.5%43 MAUNGARAKI $975,000$1,140,000$1,060,000 14.5% 8.0%41 NAENAE $712,000$794,000$779,000 10.3% 8.6%110 NORMANDALE $1,004,000$1,100,000$1,064,000 8.7% 5.6%22 PETONE $982,000$1,056,000$1,047,000 7.0% 6.2%124 STOKES VALLEY $725,000$801,000$784,000 9.5% 7.5%157 TAITA $702,000$780,000$776,000 10.0% 9.5%88 WAINUIOMATA $719,000$777,000$777,000 7.5% 7.5%337 WAIWHETU $854,000$966,000$952,000 11.6% 10.3%73 WATERLOO $960,000$1,097,000$1,060,000 12.5% 9.4%67 WOBURN $1,345,000$1,472,000$1,419,000 8.6% 5.2%46 MASTERTON $768,000$789,000$726,000 2.7%5.8%637 KURIPUNI $632,000$654,000$609,000 3.4%3.8%57 LOCATION CURRENT AVERAGE PROPERTY VALUE THREE MONTHS AGO 12 MONTHS AGO QoQ CHANGE YoY CHANGE SETTLED SALES LAST12 MONTHS LOCATION CURRENT AVERAGE PROPERTY VALUE THREE MONTHS AGO 12 MONTHS AGO QoQ CHANGE YoY CHANGE SETTLED SALES LAST12 MONTHS
RAUMATIBEACH $1,002,000$1,059,000$993,000
OneRoof.co.nz 33
NEWPLYMOUTH $887,000$935,000$798,000 5.1%11.2%100
GREATER WELLINGTON
SPOTSWOOD $588,000$580,000$528,0001.4%11.4%43 STRANDON $1,013,000$1,010,000$903,0000.3%12.2%52 UPPER VOGELTOWN $710,000$720,000$642,000 1.4%10.6%28 VOGELTOWN $655,000$667,000$599,000 1.8%9.3%45 WAITARA $514,000$508,000$456,0001.2%12.7%108 WAIWHAKAIHO $1,154,000$1,151,000$996,0000.3%15.9%24 WELBOURN $723,000$756,000$681,000 4.4%6.2%35 WESTOWN $665,000$663,000$603,0000.3%10.3%121 WHALERS GATE $799,000$818,000$701,000 2.3%14.0%54 SOUTH TARANAKI $515,000$525,000$441,000 1.9%16.8%588 ELTHAM $446,000$458,000$392,000 2.6%13.8%36 HAWERA $569,000$568,000$488,0000.2%16.6%301 MANAIA $399,000$403,000$320,000 1.0%24.7%27 NORMANBY $531,000$559,000$451,000 5.0%17.7%27 OPUNAKE $507,000$525,000$442,000 3.4%14.7%59 PATEA $332,000$348,000$258,000 4.6%28.7%29 WAVERLEY $444,000$440,000$349,0000.9%27.2%35 STRATFORD $574,000$584,000$517,000 1.7%11.0%223 STRATFORD $548,000$555,000$489,000 1.3%12.1%170 GREATERWELLINGTON$992,000$1,091,000$1,054,000 9.1% 5.9%8215 CARTERTON $850,000$877,000$803,000 3.1%5.9%252 CARTERTON $726,000$769,000$704,000 5.6%3.1%168 KAPITICOAST $1,003,000$1,039,000$996,000 3.5%0.7%1121 HAUTERE $1,509,000$1,536,000$1,372,000 1.8%10.0%21 OTAKI $815,000$855,000$784,000 4.7%4.0%136 OTAKIBEACH $729,000$776,000$723,000 6.1%0.8%63 PAEKAKARIKI $1,092,000$1,124,000$1,089,000 2.8%0.3%24 PARAPARAUMU $904,000$948,000$911,000 4.6% 0.8%167 PARAPARAUMUBEACH $991,000$1,031,000$967,000
LOWER VOGELTOWN $748,000$759,000$667,000 1.4%12.1%41
FRANKLEIGH PARK $744,000$747,000$657,000 0.4%13.2%57 GLEN AVON $804,000$802,000$713,0000.2%12.8%22
Get More| Get Moved| Get Sold www.professionals.co.nzLicensedREAA2008 ROSLYN $612,000$661,000$616,000 7.4% 0.6%107 TAKARO $617,000$649,000$619,000 4.9% 0.3%108 TERRACEEND $706,000$758,000$707,000 6.9% 0.1%102 WESTEND $671,000$723,000$681,000 7.2% 1.5%80 WESTBROOK $624,000$675,000$627,000 7.6% 0.5%41 RANGITIKEI $554,000$564,000$508,000 1.8%9.1%293 BULLS $606,000$631,000$562,000 4.0%7.8%49 MARTON $603,000$615,000$528,000 2.0%14.2%154 TAIHAPE $414,000$415,000$391,000 0.2%5.9%45 RUAPEHU $462,000$458,000$425,0000.9%8.7%287 OHAKUNE $571,000$583,000$531,000 2.1%7.5%94 RAETIHI $414,000$405,000$363,0002.2%14.0%25 TAUMARUNUI $375,000$378,000$352,000 0.8%6.5%65 TARARUA $528,000$545,000$505,000 -3.1%4.6%435 DANNEVIRKE $525,000$540,000$483,000 2.8%8.7%164 EKETAHUNA $492,000$505,000$453,000 2.6%8.6%33 PAHIATUA $544,000$564,000$526,000 3.5%3.4%105 WOODVILLE $489,000$497,000$472,000 1.6%3.6%72 WHANGANUI $578,000$604,000$563,000 4.3%2.7%895 ARAMOHO $512,000$539,000$475,000 5.0%7.8%83 CASTLECLIFF $447,000$482,000$427,000 7.3%4.7%121 DURIEHILL $643,000$675,000$626,000 4.7%2.7%34 GONVILLE $449,000$487,000$448,000 7.8%0.2%121 OTAMATEA $931,000$984,000$892,000 5.4%4.4%25 SAINTJOHNSHILL $726,000$764,000$713,000 5.0%1.8%28 SPRINGVALE $632,000$653,000$601,000 3.2%5.2%90 TAWHERO $557,000$591,000$556,000 5.8%0.2%58 WESTMERE $1,078,000$1,102,000$986,000 2.2%9.3%21 WHANGANUI $421,000$450,000$424,000 6.4% 0.7%95 WHANGANUI EAST $484,000$505,000$482,000 4.2%0.4%119 TARANAKI $723,000$730,000$642,000 1.0%12.6%2411 NEWPLYMOUTH $798,000$804,000$714,000 0.7%11.8%1600 BELLBLOCK $781,000$786,000$672,000 0.6%16.2%132 BLAGDON $600,000$621,000$553,000 3.4%8.5%32 FERNDALE $822,000$823,000$726,000 0.1%13.2%21 FITZROY $958,000$967,000$873,000 0.9%9.7%38
OKATO $701,000$673,000$602,0004.2%16.4%33 3.9%2.5%179 5.4%0.9%82 SOUTH $994,000$1,069,000$1,012,000 7.0% 1.8%79 4.9%1.8%21 $1,049,000$1,085,000$1,018,000 3.3%3.0%218 WAIKANAEBEACH $1,083,000$1,153,000$1,118,000 6.1% 3.1%78
AVERAGEPROPERTY VALUEYEARON YEARCHANGE
MARFELL $477,000$478,000$425,000 0.2%12.2%45
RAUMATI
Thecapitalsufferedthe region'ssteepestdecline,withtheaveragepropertyvaluein thecityfalling 11.7%($151,000)inthelastthreemonthsto$1.137m.Alsofallinghard overthequarterwereUpperHutt(-9%to$874,000);LowerHutt(-8.5%to$888,000) andPorirua(-8.3%to$947,000).Propertyvaluesinallfour TAsweredownyearon yearbyasmuchas 8%, whichwillprovidemoreaffordableopportunitiestofirst-home buyersandinvestorsinthe region,butalsoleavemanyhomeownerswhoboughtat theheightofthemarketatriskofnegativeequity.
PICTON $676,000$688,000$642,000 1.7%5.3%89
MARLBOROUGH,NELSON, TASMANANDWESTCOAST
TEARO $796,000$871,000$810,000
WAKATU $771,000$810,000$722,000 4.8%6.8%20 WASHINGTONVALLEY $645,000$702,000$653,000 8.1% 1.2%44
TAHUNANUI $749,000$789,000$682,000 5.1%9.8%88
CAMBORNE $1,008,000$1,120,000$1,067,000 10.0% 5.5%29
TITAHIBAY $794,000$889,000$873,000 10.7% 9.0%92
WALLACEVILLE $833,000$927,000$912,000 10.1% 8.7%100 AROVALLEY $1,110,000$1,295,000$1,202,000 14.3% 7.7%38 BERHAMPORE $962,000$1,097,000$1,053,000 12.3% 8.6%62
MASTERTON
STEPNEYVILLE $1,246,000$1,358,000$1,241,000 8.2%0.4%21
KARORI $1,301,000$1,385,000$1,332,000 6.1% 2.3%210
WestCoastwasthesole regionto registergrowthinthelastthreemonths.Its averagepropertyvaluewasup2.5%($10,000)to$403,000,drivenby arelatively strongshowingby Westland(up4.2%)andGrey(2.6%).ThefactthatNewZealand's cheapesthousingmarketisstillgrowingwhilethe restofthecountryisin aslumpis telling,butlowsalesactivity(the region recorded 1107settledsalesinthe12months totheendofAugust,downfrom1365inthe12monthstotheendofMarch)makesit hardtodrawtoomanyhardconclusionsaboutpriceandaffordability.
ThequarterlydeclinesinMarlboroughand Tasmanwererelativelygentler -1.4% and2% respectively -buttheslumphaseatenupmuchofthegainsmadeatthestartof theyear.
FEATHERSTON $692,000$743,000$690,000 6.9%0.3%77
STOKE $801,000$823,000$755,000 2.7%6.1%306
NELSON SOUTH $812,000$867,000$771,000 6.3%5.3%75
JOHNSONVILLE $956,000$1,036,000$999,000 7.7% 4.3%163
ELDERSLEA $810,000$908,000$897,000 10.8% 9.7%36
BROOKLYN $1,241,000$1,380,000$1,267,000 10.1% 2.1%88 CHURTONPARK $1,186,000$1,351,000$1,259,000 12.2% 5.8%106
$980,000$1,116,000$1,080,000 12.2% 9.3%37
PUKERUABAY $967,000$1,112,000$1,054,000 13.0% 8.3%22
WESTCOAST $403,000$393,000$355,0002.5%13.5%1107 BULLER $375,000$371,000$329,0001.1%14.0%365 KARAMEA $412,000$393,000$336,0004.8%22.6%21 REEFTON $324,000$306,000$262,0005.9%23.7%29 WESTPORT $371,000$381,000$329,000 2.6%12.8%179 LANSDOWNE $734,000$760,000$692,000
$1,175,000$1,191,000$1,078,000 1.3%9.0%64
PAPARANGI $953,000$1,101,000$1,003,000 13.4% 5.0%40
SEATOUN $2,007,000$2,267,000$1,979,000 11.5%1.4%45
WADESTOWN $1,412,000$1,636,000$1,543,000
MARYBANK $974,000$1,001,000$911,000 2.7%6.9%21
PAPAKOWHAI
BRITANNIAHEIGHTS $1,551,000$1,682,000$1,469,000 7.8%5.6%20 ENNERGLYNN $942,000$994,000$870,000 5.2%8.3%30
MAUPUIA $1,085,000$1,190,000$1,081,000 8.8%0.4%24
ATAWHAI $973,000$1,024,000$936,000 5.0%4.0%57
PORIRUA $947,000$1,033,000$997,000 8.3% 5.0%748
TOTARA PARK $749,000$848,000$838,000 11.7% 10.6%36
ROSENEATH $1,714,000$1,947,000$1,930,000 12.0% 11.2%21
BISHOPDALE $794,000$831,000$739,000 4.5%7.4%33
NORTHLAND $1,247,000$1,467,000$1,321,000 15.0% 5.6%59
MAORIBANK $691,000$806,000$786,000 14.3% 12.1%24
TIMBERLEA $843,000$973,000$932,000 13.4% 9.5%43
TAKAPUWAHIA $679,000$770,000$725,000 11.8% 6.3%21
WITHERLEA $794,000$816,000$750,000 2.7%5.9%150
BROWNOWL $844,000$982,000$953,000 14.1% 11.4%27
MONACO $722,000$785,000$713,000 8.0%1.3%23
WAIKAWA $967,000$983,000$877,000 1.6%10.3%39
MIRAMAR $1,177,000$1,328,000$1,203,000 11.4% 2.2%112
HATAITAI $1,313,000$1,513,000$1,394,000 13.2% 5.8%88
CLOUSTONPARK $741,000$854,000$837,000 13.2% 11.5%32
PAREMATA $1,075,000$1,204,000$1,123,000 10.7% 4.3%32
PLIMMERTON $1,148,000$1,259,000$1,167,000 8.8% 1.6%27
HAVELOCK $722,000$723,000$630,000 0.1%14.6%30
WHITBY $1,091,000$1,139,000$1,116,000 4.2% 2.2%215
CANNONSCREEK $603,000$698,000$642,000 13.6% 6.1%31
BIRCHVILLE $784,000$896,000$869,000 12.5% 9.8%41
SILVERSTREAM $1,004,000$1,086,000$1,034,000 7.6% 2.9%60
CROFTONDOWNS $1,179,000$1,363,000$1,204,000 13.5% 2.1%28
GRENADAVILLAGE $1,135,000$1,306,000$1,188,000 13.1% 4.5%40
KHANDALLAH $1,518,000$1,661,000$1,524,000 8.6% 0.4%119
UPPERHUTT
WELLINGTON$1,137,000$1,288,000$1,213,000 11.7% 6.3%2796
MAYFIELD $605,000$614,000$605,000 1.5%0.0%31
EBDENTOWN $756,000$848,000$844,000 10.8% 10.4%54
KILBIRNIE $1,021,000$1,183,000$1,092,000 13.7% 6.5%41
AOTEA $1,357,000$1,465,000$1,381,000 7.4% 1.7%92
STRATHMORE PARK $1,190,000$1,375,000$1,172,000 13.5%1.5%39 TAWA $985,000$1,072,000$1,011,000 8.1% 2.6%195 8.6% 1.7%242 9.9% 4.6%74 13.7% 8.5%44
WELLINGTONCENTRAL $627,000$668,000$634,000 6.1% 1.1%64 WILTON $1,097,000$1,286,000$1,129,000 14.7% 2.8%33 WOODRIDGE $1,045,000$1,206,000$1,110,000 13.3% 5.9%25 LOCATION CURRENT AVERAGE PROPERTY VALUE THREE MONTHS AGO 12 MONTHS AGO QoQ CHANGE YoY CHANGE SETTLED SALES LAST12 MONTHS LOCATION CURRENT AVERAGE PROPERTY VALUE THREE MONTHS AGO 12 MONTHS AGO QoQ CHANGE YoY CHANGE SETTLED SALES LAST12 MONTHS
THEBROOK $758,000$806,000$708,000 6.0%7.1%27
TOITOI $568,000$625,000$565,000 9.1%0.5%45
UPPER SOUTH ISLAND
BROADMEADOWS $1,012,000$1,152,000$1,070,000 12.2% 5.4%21
MARLBOROUGH $795,000$806,000$751,000 1.4%5.9%1182
1.8%11.0%28 MAPUA $1,169,000$1,187,000$1,056,000 1.5%10.7%36 MOTUEKA $800,000$815,000$753,000 1.8%6.2%141 REDWOOD VALLEY $1,673,000$1,641,000$1,454,0002.0%15.1%30 RICHMOND $910,000$939,000$849,000 3.1%7.2%446 RUBYBAY $1,566,000$1,561,000$1,402,0000.3%11.7%26 TAKAKA $711,000$746,000$678,000
RENWICK $790,000$811,000$753,000 2.6%4.9%46
NELSON $1,179,000$1,269,000$1,107,000 7.1%6.5%26
$874,000$960,000$948,000 9.0% 7.8%747
LYALLBAY $1,118,000$1,291,000$1,179,000 13.4% 5.2%43
ISLANDBAY $1,326,000$1,455,000$1,355,000 8.9% 2.1%90
NEWLANDS $956,000$1,072,000$993,000 10.8% 3.7%105
NELSON $850,000$903,000$823,000 -5.9%3.3%960
KENEPURU $936,000$1,056,000$1,004,000 11.4% 6.8%39
TASMAN $994,000$1,014,000$924,000 2.0%7.6%1190 APPLEBY $1,221,000$1,230,000$1,212,000 0.7%0.7%60 BRIGHTWATER $1,029,000$1,044,000$933,000 1.4%10.3%61 HOPE $1,396,000$1,392,000$1,215,0000.3%14.9%24 KAITERITERI $1,463,000$1,490,000$1,318,000 4.7%4.9%34 2.0%10.5%66 3.4%6.1%107 $645,000$667,000$608,000 3.3%6.1%216 $707,000$736,000$669,000 3.9%5.7%154
SOUTH WAIRARAPA$1,022,000$1,049,000$958,000 2.6%6.7%336
BURLEIGH $1,068,000$1,089,000$979,000 1.9%9.1%21
THE WOOD $834,000$905,000$818,000 7.8%2.0%63
PINEHAVEN $853,000$952,000$910,000 10.4% 6.3%32
TRENTHAM $774,000$870,000$827,000 11.0% 6.4%142
MELROSE $1,165,000$1,357,000$1,300,000 14.1% 10.4%27
NEWTOWN $1,091,000$1,260,000$1,157,000 13.4% 5.7%91 NGAIO $1,246,000$1,392,000$1,268,000 10.5% 1.7%74
BLENHEIM $638,000$640,000$619,000 0.3%3.1%178
SOLWAY
RIVERSTONETERRACES
REDWOODTOWN $625,000$642,000$610,000 2.6%2.5%142
34 OneRoof.co.nz
UPPERMOUTERE $1,351,000$1,346,000$1,196,0000.4%13.0%32 WAKEFIELD $970,000$990,000$878,000
$1,164,000$1,292,000$1,193,000 9.9% 2.4%31
Get More| Get Moved| Get Sold www.professionals.co.nzLicensedREAA2008 ONEROOF VALOCITYHOUSE VALUEINDEX
KELBURN $1,672,000$1,930,000$1,773,000 13.4% 5.7%42
RIVERSDALE $584,000$599,000$587,000 2.5% 0.5%30
Propertyvaluesintherestof theupperSouthIslandstruggledoverthequarter. Nelson's averagepropertyvaluefell5.9%($53,000)to$850,000asbuyerscontinued their retreat,but theseverefloodingthathaswreakedhavocacrossthe regionislikely tohave abiggerimpactonvaluesinthemonthsahead.
ASCOT PARK $727,000$809,000$787,000 10.1% 7.6%29
GREYTOWN $1,104,000$1,154,000$1,016,000 4.3%8.7%103
MOUNTCOOK $894,000$1,007,000$963,000 11.2% 7.2%55
THORNDON $1,127,000$1,251,000$1,181,000
MARTINBOROUGH
SPRINGLANDS $870,000$893,000$805,000 2.6%8.1%139
RANUI $712,000$794,000$734,000 10.3% 3.0%45
MOUNTVICTORIA $1,386,000$1,610,000$1,470,000 13.9% 5.7%64
MAIREHAU $642,000$647,000$550,000 0.8%16.7%169
NORTHCOTE $599,000$604,000$519,000 0.8%15.4%62
At asuburblevel,thebiggestdropwasinAkaroa,ontheoutskirtsofChristchurch. Theholidaytown'saveragepropertyvaluefell 7.2%($73,000)to$945,000.Thenext biggestdropswereinSelwyn'sSpringston(down6.8%)andDunsandel(6.6%).South NewBrighton wasChristchurch'sbiggestrise -itsaveragepropertyvaluewasup2.9% to$613,000 -but of theregion'sbiggestwinners overthequarterwereKaikouraFlat,in Kaikoura(up 11.7%to$870,000),andBenOhau,inMackenzie(up9.5%to$1.09m).
HEIHEI $610,000$617,000$521,000 1.1%17.1%51
$532,000$525,000$444,0001.3%19.8%50
SYDENHAM $569,000$578,000$512,000 1.6%11.1%154
SHIRLEY $662,000$668,000$566,000 0.9%17.0%104
EDGEWARE $558,000$557,000$483,0000.2%15.5%105
DALLINGTON $573,000$581,000$514,000 1.4%11.5%35
BRYNDWR $805,000$798,000$709,0000.9%13.5%117
MERIVALE $1,582,000$1,534,000$1,357,0003.1%16.6%125
RICCARTON $764,000$768,000$668,000 0.5%14.4%207
STROWAN $1,300,000$1,299,000$1,070,0000.1%21.5%73
HALSWELL $894,000$907,000$747,000 1.4%19.7%210
RUSSLEY $728,000$735,000$639,000 1.0%13.9%61
$233,000$229,000$202,0001.7%15.3%25 WESTLAND $449,000$431,000$399,0004.2%12.5%329 ARAHURAVALLEY $604,000$577,000$550,0004.7%9.8%25 FRANZJOSEFGLACIER $490,000$468,000$439,0004.7%11.6%30 HOKITIKA $397,000$396,000$361,0000.3%10.0%97 RUATAPU $547,000$541,000$477,0001.1%14.7%21 CANTERBURY$786,000$795,000$681,000 1.1%15.4%13867 ASHBURTON $609,000$610,000$533,000 0.2%14.3%921 ALLENTON $623,000$622,000$536,0000.2%16.2%214 ASHBURTON $508,000$498,000$441,0002.0%15.2%119 HAMPSTEAD $441,000$441,000$378,0000.0%16.7%86 HUNTINGDON $1,047,000$1,039,000$958,0000.8%9.3%48 METHVEN $684,000$676,000$585,0001.2%16.9%113 NETHERBY $542,000$549,000$471,000 1.3%15.1%60 RAKAIA $558,000$545,000$476,0002.4%17.2%68 TINWALD $599,000$597,000$533,0000.3%12.4%130 CHRISTCHURCH $790,000$799,000$687,000 1.1%15.0%7212 ADDINGTON $556,000$559,000$473,000 0.5%17.5%113 AIDANFIELD $958,000$942,000$802,0001.7%19.5%34 AKAROA $945,000$1,018,000$881,000 7.2%7.3%21 ARANUI $465,000$470,000$401,000 1.1%16.0%91 AVONDALE $543,000$536,000$457,0001.3%18.8%72 AVONHEAD $839,000$830,000$728,0001.1%15.2%204 AVONSIDE $545,000$533,000$470,0002.3%16.0%28 BECKENHAM $838,000$875,000$756,000 4.2%10.8%31 BELFAST $697,000$708,000$609,000 1.6%14.4%80 BISHOPDALE $695,000$694,000$588,0000.1%18.2%164
MOUNTPLEASANT $1,167,000$1,141,000$963,0002.3%21.2%67
SUMNER $1,145,000$1,156,000$1,006,000 1.0%13.8%30
UPPERRICCARTON $705,000$731,000$631,000 3.6%11.7%93
RICHMOND $554,000$570,000$483,000 2.8%14.7%88
RUNANGA
HAREWOOD $1,125,000$1,116,000$941,0000.8%19.6%39
HILLMORTON $701,000$700,000$597,0000.1%17.4%50
SOMERFIELD $759,000$778,000$645,000 2.4%17.7%110
CHRISTCHURCHCENTRAL $716,000$722,000$614,000 0.8%16.6%243
NORTHWOOD $1,145,000$1,157,000$945,000 1.0%21.2%111
PARKLANDS $759,000$747,000$647,0001.6%17.3%178
HUNTSBURY $1,139,000$1,139,000$991,0000.0%14.9%57
NORTHNEWBRIGHTON $569,000$559,000$478,0001.8%19.0%91
SOCKBURN $659,000$663,000$566,000 0.6%16.4%74
REDCLIFFS $1,155,000$1,204,000$1,038,000 4.1%11.3%45
LINWOOD $491,000$494,000$423,000 0.6%16.1%225
ISLINGTON $587,000$583,000$499,0000.7%17.6%23
BROOMFIELD $711,000$722,000$627,000 1.5%13.4%31
PHILLIPSTOWN $454,000$463,000$395,000 1.9%14.9%111
HOONHAY $701,000$699,000$583,0000.3%20.2%115
CANTERBURY
OPAWA $786,000$776,000$680,0001.3%15.6%20
SOUTHSHORE $710,000$692,000$592,0002.6%19.9%21
SAINTMARTINS $747,000$767,000$645,000 2.6%15.8%48
SPREYDON $654,000$667,000$569,000 1.9%14.9%166
WAIMAIRIBEACH $952,000$964,000$827,000 1.2%15.1%24
FENDALTON $1,845,000$1,820,000$1,620,0001.4%13.9%103
$786,000 15.4% AVERAGEPROPERTY VALUEYEARON YEARCHANGE OneRoof.co.nz 35
PAPANUI $777,000$794,000$667,000 2.1%16.5%137
CASHMERE $1,144,000$1,146,000$950,000 0.2%20.4%94
WAINONI $491,000$492,000$439,000 0.2%11.8%58 WALTHAM $508,000$518,000$433,000 1.9%17.3%93 WESTMORLAND $1,172,000$1,149,000$968,0002.0%21.1%27 WIGRAM $906,000$911,000$737,000 0.5%22.9%77 WOOLSTON $547,000$558,000$474,000 2.0%15.4%250 YALDHURST $1,091,000$1,081,000$928,0000.9%17.6%34 HURUNUI $665,000$679,000$585,000 2.1%13.7%407 AMBERLEY $701,000$717,000$613,000 2.2%14.4%119 HANMERSPRINGS $746,000$777,000$671,000 4.0%11.2%100 LEITHFIELD $661,000$672,000$567,000 1.6%16.6%40 KAIKOURA$761,000$672,000$642,00013.2%18.5%116 KAIKOURA $699,000$631,000$596,00010.8%17.3%56 KAIKOURAFLAT $870,000$779,000$727,00011.7%19.7%32 LOCATION CURRENT AVERAGE PROPERTY VALUE THREE MONTHS AGO 12 MONTHS AGO QoQ CHANGE YoY CHANGE SETTLED SALES LAST12 MONTHS LOCATION CURRENT AVERAGE PROPERTY VALUE THREE MONTHS AGO 12 MONTHS AGO QoQ CHANGE YoY CHANGE SETTLED SALES LAST12 MONTHS
ILAM $966,000$982,000$863,000 1.6%11.9%191
TEMPLETON $864,000$836,000$699,0003.3%23.6%33
KAINGA $548,000$543,000$472,0000.9%16.1%29
HILLSBOROUGH $814,000$833,000$693,000 2.3%17.5%46
BURWOOD $686,000$677,000$568,0001.3%20.8%163
CASEBROOK $846,000$831,000$700,0001.8%20.9%92
LYTTELTON $768,000$777,000$663,000 1.2%15.8%29
ThreeofCanterbury'snine TAswerestillenjoyinggrowth overthequarter: Kaikoura'saveragepropertyvaluewasup13.2%to$761,000;Mackenzie'swasup4% to$801,000and Waimatewasup1.8%$515,000.Homeowners in thosedistrictsshould avoid readingtoomuchinto thesefiguresaslowsales volumesinallthreecouldbe leadingtovolatilityinthemarket.Selwyn, theregion'smostexpensive TA,sufferedthe biggestdrop,at3.7%,whileChristchurch'sdeclinewas arelativelysmall1.1%.
BROMLEY
NEWBRIGHTON $540,000$542,000$461,000 0.4%17.1%148
MARSHLAND $1,126,000$1,117,000$904,0000.8%24.6%86
ST ALBANS $873,000$894,000$786,000 2.3%11.1%389
CANTERBURY'S AVERAGE propertyvalueslipped1.1%($9000)overthequarterto $786,000,butisstillup15%($105,000)yearonyear.Canterburyhasbeenoneofthelast regionstofeelthefullimpactoftheslump,althoughvaluegrowthinthefirsthalfofthe yearwasacrawlcomparedtothe9.3%surgeenjoyedinthelastthreemonthsof2021. Butwhiletheregion'shousingmarketisunlikelytoseethesuper-chargedgrowthrates of2021again,it'sequallyunlikelytoexperiencethesteepdeclinesseeninotherpartsof thecountry,withtheregion'smaincentresstillseenasaffordableanddesirablebybuyers rightnow.
SOUTHNEWBRIGHTON $613,000$596,000$516,0002.9%18.8%43
REDWOOD $683,000$689,000$572,000 0.9%19.4%178
BURNSIDE $902,000$900,000$775,0000.2%16.4%198
HEATHCOTE VALLEY $813,000$841,000$700,000 3.3%16.1%26
HORNBY $614,000$610,000$509,0000.7%20.6%92
Get More| Get Moved| Get Sold www.professionals.co.nzLicensedREAA2008 GREY$397,000$387,000$349,0002.6%13.8%413 BLAKETOWN $270,000$279,000$235,000 3.2%14.9%27 COBDEN $252,000$259,000$221,000 2.7%14.0%58 GREYMOUTH $388,000$387,000$339,0000.3%14.5%98 KARORO $510,000$494,000$455,0003.2%12.1%23 MARSDEN $658,000$636,000$586,0003.5%12.3%21 PAROA $614,000$586,000$548,0004.8%12.0%27
AnaerialviewofLakeTekapo,in Mackenzie,Canterbury. Thetown'saverageproperty valuejumped4%inthelastthreemonths to $1.131m. Photo /GettyImages
Get More| Get Moved| Get Sold www.professionals.co.nzLicensedREAA2008 MACKENZIE $801,000$770,000$720,0004.0%11.3%234 BENOHAU $1,095,000$1,000,000$927,0009.5%18.1%22 FAIRLIE $545,000$520,000$478,0004.8%14.0%37 LAKETEKAPO $1,131,000$1,087,000$1,057,0004.0%7.0%50 TWIZEL $749,000$727,000$673,0003.0%11.3%102 SELWYN$988,000$1,026,000$846,000 3.7%16.8%2108 DARFIELD $857,000$875,000$699,000 2.1%22.6%127 DUNSANDEL $849,000$909,000$716,000 6.6%18.6%27 KIRWEE $1,085,000$1,087,000$844,000 0.2%28.6%40 LEESTON $793,000$821,000$657,000 3.4%20.7%86 LINCOLN $1,045,000$1,060,000$863,000 1.4%21.1%353 PREBBLETON $1,337,000$1,378,000$1,104,000 3.0%21.1%124 ROLLESTON $893,000$926,000$783,000 3.6%14.0%983 SOUTHBRIDGE $666,000$696,000$564,000 4.3%18.1%35 SPRINGSTON $1,042,000$1,118,000$864,000 6.8%20.6%58 TAITAPU $1,513,000$1,568,000$1,229,000 3.5%23.1%37 WESTMELTON $1,419,000$1,431,000$1,138,000 0.8%24.7%104 WINDWHISTLE $741,000$766,000$608,000 3.3%21.9%26 TIMARU $582,000$584,000$519,000 0.3%12.1%1096 GERALDINE $581,000$582,000$513,000 0.2%13.3%100 GLENITI $799,000$808,000$716,000 1.1%11.6%79 GLENWOOD $550,000$539,000$488,0002.0%12.7%49 HIGHFIELD $606,000$598,000$528,0001.3%14.8%96 KENSINGTON $459,000$452,000$405,0001.5%13.3%31 MAORIHILL $575,000$575,000$534,0000.0%7.7%31 MARCHWIEL $526,000$525,000$462,0000.2%13.9%75 OCEANVIEW $632,000$631,000$556,0000.2%13.7%23 PARKSIDE $447,000$447,000$413,0000.0%8.2%74 PLEASANTPOINT $588,000$577,000$510,0001.9%15.3%37 SEAVIEW $468,000$472,000$431,000 0.8%8.6%60 TEMUKA $498,000$491,000$437,0001.4%14.0%123 WAIMATAITAI $514,000$508,000$451,0001.2%14.0%47 WATLINGTON $460,000$467,000$420,000 1.5%9.5%32 WESTEND $492,000$491,000$438,0000.2%12.3%67 WAIMAKARIRI $838,000$846,000$718,000 0.9%16.7%1598 ASHLEY $986,000$991,000$822,000 0.5%20.0%20 BURNTHILL $923,000$907,000$786,0001.8%17.4%26 CUST $1,099,000$1,072,000$903,0002.5%21.7%20 EYREWELL $1,038,000$1,033,000$860,0000.5%20.7%26 FERNSIDE $1,258,000$1,269,000$1,076,000 0.9%16.9%32 KAIAPOI $686,000$694,000$586,000 1.2%17.1%302 LOBURN $1,119,000$1,103,000$916,0001.5%22.2%49 OHOKA $1,465,000$1,448,000$1,200,0001.2%22.1%33 OXFORD $691,000$705,000$591,000 2.0%16.9%81 PEGASUS $854,000$867,000$702,000 1.5%21.7%198 RANGIORA $723,000$725,000$623,000 0.3%16.1%447 SEFTON $1,003,000$984,000$819,0001.9%22.5%20 SWANNANOA $1,238,000$1,237,000$1,030,0000.1%20.2%46 WAIKUKUBEACH $659,000$669,000$580,000 1.5%13.6%31 WOODEND $749,000$772,000$640,000 3.0%17.0%176 WAIMATE $515,000$506,000$432,0001.8%19.2%175 WAIMATE $496,000$488,000$410,0001.6%21.0%142
LOCATION CURRENT AVERAGE PROPERTY VALUE THREE MONTHS AGO 12 MONTHS AGO QoQ CHANGE YoY CHANGE SETTLED SALES LAST12 MONTHS LOCATION CURRENT AVERAGE PROPERTY VALUE THREE MONTHS AGO 12 MONTHS AGO QoQ CHANGE YoY CHANGE SETTLED SALES LAST12 MONTHS 36 OneRoof.co.nz
ARROWTOWN $2,443,000$2,388,000$1,983,0002.3%23.2%99
WAITAKI $571,000$561,000$489,0001.8%16.8%583
SAWYERSBAY $711,000$732,000$656,000 2.9%8.4%34 SHIELHILL $832,000$891,000$830,000 6.6%0.2%22
FORBURY $484,000$506,000$498,000 4.3% 2.8%26 GREENISLAND $625,000$657,000$642,000 4.9% 2.6%68
HALFWAYBUSH $677,000$712,000$664,000 4.9%2.0%33
OAMARUNORTH $507,000$502,000$438,0001.0%15.8%140
PALMERSTON $443,000$437,000$395,0001.4%12.2%42
3.3%4.2%56 OTATARA $759,000$764,000$689,000 0.7%10.2%86 RICHMOND $497,000$524,000$467,000 5.2%6.4%64 ROSEDALE $738,000$742,000$658,000 0.5%12.2%30 SEAWARDBUSH $959,000$956,000$851,0000.3%12.7%21 STRATHERN $378,000$397,000$357,000 4.8%5.9%90 TURNBULLTHOMSON PARK $386,000$402,000$370,000 4.0%4.3%20 WAIKIWI $627,000$630,000$570,000 0.5%10.0%80 WAVERLEY $575,000$591,000$527,000 2.7%9.1%44 WINDSOR $590,000$593,000$555,000 0.5%6.3%106 SOUTHLAND $566,000$572,000$494,000 1.0%14.6%614 LUMSDEN $359,000$367,000$308,000 2.2%16.6%26 MAKAREWA $730,000$733,000$658,000 0.4%10.9%26 MANAPOURI $631,000$625,000$559,0001.0%12.9%20 RIVERSDALE $498,000$507,000$424,000 1.8%17.5%20 RIVERTON $644,000$651,000$561,000 1.1%14.8%61 TEANAU $712,000$711,000$645,0000.1%10.4%152 WINTON $599,000$610,000$530,000 1.8%13.0%92 LOCATION CURRENT AVERAGE PROPERTY VALUE THREE MONTHS AGO 12 MONTHS AGO QoQ CHANGE YoY CHANGE SETTLED SALES LAST12 MONTHS LOCATION CURRENT AVERAGE PROPERTY VALUE THREE MONTHS AGO 12 MONTHS AGO QoQ CHANGE YoY CHANGE SETTLED SALES LAST12 MONTHS
Get More| Get Moved| Get Sold www.professionals.co.nzLicensedREAA2008 OTAGO$952,000$956,000$860,000 0.4%10.7%5290 CENTRAL OTAGO$908,000$888,000$783,0002.3%16.0%624 ALEXANDRA $756,000$753,000$685,0000.4%10.4%134 BRIDGEHILL $908,000$905,000$804,0000.3%12.9%38 CLYDE $977,000$939,000$787,0004.0%24.1%35 CROMWELL $963,000$939,000$835,0002.6%15.3%207 MOUNTPISA $1,369,000$1,310,000$1,095,0004.5%25.0%27 CLUTHA $445,000$454,000$405,000 2.0%9.9%360 BALCLUTHA $446,000$456,000$410,000 2.2%8.8%100 KAITANGATA $286,000$289,000$245,000 1.0%16.7%20 MILTON $447,000$460,000$410,000 2.8%9.0%65 WAIHOLA $666,000$688,000$628,000 3.2%6.1%20 DUNEDIN $707,000$737,000$704,000 4.1%0.4%2265 ABBOTSFORD $655,000$704,000$674,000 7.0% 2.8%33 ANDERSONSBAY $719,000$771,000$731,000 6.7% 1.6%44 BELLEKNOWES $852,000$887,000$823,000 3.9%3.5%37 BROCKVILLE $533,000$567,000$544,000 6.0% 2.0%21 CALTONHILL $503,000$525,000$511,000 4.2% 1.6%32 CAVERSHAM $479,000$514,000$484,000 6.8% 1.0%46 CONCORD $620,000$642,000$622,000 3.4% 0.3%28 CORSTORPHINE $650,000$684,000$624,000 5.0%4.2%32 DUNEDINCENTRAL $751,000$785,000$736,000 4.3%2.0%73
FRANKTON $1,151,000$1,189,000$1,088,000 3.2%5.8%89
HOLMESHILL $616,000$595,000$518,0003.5%18.9%42
DraggingSouthlanddownwasthe3%valuedeclineinits biggestcentre, Invercargill.TheslideinSouthlandandGoredistrictswassmaller(1%and0.2% respectively) butboth TAsare low-salesenvironmentsand haven'tseentherapid growthseeninthelikesof Wellington.
Otago'smostexpensivehousingmarket,Queenstown-Lakes,hasn'tsuccumbed tothemarketdownturnyet,withitsaveragepropertyvalueup1.8%($33,000)over thequarterto$1.87m.The region'sbiggesthousingmarketontheother handhasfelt thewinterchill.Dunedin'saveragepropertyvaluefell4.1%($30,000)overthesame periodto$707,000,andisjust0.4%up yearonyear,withhousepricesin13ofthecity's suburbslowerthanthey were inSeptember2021.
FAIRFIELD $805,000$831,000$773,000 3.1%4.1%42
ALBERTTOWN $1,497,000$1,435,000$1,234,0004.3%21.3%68
WANAKA $1,993,000$2,032,000$1,661,000 1.9%20.0%393
KAKANUI $643,000$630,000$541,0002.1%18.9%26
QUEENSTOWN-LAKES$1,878,000$1,845,000$1,597,0001.8%17.6%1458
KAIKORAI $625,000$651,000$628,000 4.0%
ARTHURSPOINT $1,589,000$1,525,000$1,405,0004.2%13.1%30
$754,000$795,000$745,000
MAORIHILL $1,139,000$1,155,000$1,060,000 1.4%7.5%48 MORNINGTON $610,000$641,000$630,000 4.8% 3.2%58 MOSGIEL $766,000$774,000$747,000 1.0%2.5%320 MUSSELBURGH $689,000$718,000$682,000 4.0%1.0%37 NORTHDUNEDIN $792,000$818,000$795,000 3.2% 0.4%45 NORTH EAST VALLEY $580,000$594,000$580,000 2.4%0.0%77 OPOHO $753,000$775,000$726,000 2.8%3.7%20 RAVENSBOURNE $568,000$582,000$555,000 2.4%2.3%21 ROSLYN $940,000$972,000$919,000 3.3%2.3%41 SAINTCLAIR $966,000$1,004,000$904,000 3.8%6.9%52 SAINTKILDA $530,000$553,000$532,000 4.2%
LOWERSHOTOVER $1,623,000$1,643,000$1,373,000 1.2%18.2%81
OTEMATATA $588,000$562,000$502,0004.6%17.1%22
KELVINHEIGHTS $2,602,000$2,660,000$2,224,000 2.2%17.0%22
HEIDELBERG $421,000$426,000$386,000 1.2%9.1%60 $403,000$420,000$379,000 4.0%6.3%59 $443,000$458,000$425,000
SOUTHDUNEDIN $433,000$450,000$448,000 3.8% 3.3%92
GLENORCHY $1,405,000$1,359,000$1,127,0003.4%24.7%26
OAMARU $471,000$457,000$404,0003.1%16.6%71
SOUTHLAND $520,000$532,000$477,000 2.3%9.0%2265 GORE $456,000$457,000$417,000 -0.2%9.4%277 EAST GORE $399,000$381,000$336,0004.7%18.8%30 GORE $473,000$470,000$437,0000.6%8.2%174 MATAURA $242,000$254,000$224,000 4.7%8.0%47 INVERCARGILL $513,000$529,000$483,000 3.0%6.2%1374 APPLEBY $327,000$353,000$319,000 7.4%2.5%92 AVENAL $509,000$526,000$468,000 3.2%8.8%26 BLUFF $326,000$350,000$313,000 6.9%4.2%62 CLIFTON $379,000$402,000$365,000 5.7%3.8%38 GEORGETOWN $388,000$397,000$354,000 2.3%9.6%45 GLADSTONE $643,000$660,000$587,000 2.6%9.5%56 GLENGARRY $436,000$454,000$416,000 4.0%4.8%88 GRASMERE $478,000$493,000$448,000 3.0%6.7%70 HARGEST
WESTON $771,000$742,000$602,0003.9%28.1%31 $542,000$550,000$487,000 $484,000$508,000$457,000 4.7%5.9%22
WAIKOUAITI $531,000$546,000$515,000 2.7%3.1%37
WAVERLEY $827,000$886,000$834,000 6.7% 0.8%38
HELENSBURGH 5.2%1.2%26 0.5%38 1.2%42 0.4%120
OTAGOAND SOUTHLAND
NEWFIELD
1.5%11.3%25 HAWTHORNDALE
Otago'saveragepropertyvaluedropped0.4%($4000)to$952,000inthelastthree months,whileSouthland'sfell2.3%($3000)to $520,000overthesameperiod.Property valuesinboth regionsarestill more than30%abovewhere they were atthe startofpostCovidboom,but thegainsmadeinthelatter halfoflastyearwillslowlybeeatenaway bythe slump.
KARITANE $747,000$773,000$652,000 3.4%14.6%22 KENMURE $651,000$700,000$659,000 7.0%
TAINUI $645,000$676,000$650,000 4.6% 0.8%24
LAKEHAYES $2,481,000$2,334,000$1,933,0006.3%28.3%68
FERNHILL $1,238,000$1,268,000$1,169,000 2.4%5.9%52
HAMPDEN $463,000$461,000$401,0000.4%15.5%26
OneRoof.co.nz 37
JACKSPOINT $1,908,000$1,865,000$1,548,0002.3%23.3%169
LAKEHAWEA $1,219,000$1,226,000$957,000 0.6%27.4%50
KINGSTON $787,000$795,000$682,000 1.0%15.4%37
LOWER SOUTH ISLAND
KINGSWELL
SOUTHHILL $555,000$547,000$474,0001.5%17.1%76
WAKARI $639,000$671,000$648,000 4.8% 1.4%43
QUEENSTOWN $1,611,000$1,577,000$1,415,0002.2%13.9%149
ASHLEYCHURCH’S adviceforthosewhoareholding back because of house priceandinterest rateworries. "HOME OWNERSHIP TRANSFORMSOUR RELATIONSHIPWITH SOCIETY.ITENHANCESOUR SENSEOFCIVICRESPONSIBILITY AND,OVER TIME,INCREASES OURWEALTH." 38 OneRoof.co.nz
COMMENT
Thesethoughtsareneitherunreasonable,nornew–infacteverygenerationoffirst-homebuyersthatwent beforeyouhavegrappledwiththesameissues–sohere
Iftheanswertothisquestionisyes –ifyourplanisto remain ahomeownerineitheryourfirstorsubsequent homes –thenthetimetobuyisnow.Why?Because themediumtolong-termtrajectoryofhouseprices isupwhichmeansthatwhateveryoupaytodaywill beeclipsedbywhatyourhouse is worthin10,15or 20years. Ioncehaggledoverthe last$5000in ahouse purchasewhereIeventuallypaid$371,500.Eighteen yearslaterthathouseisnowwortharound$1.8million. Therateofgrowthmaynotbeatquitethatpacegoing forward,butitillustratestheimportanceofkeepingthe biggerpictureinmind.
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Buyingnowdoesn’tmeanyoucan’tmake agreat purchase.Oneoftheadvantagesof aflatmarketisthat everythingisupfornegotiation.Ifyouhavetheluxuryof
Did youpredictthatthe propertymarket would peakin Novemberoflastyear?
e
Infact,NewZealandhousepricesalmostexactly doubledinvalue,onaverage,ineverydecadebetween 1980and2010–anddoubledagaininthe12years between2010and2022–withthatgrowthinhousevalues givingusthefreedomtotravel,investinbusinesses, assetsandideas,improveourlivesandprepareforour retirement.It’sprimarilyforthisreasonthatIstrongly believethatthere’sno‘bad’timetobuyandthatthe righttimetogetintothemarketisassoonasyou’reina positiontodoso.
Ifyoudidn’tseethesuddenturninthe marketcominglastyear,you’reingoodcompany. Noonedid.Foralloftheheadlines, hyperbole –notoneeconomistor commentatorsawthe peak comingandtheywereallcaughtoffguard.My point?Thesameistruewithpickingthebottomofthe market.Everyonethinkstheycandoit,butnoone really can –andwhenitturns,it canturnquickly.
Once you’ve bought ahome,isityour intention to ownone forthe rest of yourlife?
time,testthemarketto seewhetherthatplaceyoulove reallyisoutofyourpricerange.Ifyou’rereadytobuy, theheadlines areirrelevant.It’sallaboutwhatgoeson betweenyouandthe vendor.
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Bestofluck,whateveryouchoosetodo.
OURPREMIUMIN-HOUSEHOMEPRESENTATIONTEAM
HomeStyling
Ifyou’reapotentialfirst-homebuyer andhave read thisfaryouprobablyalreadyknowallofthis –but youmayalsobeholdingbackfrom acting basedon uncertaintyabouthouse pricesorinterestrates,orin thebeliefthatyoumightbeable tosnap up abargainby waiting abitlonger.
3Areyouhoping to get abargain?
’vehadthevery real privilegeof mentoring manypeopleintheirpropertyjourney overthe years –butby far themostsatisfyingofthese relationships arethosewhich haveinvolvedhelping people getintotheir firsthome.Thereare few things asfulfillingasknowing thatyou’veplayed apartin helpingtoget someoneontothepropertyladderand, asI’vestatedmanytimesbefore,if Ihadmy way,firsthomeownership wouldbeoneoftheprimarypolicy aspirationsof anygovernment.
MCDOWELL
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Why?Becausehome-ownershiptransformsour relationshipwithsociety.Itenhancesoursenseofcivic responsibility,amplifiesourcontributiontotheeconomy, givesmeaningtoourparticipationinsocialdemocracy and,overtime,increasesourwealth.
aresomequestionsthatmighthelp youtodecidewhetherwaitingis reallytherightchoiceforyou:
Ialreadyknowyouranswertothisquestion –it’s‘no’. Ofcourseyouexpectyourincometoincreaseovertime–andthe sameistrueofprettymucheveryotheraspectof yourlife.Lifeisaboutchangeandchallenges –somewill begood, somemaybenotsogood –butmostofus come throughthetoughtimesstrongerfortheexperience. Nothinginlifeiscertain–butowningyour ownhome willgiveyou adegreeofindependenceandstability whichwillmakeitthatbiteasiertofacethechallenges thatmight comeuponyou.
•AshleyChurchisapropertycommentatorfor OneRoof.co.nznzandarealestatebusinessowner. EmailhimatAshley@nzmemail.com
Whyright nowisstill thebesttimetobuy
Do youexpecttobeearningwhatyou’re earningnowin20years?
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Withover 111yearsofserv unity, ourknowledge and service is likenoother Licensed REAA 2008 We are ingthe Rotorua comm
